Tuesday, May 2, 2017
Scottsboro City Council Work Session, May 1, 2017 - Agenda Item 4 - MUNICIPAL INTERCEPT SERVICES, a problem for joint tax return filers?
Scottsboro City Council photo by G. Morgan
Agenda Item 4 - MUNICIPAL INTERCEPT SERVICES
City of Scottsboro discusses hiring a collection service for individual owed debt, such as delinquent Court Fines. This is an extension of the same law where those who owe Child Support has their income taxes are withheld.
"In 2014 the Alabama State Legislature enacted an amendment allowing municipalities and counties to attempt to collect delinquent debts owed to them by collecting this debt from an individual's State tax refund. This is a process that has been in force for many years for several State agencies but until 2014, was not possible for municipalities or counties. As part of this amendment, the Alabama Department of Revenue agreed to process these debts through only two clearinghouse entities: the Alabama League of Municipalities (ALM) for municipal entities and the Association of County Commissions of Alabama (ACCA) for county entities. In 2015 the Alabama League of Municipalities formed Municipal Intercept Services, LLC (MIS) as its clearinghouse entity to act as a conduit between participating Alabama municipalities and the Alabama Department of Revenue (ADOR). See the Statute HERE. "
PROBLEMS IN THE MAKING REGARDING, JOINT TAX RETURNS
In the case of a joint tax return, the party where no debt is owed is discriminated against, as such, the party where no debt is owed is also responsible for submitting an appeal. How will the government agency resolve this problem?
Quote: "Code of Alabama 40-18-103(d) In the case of a joint return or a joint refund, the notice shall also state the name of the taxpayer named in the return, if any, against whom no debt is claimed, the fact that a debt is not claimed against such taxpayer, the fact that such taxpayer is entitled to receive a refund if it is due him or her regardless of the debt asserted against his or her spouse, and that in order to obtain a refund due, such taxpayer must apply, in writing, for a hearing with the claimant county or municipality named in the notice within 30 days of the date of the mailing of the notice. If a taxpayer fails to apply in writing for such a hearing within 30 days of the mailing of such notice, the taxpayer will have waived the opportunity to contest the setoff."
There is no description of the appeals process nor the composition of a board, or if a board is necessary, regarding how an appeal will be heard once the appeal process is set in motion.
Video Tutorials on the system - http://alintercept.org/video-tutorials
Click on image for an expanded view.