Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since January 1, 2020, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R21. Administrative Services, Debt Collection.
Rule R21-3. Debt Collection Through Administrative Offset.
As in effect on January 1, 2020
Table of Contents
- R21-3-1. Purpose.
- R21-3-2. Authority.
- R21-3-3. Definitions.
- R21-3-4. Eligible Accounts Receivable.
- R21-3-5. Submission of Accounts Receivable to the Division.
- R21-3-6. Control of Matched Tax Overpayments or Payment Due to Entity by the Division.
- R21-3-7. Notification to Debtors.
- R21-3-8. Notification and Response.
- R21-3-9. Treatment of Injured Spouse Forms.
- R21-3-10. Offsetting Matched Accounts.
- R21-3-11. Release of Offset Funds by the Division.
- R21-3-12. Credit of Accounts Receivable.
- R21-3-13. Administrative Fee.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
The purpose of this rule is to establish procedures to be followed by agencies to reduce or eliminate accounts receivable through administrative offset of tax overpayments or state payments due to entities.
This rule is established pursuant to Subsection 63A-3-310, and Subsection 63A-3-504(2)(f), which authorize the Division of Finance to establish, by rule, an implementation of the debt collection technique of administrative offset.
In addition to terms defined in Section 63A-3-501, the following terms are defined below as follows:
(1) "Division" means the Division of Finance.
(2) "Match or Matched" means a one-to-one corresponding of a social security number or a federal employer's identification number between the entity and the tax overpayment or other state payment to the entity.
(1) If a delinquent account receivable meets the criteria established under Section 59-10-529, an agency shall proceed under this rule to collect the delinquent amount against tax overpayments.
(2) If a delinquent account receivable meets the criteria established under Section 63A-3-302, an agency shall proceed under this rule to collect the delinquent amount against tax overpayments or state payments due to entities.
(1) Upon qualifying the account for administrative offset as established in Section R21-3-4, the agency shall submit the account receivable to the division. The account receivable submission shall include:
(a) name of entity;
(b) social security number or federal employer's identification number of the entity;
(c) amount of delinquent account receivable; and
(2) Once the account has been established for administrative offset, it matches continuously from the date of the establishment until the account receivable is totally satisfied.
The division shall place the entity's matched tax overpayment or payment due to entity in a separate agency fund in the State's Accounting System (FINET).
All notifications required in 63A-3-303 must be sent within two business days of the date listed on the notice.
(1) The division shall notify the agency submitting the account receivable of each administrative offset match.
(2)(a) The agency shall verify the delinquent account balance; and
(b) notify the division of the amount to be offset.
(3) The amount shall include the outstanding balance of the delinquent account receivable plus any penalty, interest or applicable collection costs.
(4) The agency shall identify for the division the exact amount(s) to be offset as early as practicable.
(1) Subject to Subsection R21-3-9(2), upon receipt of an injured spouse claim from the spouse of a debtor, a garnisher shall:
(a) Review the claim for validity;
(b) Determine the frequency of claims made; and,
(c) Release the offset of matched funds proportionate to the income of the injured spouse using the following formula: (income of injured spouse/total household gross income) x levied amount.
(2) Recognizing that garnishers are not statutorily required to honor injured spouse claims:
(a) Agencies garnishing taxes under this section must honor at least a first-time injured spouse claim that is determined to be valid.
(b) Subsequent claims may be denied at the discretion of the garnisher.
(3) Valid injured spouse claims should require at a minimum:
(a) Federal tax returns
(b) IRS Form 8379
(c) Income documents, including all Form W-2s and Form 1099s.
(d) State tax returns.
(1) The division will offset the matched entity tax overpayment or payment due to entity by:
(a) an "administrative fee". Which shall be charged for performing debt-collection functions associated with the administrative offset; plus
(b) the amount identified in Subsection R21-3-8(3) to satisfy the delinquent account receivable.
(1) The division shall retain the administrative charge.
(2) The division shall release the offset funds to the agency.
(3) The division shall release the balance of any available funds from the match to the entity.
Upon receipt of the offset funds from the division, the agency shall deposit the amount into their account and credit the entity's accounts receivable for the amount received.
Pursuant to Section 63A-3-502(4), the division may charge the agency a fee for the debt collection effort. This fee may be deducted from the amounts collected.
accounts receivable, administrative offset
August 7, 2019
March 17, 2017
For questions regarding the content or application of rules under Title R21, please contact the promulgating agency (Administrative Services, Debt Collection). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.