Missouri Revised Statutes













Chapter 32

State Department of Revenue

←32.384

Section 32.385.1

32.400→

August 28, 2015

Offset of indebtedness agreements with the federal government--definitions--director's powers--certification, contents--federal official's powers--refunds--reciprocal agreements.

32.385. 1. As used in this section, the following terms shall mean:



(1) "Federal official", a unit or official of the federal government

charged with the collection of nontax liabilities payable to the federal

government under 31 U.S.C. Section 3716, as amended;



(2) "Nontax liability due the state", a liability certified to the

director of revenue by a state agency and shall include, but shall not be

limited to, fines, fees, penalties, and other nontax assessments imposed by

or payable to any state agency that is finally determined to be due and

owing;



(3) "Offset agreement", the agreement authorized by this section;



(4) "Person", an individual, partnership, society, association, joint

stock company, corporation, public corporation, or any public authority,

estate, receiver, trustee, assignee, referee, and any other person acting

in a fiduciary or representative capacity whether appointed by a court or

otherwise, and any combination of the foregoing;



(5) "Refund", an amount described as a refund of tax under the

provisions of the state tax law that authorized its payment;



(6) "State agency", any department, division, board, commission,

office, or other agency of the state of Missouri;



(7) "Vendor payment", any payment, other than a refund, made by the

state to any person or entity, and shall include but shall not be limited

to any expense reimbursement to an employee of the state; but shall not

include a person's salary, wages, or pension.



2. The director of revenue and the commissioner of administration may

jointly enter into a reciprocal collection and offset of indebtedness

agreement with the federal government, under which the federal government

will offset from federal payments to vendors, contractors, and taxpayers

debt owed to the state of Missouri, and the state will offset from state

tax refunds and from payments otherwise due to vendors and contractors

providing goods or services to state departments, agencies, or other state

agencies nontax debt owed to the federal government.



3. Under the offset agreement, the director of revenue may:



(1) Certify to a federal official the existence of a person's

delinquent tax or nontax liability due the state owed by the person to any

state agency;



(2) Request that the federal official withhold any eligible vendor

payment to which the person is entitled; and



(3) Provide for the payment of the amount withheld to the state.



4. A certification by a state agency to the director of revenue and

by the director of revenue to the federal official under the offset

agreement shall include:



(1) The full name and address of the person and any other names known

to be used by the person;



(2) The Social Security number or tax identification number;



(3) The amount of the tax or nontax liability;



(4) A statement that the debt is past due and legally enforceable in

the amount certified; and



(5) Any other information required by federal statute or regulation

applicable to the collection of the debt by offset of federal payments.



5. Under the offset agreement, a federal official may:



(1) Certify to the state of Missouri the existence of a person's

delinquent nontax liability owed by the person to the federal government;



(2) Request that the state of Missouri withhold any refund and vendor

payment to which the person is entitled;



(3) Certify and request the state of Missouri to withhold a refund or

vendor payment only if the laws of the United States:



(a) Allow the state of Missouri to enter into a reciprocal agreement

with the United States, under which the federal official would be

authorized to offset federal payments to collect delinquent tax and nontax

debts owed to the state; and



(b) Provide for the payment of the amount withheld to the state;



(4) Retain a portion of the proceeds of any collection setoff as

provided under the offset agreement.



6. Under the offset agreement, a certification by a federal official

to the state of Missouri shall include:



(1) The full name of the person and any other names known to be used

by the person;



(2) The Social Security number or federal tax identification number;



(3) The amount of the nontax liability; and



(4) A statement that the debt is past due and legally enforceable in

the amount certified.



7. If a person for whom a certification is received from a federal

official is due a refund of Missouri tax or a vendor payment, the agreement

may provide that the state of Missouri shall:



(1) Withhold a refund or vendor payment that is due a person whose

name has been certified by a federal official;



(2) In accordance with the provisions of the offset agreement, notify

the person of the amount withheld in satisfaction of a liability certified

by a federal official;



(3) Pay to the federal official the lesser of:



(a) The entire refund or vendor payment; or



(b) The amount certified; and



(4) Pay any refund or vendor payment in excess of the certified

amount to the person.



8. Notwithstanding any other provisions of law to the contrary, the

director of revenue and the commissioner of administration shall have the

authority to enter into reciprocal agreements with any other state which

extends a like comity to this state to offset from state tax refunds and

from payments otherwise due to vendors and contractors providing goods or

services to state departments, agencies, or other state agencies nontax

debt for debts due the other state that extends a like comity to this

state.



(L. 2015 H.B. 384)







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