{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-205.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-205.2","heading":"Claims by state agencies, municipal courts, district","body":"courts, or public housing authorities against state income tax\n\nrefunds.\n\nA. For purposes of this section, a “qualified entity” shall\n\nmean a:\n\n1. State agency;\n\n2. Municipal court;\n\n3. District court;\n\n4. Public housing authority operating pursuant to Section 1062\n\nof Title 63 of the Oklahoma Statutes;\n\n5. District attorney seeking to collect unpaid court-ordered\n\nmonetary obligations; or\n\n6. The designee of an entity described in paragraphs 1 through\n\n5 of this subsection.\n\nB. A qualified entity seeking to collect a debt, unpaid\n\nmunicipal or district court fines and costs or final judgment of at\n\nleast Fifty Dollars ($50.00) from an individual who has filed a\n\nstate income tax return may file a claim with the Oklahoma Tax\n\nCommission requesting that the amount owed to the qualified entity\n\nbe deducted from any state income tax refund due to that individual.\n\nThe claim shall be filed electronically in a form prescribed by the\n\nTax Commission and shall contain information necessary to identify\n\nthe person owing the debt, including the full name and Social\n\nSecurity number of the debtor.\n\n1. Upon receiving a claim from a qualified entity, the Tax\n\nCommission shall deduct the claim amount, plus collection expenses\n\nas provided in this section, from the tax refund due to the debtor\n\nand transfer the amount to the qualified entity. Provided, the Tax\n\nCommission need not report available funds of less than Fifty\n\nDollars ($50.00).\n\n2. The qualified entity shall send notice to the debtor by\n\nregular mail at the last-known address of the debtor as shown by the\n\nrecords of the Tax Commission when seeking to collect a debt not\n\nreduced to final judgment. The qualified entity shall send notice\n\nto the judgment debtor or defendant by first-class mail at the last-\n\nknown address of the judgment debtor or defendant as shown by the\n\nrecords of the Tax Commission when seeking to collect a final\n\njudgment or unpaid court fines and costs. The Tax Commission shall\n\nprovide in an agreed electronic format to the Department of Human\n\nServices the amount withheld by the Tax Commission, the home address\n\nand the Social Security number of the taxpayer. The notice shall\n\nstate:\n\na. that a claim has been filed with the Tax Commission\n\nfor any portion of the tax refund due to the debtor or\n\ndefendant which would satisfy the debt, unpaid court\n\nfines and costs, or final judgment in full or in part,\n\nb. the basis for the claim,\n\nc. that the Tax Commission has deducted an amount from\n\nthe refund and remitted it to such qualified entity,\n\nd. that the debtor or defendant has the right to contest\n\nthe claim by sending a written request to the\n\nqualified entity for a hearing to protest the claim,\n\nand if the debtor or defendant fails to apply for a\n\nhearing within sixty (60) days after the date of the\n\nmailing of the notice, the debtor or defendant shall\n\nbe deemed to have waived his or her opportunity to\n\ncontest the claim. Provided, if the claim was filed\n\nby the Department of Human Services, the notice shall\n\nstate that the debtor must contest the claim by\n\nsending a written request to the Department within\n\nthirty (30) days after the date of the mailing of the\n\nnotice, and\n\ne. that a collection expense of five percent (5%) of the\n\ngross proceeds owed to the qualified entity has been\n\ncharged to the debtor or defendant and withheld from\n\nthe refund.\n\n3. If the qualified entity determines that a refund is due to\n\nthe taxpayer, the qualified entity shall reimburse the amount\n\nclaimed plus the five-percent collection expense to the taxpayer.\n\nThe qualified entity may request reimbursement of the two-percent\n\ncollection expense retained by the Tax Commission. Such request\n\nmust be made within ninety (90) days of reimbursement to the\n\ntaxpayer. If timely requested, the Tax Commission shall make such\n\nreimbursement to the qualified entity within ninety (90) days of the\n\nrequest.\nd plus the five-percent collection expense to the taxpayer.\n\nThe qualified entity may request reimbursement of the two-percent\n\ncollection expense retained by the Tax Commission. Such request\n\nmust be made within ninety (90) days of reimbursement to the\n\ntaxpayer. If timely requested, the Tax Commission shall make such\n\nreimbursement to the qualified entity within ninety (90) days of the\n\nrequest.\n\n4. In the case of a joint return, the notice shall state:\n\na. the name of any taxpayer named in the return against\n\nwhom no debt, no unpaid court fines and costs, or\n\nfinal judgment is claimed,\n\nb. the fact that a debt, unpaid court fines and costs, or\n\nfinal judgment is not claimed against the taxpayer,\n\nc. the fact that the taxpayer is entitled to receive a\n\nrefund if it is due regardless of the debt, court\n\nfines and costs, or final judgment asserted against\n\nthe debtor or defendant,\n\nd. that in order to obtain the refund due, the taxpayer\n\nmust apply, in writing, for a hearing with the\n\nqualified entity named in the notice within sixty (60)\n\ndays after the date of the mailing of the notice.\n\nProvided, if the claim was filed by the Department of\n\nHuman Services, the notice shall state that the\n\ntaxpayer must apply, in writing, for a hearing with\n\nthe Department within thirty (30) days after the date\n\nof the mailing of the notice, and\n\ne. if the taxpayer against whom no debt, no unpaid court\n\nfines and costs, or final judgment is claimed fails to\n\napply in writing for a hearing within sixty (60) days\n\nafter the mailing of the notice, the taxpayer shall\n\nhave waived his or her right to a refund. Provided,\n\nif the claim was filed by the Department of Human\n\nServices, the notice shall state that if the taxpayer\n\nfails to apply in writing for a hearing with the\n\nDepartment within thirty (30) days after the date of\n\nthe mailing of the notice, the taxpayer shall have\n\nwaived his or her right to a refund.