{"data":{"id":"us-ky/krs-131.570","jurisdiction":"us-ky","citation":"KRS 131.570","heading":"Debtor to be notified that refund is subject to setoff -- Hearing -- Transfer","body":"of refund -- Payment of excess to taxpayer.\n(1) Upon determining that a pending individual income tax refund is subject to setoff as\nauthorized under this section, the deb tor shall be notified in writing by the\ndepartment of the claim made against such refund by the named claimant agency,\nand of the department's intention to set off the refund against the debt to the\nclaimant agency. The notice shall provide that the debtor , within thirty (30) days\nfrom the date of the notice, may request a hearing before the claimant agency as\nprovided by statute or local ordinance. No issues at such hearing may be considered\nthat have been litigated previously, and the debtor, after being given due notice of\nrights of appeal, must exercise such rights in a timely manner. The decision of the\nclaimant agency shall be subject to appeal as all other decisions rendered by the\nclaimant agency. No funds shall be transferred to a claimant agency un til the\ndebtor's appeal rights have been exhausted.\n(2) Any excess of the pending refund amount over the total claim filed against such\nrefund shall be promptly issued to the taxpayer by the department.\n(3) In the event funds transmitted to a claimant agen cy are subsequently determined by\nthe claimant agency to be in excess of the liquidated debt, such claimant agency\nshall promptly refund the excess to the taxpayer.\n(4) In the event the department erroneously transfers funds to a claimant agency, the\nclaimant agency shall immediately upon notification thereof reimburse the\ndepartment for the amount erroneously transmitted to such agency. The department\nshall promptly refund to the taxpayer the appropriate amount of such returned funds\nwith interest as provided in KRS 131.183(2).","path":["KRS Chapter 131"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=42341","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:22Z","sha256":"8f8c6be79915f01f5afead9d930de69d9f48253c27eea45a9542e08e05263077","source_id":"us-ky","stale":false,"prev":"us-ky/krs-131.565","next":"us-ky/krs-131.575"},"notice":"GroundRules: Original legal text. Not legal advice."}