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MEDICAL SERVICES POLICY MANUAL,SECTION M M-500 State Income Tax Refund Interception (STRI) M 510 Accounts Eligible for Interception

M-500 State Income Tax Refund Interception (STRI)

MS Manual 01/01/14 Act 372 of 1983 as amended (Ark. Stats. Ann. § 84-4901 thru 84-4918) and Act 987 of 1985 authorizes the collection ofdebts owed the Department of Human Services (DHS) through the interception of State Income Tax Refunds. The Office of Finance and Administration/Accounts Receivable will submit a list of households with a receivable balance of debts to the Department of Finance and Administration, Income Tax for State Tax Refund Intercept. Act 987 requires notification to households who owe a debt to the State before this information is furnished to the Revenue Division of the Department of Finance and Administration. A notice of DHS intention to intercept refunds will be mailed by Central Office to the taxpayer prior to December 1 of each year. The taxpayer has thirty (30) days from the date the notice is mailed to file a written request for a hearing. If no hearing is requested within (30) days, any refund determined to be available may be intercepted and mailed to the Office of Finance and Administration to be allocated within the Department of Human Services by priority.

M-510 Accounts Eligible for Interception MS Manual 01/01/14 • In order for an account to be submitted for State (Income) Tax Refund Intercept, the following conditions must be met: • The amount owed the State must be certified by the Submitting Department. • The taxpayer must have been notified of the debt in at least one demand letter. • The debt must be at least $20.00.

M-520 Requesting the Hearing MS Manual 01/01/14 • The taxpayer has thirty (30) days from the mailing date of the Intent to Intercept Notice to file a written request for a hearing. All hearing requests should be sent to: Collection Unit of Accounts Receivable P.O. Box 1437, Slot #WG-2 Little Rock, Arkansas 72203