Ohio Administrative Code|Rule 5703-7-13 | State income tax refund offsets; portion of joint refund not belonging to obligor or recipient.

                                                
(A) Refunds of income taxes under Chapter 5747. of the Revised
		  Code are subject to offset under sections 5747.12, 5747.121, 5747.122 and
		  5747.123 of the Revised Code. The tax commissioner will identify those
		  taxpayers due a refund who are subject to such offset based upon information
		  provided by any state or federal agency.
The commissioner will immediately disburse the
		  refunds of those taxpayers to the appropriate fund or agency, to the extent
		  they do not exceed the outstanding balance to be collected by such offset, and
		  except as provided in paragraph (B) of this rule. Any remaining portion of the
		  tax refunds will be paid to the taxpayer.
(B)  
(1) A "liable spouse" is a taxpayer,
			 included on a jointly filed individual income tax return, who is liable for a
			 debt under sections 5747.12, 5747.121, 5747.122 and 5747.123 of the Revised
			 Code. A "non-liable spouse" is a taxpayer, included on a jointly
			 filed individual income tax return, who is not liable for a debt under sections
			 5747.12, 5747.121, 5747.122, and 5747.123 of the Revised Code.
(2) In the case of taxpayers who file joint
			 returns, where one taxpayer is a liable spouse and one taxpayer is a non-liable
			 spouse, only the portion of the refund belonging to the liable spouse is
			 subject to the offset under paragraph (A) of this rule. The burden is on the
			 taxpayers to prove that a portion of the refund is not subject to offset based
			 on the information shown on the taxpayers' joint income tax return and the
			 attachments thereto.
(3) The commissioner will notify the taxpayers that they have
			 twenty-one days from receipt of the notice to prove the portion of the
			 taxpayers' refund not subject to offset by utilizing the following
			 calculation:
(a) Step 1: The taxpayer
				shall compute the ratio of the non-liable spouse's portion of the
				taxpayers' Ohio adjusted gross income to the total Ohio adjusted gross
				income as reporting for the tax year at issue. In computing this amount, the
				taxpayer shall utilize only those adjustments contained in division (A) of
				section 5747.01 of the Revised Code related to the income included in the
				non-liable spouse's portion of federal adjusted gross income.
(b) Step 2: The taxpayer
				shall multiply the taxpayers' total tax liability prior to applying any
				payments or withholding, by the ratio obtained in step 1.
(c) Step 3: The taxpayer
				shall subtract the product obtained in step 2 from the portion of all payments,
				including withholdings and estimated payments, belonging to the non-liable
				spouse.
(4) If the taxpayers have provided a calculation
			 under paragraph (B)(3) of this rule, the commissioner shall review the
			 calculation.
(a) If the commissioner
				concurs, the offset under paragraph (A) of this rule will not include any
				amounts due to the non-liable spouse. The commissioner will immediately
				disburse such portion of the refund belonging to the liable spouse to the
				appropriate fund or agency.
(b) If the commissioner
				does not concur, the commissioner will notify the taxpayers and provide a
				revised calculation. The notice will advise them that they have twenty-one days
				from receipt of the notice to:
(i) For amounts subject to offset under section
				  5747.12 of the Revised Code, submit any additional documentation to refute the
				  revised calculation;
(ii) For amount subject to offset under sections
				  5747.121, 5747.122, and 5747.123 of the Revised Code, file a complaint with the
				  commissioner concerning the revision, along with an optional request for a
				  hearing.
(5)  If the taxpayers submit additional documentation pursuant to
			 paragraph (B)(4)(b)(i) of this rule, the commissioner shall review the
			 documentation and make any necessary adjustments. If the taxpayers file a
			 complaint pursuant to paragraph (B)(4)(b)(ii) of this rule, the commissioner
			 shall proceed according to the relevant statutory provisions. Otherwise, the
			 commissioner's revised calculation will be substituted for that of the
			 taxpayers. The commissioner will then make any disbursements in the same manner
			 as under paragraph (A) of this rule.
(6) If no such proof or review request is
			 submitted within the time specified, the full refund will be subject to offset
			 under a paragraph (A) of this rule.
(C) For purposes of this rule, notices sent by the commissioner
		  by ordinary mail are rebuttably presumed to be received by the taxpayers seven
		  days after the mailing thereof.
(D) Nothing in this rule shall be construed to limit any
		  subsequent corrections, assessments, or refunds within the applicable statutes
		  of limitation.