Page:United States Statutes at Large Volume 112 Part 1.djvu/806

 112 STAT. 780 PUBLIC LAW 105-206—JULY 22, 1998 "(ii) subsection (c) with respect to past-due support; and "(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and "(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. "(4) NOTICE; CONSIDERATION OF EVIDENCE.— No State may take action under this subsection until such State— "(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; "(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable; "(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and "(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation. " (5) PAST-DUE, LEGALLY ENFORCEABLE STATE INCOME TAX OBLIGATION. —For purposes of this subsection, the term 'pastdue, legally enforceable State income tax obligation' means a debt— "(A)(i) which resulted from— "(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or "(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and "(ii) which is no longer subject to judicial review; or "(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term 'State income tax' includes any local income tax administered by the chief tax administration agency of the State. "(6) REGULATIONS. — The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to

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