South Carolina General Assembly
105th Session, 1983-1984

Bill 3282

                    Current Status

Bill Number:               3282
Ratification Number:       385
Act Number:                346
Introducing Body:          House
Subject:                   Relating to tax refunds to taxpayers by
                           the South Carolina Tax Commission
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A346, R385, H3282)

AN ACT TO AMEND SECTION 12-7-2240, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAX REFUNDS TO TAXPAYERS BY THE SOUTH CAROLINA TAX COMMISSION, SO AS TO PROVIDE THAT IN THE CASE OF A JOINT RETURN THE REFUND DUE THE TAXPAYER OWING PAST-DUE CHILD SUPPORT MUST BE APPORTIONED ACCORDING TO THE ADJUSTED GROSS INCOME OF EACH PERSON AND MUST BE TRANSFERRED TO THE DEPARTMENT; TO PROVIDE THAT THE FILING OF A JOINT RETURN IN THIS CASE CONSTITUTES A WAIVER OF THE RIGHT TO FILE AN INDIVIDUAL RETURN; AND TO DELETE THE PROVISIONS WHICH PROVIDE FOR THE CONTENTS OF THE NOTICE TO THE TAXPAYER OF THE TRANSFER TO THE DEPARTMENT OF THE REFUND FUNDS EQUAL TO PAST-DUE SUPPORT, AND TO AMEND SECTION 43-5-220, AS AMENDED, RELATING TO PROCEEDINGS FOR OBTAINING SUPPORT PAYMENTS FROM ABSENT PARENTS, SO AS TO ALLOW THE DEPARTMENT OF SOCIAL SERVICES TO SUBMIT TO THE SOUTH CAROLINA TAX COMMISSION FOR COLLECTION AND SETOFF ANY DEBT FOR PAST-DUE SUPPORT OWED THE DEPARTMENT OR OWED TO AN INDIVIDUAL NOT OTHERWISE ELIGIBLE FOR COLLECTION SERVICES WHO HAS MADE APPLICATION TO THE DEPARTMENT AND PAID A FEE TO THE DEPARTMENT TO COVER COSTS AND TO PROVIDE FOR THE DEPARTMENT TO REFUND ANY MONIES WRONGFULLY COLLECTED FROM THE DEBTOR; AND TO REQUIRE THE DEPARTMENT TO REIMBURSE THE COMMISSION FOR EXPENSES INCURRED IN ADMINISTERING THE PROGRAM.

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

Past due child support

SECTION 1. Subsection B of Section 12-7-2240 of the 1976 Code, as added by Act 103 of 1983, is amended to read:

"B. Upon notification from the Department of Social Services Child Support Enforcement Division that the taxpayer owes past-due support which is at least sixty days in arrears and the amount owed is in excess of twenty-five dollars, the commission shall determine whether a refund in excess of twenty-five dollars is due to the debtor and shall transfer to the Department of Social Services an amount equal to the refund owed not to exceed the amount of past-due support. From this amount, the department shall reimburse the commission for expenses incurred in administering this program.

At the time of the transfer of funds, the commission shall send written notification to the taxpayer that the transfer has been made. In the case of a joint return, the refund must be apportioned according to the adjusted gross income of each person. The amount so apportioned and due the taxpayer owing the past-due child support must be transferred to the department. The filing of the joint return in this case constitutes a waiver of the right to file an individual return.

As used in this section, the term 'past-due support' means the amount of the delinquency, owed under a court order, for support and maintenance of a child or of a child and the parent with whom the child is living."

Department may submit to Tax Commission debt for past due support

SECTION 2. An undesignated subsection of Section 43-5-220, as added by Act 103 of 1983, is amended to read:

"( ) The department may submit to the State Tax Commission for collection and setoff any debt for past-due support owed to the department or owed to an individual not otherwise eligible for collection services who has made application to the department. The debt for past-due support must be at least sixty days in arrears and is in excess of twenty-five dollars as provided in Section 12-7-2240. At the time of the submission, the department shall notify the debtor that his state tax refund will be subject to a debt for past-due support. The notice shall set forth the name of the debtor, the amount of the claimed debt, the intention to set off the refund against the debt, the taxpayer's opportunity to give written notice to contest the setoff within thirty days of the date of mailing of the notice, the appropriate office of the department to which the application for a hearing must be sent, and the fact that failure to apply for a hearing in writing within the thirty-day period will be considered a waiver of the opportunity to contest the setoff. If the debtor makes written application to contest the setoff within thirty days of notification, the department shall provide an opportunity for a hearing and is responsible for refunding any monies wrongfully collected. If no application is made, the debtor's refund must be used to set off the amount owed. From the amount transferred from the commission, the department shall reimburse the commission for expenses incurred in administering this program. In the case of an individual not otherwise eligible for collection services, a fee must be imposed by the department to cover all costs."

Time effective

SECTION 3. This act shall take effect upon approval by the Governor.