SECTION 710:50-11-6. Priority of claims; procedures

(a)   The Tax Commission shall have first priority over all qualified entities when the Tax Commission is collecting a debt, municipal fines and cost, or final judgment. Subsequent to the Tax Commission priority, a claim filed by the Department of Human Services for the collection of child support and spousal support shall have priority over all other claims filed pursuant to this Subchapter. Priority in multiple claims by other qualified entities pursuant to the provisions of this Section shall be in the order in which the Tax Commission receives the claim from the qualified entities required by (b) of this Section. [See: 68 O.S. § 205.2(G)]

(b)   A qualified entity seeking to collect a debt, unpaid fines and cost, or final judgment of at least Fifty Dollars ($50.00) from an individual who has filed a state income tax return may file a claim with the Tax Commission, requesting that the amount owed to the qualified entity be deducted from any state income tax refund due to that individual. The claim shall be filed electronically in a form prescribed by the Tax Commission and shall contain information necessary to identify the person owing the debt, including the full name and Social Security Number of the debtor. [See: 68 O.S. § 205.2(B)]

(c)   Upon receiving a claim from a qualified entity, the Tax Commission shall deduct the claim amount, plus collection expenses as provided in OAC 710:50-11-11, from the tax refund due the debtor and transfer the amount to the qualified entity. Provided, the Tax Commission need not report available funds of less than Fifty Dollars ($50.00).

(d)   The Tax Commission has established a central computerized record keeping system to implement the identification of such debtors and may, upon the proper establishment of a claim by a referring agency, intercept a taxpayer's Oklahoma Income Tax Refund and deliver over the proceeds to the referring agency to satisfy the debtor's or municipal court defendant's obligations.

[Source: Added at 22 Ok Reg 1532, eff 6-11-05; Amended at 28 Ok Reg 935, eff 6-1-11; Amended at 30 Ok Reg 1855, eff 7-11-13; Amended at 33 Ok Reg 1068, eff 8-25-16]