The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
012
:
SETOFF DEBT COLLECTION
(Cite as: 32 V.S.A. § 5934)
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§ 5934. Procedure for setoff
(a) Annually, on or before a date specified by the Department, a claimant agency shall
supply the Department with information necessary to identify each debtor whose refund
is sought to be set off and shall certify in writing the amount of each debt submitted
to the Department for collection through setoff.
(b) If a debtor identified by a claimant agency is entitled to a refund, the Department
shall transfer to the claimant agency an amount equal to the refund owed or the amount
of the debt certified by the claimant agency, whichever is less.
(c) Prior to requesting the Department to reduce a taxpayer’s refund by the amount of
certified debt in accord with this subchapter, the claimant agency shall notify the
debtor at the debtor’s last known address. The notice shall state that the agency
intends to request a setoff and shall advise the debtor of the procedure, the amount
and basis for the alleged debt, and that the debtor may contest the validity and amount
of the debt sought to be collected through setoff by applying in writing for a hearing
before the claimant agency within 30 days of the date of mailing of the notice. The
notice shall also include the name and mailing address of the claimant agency to which
the application for a hearing must be sent and shall advise the taxpayer that failure
to apply in writing for a hearing within the 30-day period will be deemed a waiver
of the opportunity to contest the setoff. (Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 1997, No. 156 (Adj. Sess.), § 9, eff. April 29, 1998.)