Page:United States Statutes at Large Volume 122.djvu/3593

 12 2 STA T .3570PUBLIC LA W 110 – 32 8— S E PT. 30 , 2008 SEC.3 . C OL LEC TI O N O FU NE MP LO Y MENT COMPENS A TION D E B TS R ESULTIN G FROM FRAUD. (a)INGE NE RAL.—Section6402 o f t h e Inte r na lR e v en u e C o d e (relatin g to authorit y to m a k e credit s or refunds) is amended b y redesignating subsections (f) through (k) as subsections (g) through (l) , res p ectively, and by inserting after subsection (e) the follo w ing new subsection

‘(f) C O LLE CTI ONO FU NE MP LO Y MENT COMPEN S ATION D E B TS RES U LTIN GF ROM FRAU D .— ‘‘( 1 ) IN GENERAL.—Upon receiving notice from any State that a named person owes a covered unemployment compensa - tion debt to such State, the Secretary shall, under such condi- tions as may be prescribed by the Secretary— ‘‘( A ) reduce the amount of any overpayment payable to such person by the amount of such covered unemploy- ment compensation debt ‘‘( B ) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person ’ s name, ta x payer identification number, address, and the amount collected; and ‘‘(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt. If an offset is made pursuant to a j oint return, the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset. ‘‘(2) P RIORITIES FOR OFFSET.—Any overpayment by a person shall be reduced pursuant to this subsection— ‘‘(A) after such overpayment is reduced pursuant to— ‘‘(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; ‘‘(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 a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. ‘‘( 3 ) O FFSET PERMITTED ONLY AGAINST RESIDENTS OF STATE SEE K ING OFFSET.—Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. ‘‘(4) N OTICE; CONSIDERATION OF E V IDENCE.—No State may take action under this subsection until such State— ‘‘(A) notifies by certified mail with return receipt the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section; Ap p licab ili ty.No ti f icatio n . 26USC 6 40 2.

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