\n\nC. If the qualified entity asserting the claim receives a\n\nwritten request for a hearing from the debtor or taxpayer against\n\nwhom no debt, no court fines and costs, or final judgment is\n\nclaimed, the qualified entity shall grant a hearing according to the\n\nprovisions of the Administrative Procedures Act. It shall be\n\ndetermined at the hearing whether the claimed sum is correct or\n\nwhether an adjustment to the claim shall be made. Pending final\n\ndetermination at the hearing of the validity of the debt, unpaid\n\ncourt fines and costs, or final judgment asserted by the qualified\n\nentity, no action shall be taken in furtherance of the collection of\n\nthe debt, unpaid court fines and costs, or final judgment. Appeals\n\nfrom actions taken at the hearing shall be in accordance with the\n\nprovisions of the Administrative Procedures Act.\n\nD. Upon final determination at a hearing, as provided for in\n\nsubsection C of this section, of the amount of the debt, unpaid\n\ncourt fines and costs, or final judgment, or upon failure of the\n\ndebtor or taxpayer against whom no debt, no unpaid court fines and\n\ncosts, or final judgment is claimed to request such a hearing, the\n\nqualified entity shall apply the amount of the claim to the debt\n\nowed. Any amounts held by the qualified entity in excess of the\n\nfinal determination of the debt and collection expense shall be\n\nrefunded by the qualified entity to the taxpayer. However, if the\n\ntax refund due is inadequate to pay the collection expense and debt,\n\nunpaid court fines and costs, or final judgment, the balance due the\n\nqualified entity shall be a continuing debt or final judgment until\n\npaid in full.\n\nE. Upon receipt of a claim as provided in subsection A of this\n\nsection, the Tax Commission shall:\n\n1. Deduct from the refund five percent (5%) of the gross\n\nproceeds owed to the qualified entity, and distribute it by\n\nretaining two percent (2%) and transferring three percent (3%) to\njudgment, the balance due the\n\nqualified entity shall be a continuing debt or final judgment until\n\npaid in full.\n\nE. Upon receipt of a claim as provided in subsection A of this\n\nsection, the Tax Commission shall:\n\n1. Deduct from the refund five percent (5%) of the gross\n\nproceeds owed to the qualified entity, and distribute it by\n\nretaining two percent (2%) and transferring three percent (3%) to\n\nthe qualified entity, as an expense of collection. The two percent\n\n(2%) retained by the Tax Commission shall be deposited in the\n\nOklahoma Tax Commission Fund;\n\n2. Transfer the amount of the claimed debt, unpaid court fines\n\nand costs, or final judgment or so much thereof as is available to\n\nthe qualified entity;\n\n3. Notify the debtor in writing as to how the refund was\n\napplied; and\n\n4. Refund to the debtor any balance remaining after deducting\n\nthe collection expense and debt, unpaid court fines and costs, or\n\nfinal judgment.\n\nF. The Tax Commission shall deduct from any state tax refund\n\ndue to a taxpayer the amount of delinquent state tax and penalty and\n\ninterest thereon, which such taxpayer owes pursuant to any state tax\n\nlaw prior to payment of such refund.\n\nG. The Tax Commission shall have first priority over all other\n\nqualified entities when the Tax Commission is collecting a debt,\n\ncourt fines and costs, or final judgment pursuant to the provisions\n\nof this section. Subsequent to the Tax Commission priority, a claim\n\nfiled by the Department of Human Services for the collection of\n\nchild support and spousal support shall have priority over all other\n\nclaims filed pursuant to this section. Priority in multiple claims\n\nby other qualified entities pursuant to the provisions of this\n\nsection shall be in the order in time in which the Tax Commission\n\nreceives the claim from the qualified entities required by the\n\nprovisions of subsection B of this section.\n\nH. The Tax Commission shall prescribe or approve forms and\n\npromulgate rules and regulations for implementing the provisions of\n\nthis section.\n\nI. The information obtained by a qualified entity from the Tax\n\nCommission pursuant to the provisions of this section shall be used\n\nonly to aid in collection of the debt, unpaid court fines and costs,\n\nor final judgment owed to the qualified entity. Disclosure of the\n\ninformation for any other purpose shall constitute a misdemeanor.\n\nAny employee of a qualified entity or person convicted of violating\n\nthis provision shall be subject to a fine not exceeding One Thousand\n\nDollars ($1,000.00) or imprisonment in the county jail for a term\n\nnot exceeding one (1) year, or both fine and imprisonment and, if\n\nstill employed by the qualified entity, shall be dismissed from\n\nemployment.\n\nJ. The Tax Commission may employ the procedures provided by\n\nthis section in order to collect a debt owed to the Internal Revenue\n\nService if the Internal Revenue Service requires such procedure as a\n\ncondition to providing information to the Commission concerning\n\nfederal income tax.\n\nK. The provisions of this section shall not apply to claims\n\nfiled under the provisions of Section 2906 or Section 5011 of this\n\ntitle or Section 28-101 of Title 70 of the Oklahoma Statutes.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"53e5fea05ab60d0658b7045ee953ac747b5409d08c949f2ef2706a96b12fa630","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-205.1","next":"us-ok/okla.-stat.-tit.-68-68-205.5"},"notice":"GroundRules: Original legal text. Not legal advice."}