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CODE OF COLORADO REGULATIONS 8 CCR 1403-1 Colorado Child Care Assistance Program

137 a. Judgments; b. Garnishments; c. Claims on estates; and d. The state income tax refund intercepts process. 7. In accordance with sections 26.5-4-119 and 39-21-108, C.R.S., the state and counties or their designees may recover overpayments of public assistance benefits through the offset (intercept) of a taxpayer's State Income Tax Refund. a. This method may be used to recover overpayments that have been: 1) Determined by final agency action; 2) Ordered by a court as restitution; or 3) Reduced to judgment. b. This offset (intercept) may include the current legal rate of interest on the total when fraud or intentional program violation has been determined. Offsets (intercepts) are applied to recoveries through use of a hierarchy. The hierarchy is: 1) Fraud recoveries, oldest to newest; 2) Court ordered recoveries, oldest to newest; and 3) Client error recoveries, oldest to newest. B. Prior to certifying the taxpayer's name and other information to the Colorado Department of Revenue, the Department shall notify the taxpayer, in writing at their last-known address, that the Department intends to use the tax refund offset (intercept) to recover the overpayment. In addition to the requirements of section 26.5-4-119(2), C.R.S., the pre-offset (intercept) notice shall include the name of the counties claiming the overpayment, a reference to child care as the source of the overpayment, and the current balance owed. The taxpayer is entitled to object to the offset (intercept) by filing a request for a county dispute resolution