N.M. Admin. Code § 8.50.112.12

Current through Register Vol. 35, No. 23, December 10, 2024

Section 8.50.112.12 - COLLECTION OF PAST DUE SUPPORT BY NEW MEXICO TAXATION AND REVENUE DEPARTMENT BY STATE TAX REFUND OFFSET

New Mexico law allows for the interception (offset) of an obligor's tax refund to pay child support.

A. Criteria for state income tax offset: Cases submitted for tax refund offset to the New Mexico taxation and revenue department (TRD) must meet federal tax refund offset criteria. In interstate cases, if New Mexico is the responding state, obligors are referred to TRD only, not to IRS.

B. Pre-offset notices/final notices: Within 10 days after receiving notification of an offset from TRD, the Title IV-D agency will send a notice to the obligor at his or her last known address of record with the Title IV-D agency. The notice will include:

(1) a statement that an offset will be made and that the Title IV-D agency intends to apply the amount of the offset against a claimed debt;

(2) the amount of the debt asserted;

(3) the name, address, and telephone number of the Title IV-D agency to request a hearing;

(4) the amount of refund to be offset against the debt asserted;

(5) a statement that the obligor has 30 days from the date indicated on the notice to contest the offset and request a hearing; and

(6) a statement that failure of the obligor to 30 days will be deemed a waiver of the opportunity to contest the offset.

C. If the refund against which a debt is intended to be offset results from a joint return, within 10 days after receiving the notification from TRD, the Title IV-D agency will send a notice to the obligor's spouse (injured spouse) as identified on the return, to the obligor's last known address of record with the Title IV-D agency. The notice to the injured spouse will contain the following information:

(1) a statement that an offset may be made and the Title IV-D agency intends to apply the amount of the offset against a claimed debt;

(2) the total amount of the refund and the amount of each claimed debt;

(3) the name, address, and telephone number of the Title IV-D agency;

(4) a statement that no debt is claimed against the injured spouse and that the he or she may be entitled to receive all or part of the refund, regardless of the claimed debt against the obligor;

(5) a statement that to assert a claim to all or part of the refund, the injured spouse must notify the Title IV-D agency within 30 days from the date indicated on the notice of the injured spouse's intention to seek his or her portion of the refund; and

(6) a statement that failure of the injured spouse to notify the Title IV-D agency regarding his or her claim to all or part of the refund within 30 days may be deemed a waiver of any claim.

D. Upon the transfer of money from TRD to the Title IV-D account, the Title IV-D agency will notify the obligor of the final determination of the offset. The notice includes:

(1) the amount of the TRD refund to which the obligor was entitled prior to intercept;

(2) the offset amount and balance, if any, of the debt still due; and

(3) the amount of refund in excess of the debt due and owed to the obligor, if any.

E. Contesting referral for state tax offset: The appeal procedures are the same as for federal tax refund offset with some exceptions.

(1) When the injured spouse 30 days. After the 30 day hold, the state income tax offset monies will be applied as a regular payment and distributed as outlined in 8.50.125.11 NMAC. The obligor shall receive full credit for the entire amount of tax intercept that is applied to his or her case(s) including fees. Distribution of tax intercept money for obligors with multiple Title IV-D cases shall be in accordance with federal and state laws. If an offset is made to satisfy non-TANF past due support from a refund based upon a joint return, the Title IV-D agency may delay distribution of the injured spouse's share until notified that the refund has been paid because of the injured spouse signed a release, or for a period not to exceed six months from notification of offset, whichever is shorter.

N.M. Admin. Code § 8.50.112.12

8.50.112.12 NMAC - Rp, 8.50.112.12 NMAC, 12/30/10, Amended and Renumbered from 8.50.112.11 New Mexico Register, Volume XXXII, Issue 23, December 14, 2021, eff. 1/1/2022