Setoff Debt Collection Act
South Carolina · Taxation · §§ 12-56-10 to 12-56-90 · 16 sections
Overview
The Setoff Debt Collection Act governs the collection of delinquent debts owed to government agencies by intercepting tax refunds otherwise payable to the debtor. It lets a creditor agency certify a debt to the state revenue department, which then applies the refund against the amount owed, transmits the proceeds to the agency, and provides an accounting so the debtor's obligation can be credited. The act also sets out the procedural framework around that setoff — written notice of intent to the debtor, a protest and hearing process with defined time limits, administrative fees, rules of priority when multiple claims compete for the same refund, and confidentiality restrictions limiting agencies to using the disclosed taxpayer information solely for collection, with penalties for improper disclosure.
Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.
In the courts
Sections of this act have been cited in 2 court decisions.
Most-cited authority: 353 S.C. 1 - Gardner v. South Carolina Department of Revenue
Sections covered
- S.C. Code Ann. § 12-56-10Short title
- S.C. Code Ann. § 12-56-100Indemnification of department by agency
- S.C. Code Ann. § 12-56-110Department regulations, forms and procedures permitted
- S.C. Code Ann. § 12-56-120Department and Internal Revenue Service exempt from notice and appeal procedures; other procedures as exclusive remedy
- S.C. Code Ann. § 12-56-20Definitions1 cite
- S.C. Code Ann. § 12-56-30Collection of debt; information to be given by claimant agency; information to be given by department to claimant agency
- S.C. Code Ann. § 12-56-40Choice of claimant agency as to use of or participation in setoff program
- S.C. Code Ann. § 12-56-50Department to assist in collection of account or debt by setoff of any refunds due to debtor
- S.C. Code Ann. § 12-56-60Notification by claimant agency; refund determinations; department liability
- S.C. Code Ann. § 12-56-62Notice of intention to setoff debt; form, delivery and presumption
- S.C. Code Ann. § 12-56-63Protest procedure; administrative fees1 cite
- S.C. Code Ann. § 12-56-65Protest and contested case hearings; refunds; erroneous retention or setoff; time limit
- S.C. Code Ann. § 12-56-67Jury trial rights
- S.C. Code Ann. § 12-56-70Priority of claims to refund
- S.C. Code Ann. § 12-56-80Proceeds collected transmitted to agency; accounting provided by department to agency; credit to debtor's obligation by agency; notification of agency to debtor of setoff
- S.C. Code Ann. § 12-56-90Information from department to be used only by agency for collection purposes; penalties for disclosure
Enacted in other states
All South Carolina named statutes →
Download
Copy
Embed on your site
Hover to preview · click to copy the code