Bill 3379

                    Current Status

Bill Number:               3379
Ratification Number:       791
Act Number                 668
Introducing Body:          House
Subject:                   Relating to the Debt Offset Collection
                           Act

(A668, R791, H3379)

AN ACT TO AMEND SECTIONS 12-54-420, 12-54-430, AND 12-54-460, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEBT OFFSET COLLECTION ACT, SO AS TO DELETE THE EXCLUSION OF THE OFFICE OF CHILD SUPPORT SERVICES OF THE DEPARTMENT OF SOCIAL SERVICES FROM THE DEFINITION OF CLAIMANT AGENCY, TO REQUIRE THE SOUTH CAROLINA TAX COMMISSION TO SUPPLY IDENTIFYING INFORMATION TO CLAIMANT AGENCIES, TO PROVIDE THAT THE TAX COMMISSION MAY RETAIN AN ADMINISTRATIVE FEE FOR EACH SETOFF IN AN AMOUNT NOT TO EXCEED TWENTY-FIVE DOLLARS RATHER THAN A FLAT TWENTY-FIVE DOLLAR FEE UNDER FORMER LAW, AND TO PROVIDE THAT NO INTEREST ACCRUES ON AN INCORRECTLY OFFSET TAX REFUND WHEN THE CLAIMANT AGENCY IS THE OFFICE OF CHILD SUPPORT SERVICES OF THE DEPARTMENT OF SOCIAL SERVICES, AND TO REENACT AND AMEND SECTION 12-7-2240, RELATING TO INCOME TAX REFUNDS AND OFFSET AUTHORITY OF THE TAX COMMISSION, SO AS TO DELETE THE OFFSET AUTHORITY MADE OBSOLETE BY THE DEBT OFFSET COLLECTION ACT.

Be it enacted by the General Assembly of the State of South Carolina:

Code reenacted

SECTION 1. Section 12-7-2240 of the 1976 Code, as repealed by an act of 1988 bearing ratification number 527, is reenacted and amended to read:

"Section 12-7-2240. If the commission discovers from the examination of the return or otherwise that the income tax, penalty, or interest paid by any taxpayer is in excess of the amount legally due, the commission may issue its voucher to the Comptroller General for the refund of the illegally collected income tax, penalty, or interest together with the interest provided in Section 12-7-2310. Upon receipt of the voucher, properly executed and endorsed, the Comptroller General shall issue his warrant to the State Treasurer for the payment to the taxpayer of the refund out of any income tax funds in his possession or out of any income tax funds that may come into his possession.

The commission must keep in its files a duplicate of each voucher and also a statement which must set forth the reasons why the refund was ordered.

This section is in addition to any remedies for the abatement or refund of taxes that may otherwise be provided by law.

No refund is allowed or ordered in an amount less than one dollar."

Definition

SECTION 2. Section 12-54-420(1) of the 1976 Code, as added by an act of 1988 bearing ratification number 527, is amended to read:

"(1) 'Claimant agency' means any state agency, board, committee, commission, public or private institution of higher learning, and the Internal Revenue Service."

Information furnished

SECTION 3. Section 12-54-430 of the 1976 Code, as added by an act of 1988 bearing ratification number 527, is amended by adding at the end:

"(D) Upon request from a claimant agency, the commission shall furnish the claimant agency the home address, corrected Social Security number or additional Social Security number of any taxpayer whose name has been submitted to the commission for collection of a delinquent debt."

Debt set off

SECTION 4. Section 12-54-460(B) of the 1976 Code, as added by an act of 1988 bearing ratification number 527, is amended to read:

"(B) Upon receiving the certification of the claimant agency of the amount of the delinquent debt, the commission shall determine if the debtor is due a refund. If the debtor is due a refund of more than twenty-five dollars, the commission shall set off the delinquent debt against the amount of the refund in excess of twenty-five dollars and transfer the amount set off to the claimant agency. The commission may retain an amount not to exceed twenty-five dollars of each refund set off to defray its administrative expenses. When the claimant agency is the Internal Revenue Service, the commission shall not charge the administrative fee and the total amount of the refund is available for setoff. No apportionment is required in cases of refunds resulting from filing joint returns. The commission shall consider any certified delinquent debt and debtor list provided by a claimant agency as correct. Reviews of refund setoffs are with the claimant agency. If after appropriate review the claimant agency determines that the setoff amount is excessive, it shall refund the appropriate amount to the taxpayer. If, after appropriate review, the claimant agency determines that it is entitled to no part of the amount set off, it shall refund the entire amount plus the administrative fee retained by the commission. That portion of the refund reflecting the administrative fee must be paid from claimant agency funds. If a refund has been retained in error the claimant agency shall pay interest to the taxpayer calculated as provided in Section 12-54-20 from the date provided by law after which interest is paid on refunds until the appeal is final except that no interest accrues when the claimant agency is the Office of Child Support Services of the South Carolina Department of Social Services."

Time effective

SECTION 5. This act takes effect October 15, 1988.