Download This Version in Microsoft Word format
COMMITTEE REPORT
February 20, 2001
S. 220
S. Printed 2/20/01--H.
Read the first time February 14, 2001.
To whom was referred a Joint Resolution (S. 220) to provide that the appeals procedure for actions by the Internal Revenue Service in connection with the setoff of a debt against a taxpayer's refund is governed by Title 26, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR., for Committee.
REVENUE IMPACT1
This bill is not expected to have an impact on state or local revenue in FY2001-02.
Explanation
This bill would exempt the Internal Revenue Service (IRS) from the notification guidelines cited in the South Carolina Setoff Debt Collection Act in Title 12, Chapter 56 of the S.C. Code of Laws, and would instead be bound by Title 26 of the United States Code relating to notices for delinquent debts. The S.C. law requires notification to the taxpayer in the year before the state withholds the refund. By removing this requirement, this will permit the IRS to notify the Department of Revenue (DOR) quicker of any taxpayer delinquencies and allow the DOR to offset the delinquent debts more expeditiously. The largest users of the Setoff Debt program are the Department of Social Services seeking child support payments and colleges and universities seeking defaults on student loans. The Setoff Debt program allows state agencies, cities, and counties to collect delinquent debts that are owed them by withholding any refunds due a taxpayer to offset the delinquent debt.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO PROVIDE THAT THE APPEALS PROCEDURE FOR ACTIONS BY THE INTERNAL REVENUE SERVICE IN CONNECTION WITH THE SETOFF OF A DEBT AGAINST A TAXPAYER'S REFUND IS GOVERNED BY TITLE 26 OF THE UNITED STATES CODE, NOTWITHSTANDING THE PROCEDURE PRESCRIBED IN CHAPTER 56 OF TITLE 12 FOR THE SETOFF DEBT COLLECTION ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Notwithstanding the appeals procedure provided in Chapter 56 of Title 12, relating to the Setoff Debt Collection Act, the appeal procedure for actions of the Internal Revenue Service in connection with debt setoffs is governed by Title 26 of the United States Code.
SECTION 2. This joint resolution takes effect upon approval by the Governor and applies to the 2001 filing period for individual income taxes.
This web page was last updated on Thursday, June 25, 2009 at 2:08 P.M.