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

74 6. Pursue all legal remedies available to the county in order to recover the overpayment. Legal remedies include, but are not limited to: a. Judgments; b. Garnishments; c. Claims on estates; and, d. The state income tax refund intercepts process. 7. In accordance with Sections 26-2-133 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; or, 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 Department of Revenue, the Department shall notify the taxpayer, in writing at his/her last-known address, that the state intends to use the tax refund offset (intercept) to recover the overpayment. In addition to the requirements of Section 26-2-133(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 conference or state hearing within thirty (30) calendar-days from the date that the pre-offset notice is mailed, faxed, emailed, sent via other electronic systems, or hand-delivered to the taxpayer. In all other respects, the procedures applicable to such hearings shall be those stated elsewhere in Section 3.840 and Section 3.850. At the hearing on the offset (intercept), the counties or their designee, or an Administrative Law Judge (ALJ), shall not consider whether an overpayment has occurred, but may consider the following issues if raised by the taxpayer in his/her request for a hearing whether: 1. The taxpayer was properly notified of the overpayment, 2. The taxpayer is the person who owes the overpayment, 3. The amount of the overpayment has been paid or is incorrect, or