58.1-525 - Notification of intention to set off and right to hearing.

§ 58.1-525. Notification of intention to set off and right to hearing.

A. The claimant agency, upon receipt of notification from the Department thata debtor is entitled to a refund, within ten days shall mail a writtennotification to the debtor at his or her last known address and shall sendevidence of same in the manner required by rules promulgated by the TaxCommissioner to the Department of its assertion of rights to the refund orany part thereof. The notification shall inform the debtor of the claimantagency's intention to direct the Department to apply the refund or anyportion thereof against the debt certified as due and owing.

B. The contents of the written notification to the debtor and theDepartment's notification of the setoff claim shall clearly set forth thebasis for the claim to the refund, the intention to apply the refund againstthe debt to the claimant agency, the debtor's opportunity to give writtennotice of intent to contest the validity of the claim before the claimantagency within thirty days of the date of the mailing of the notice, themailing address to which the application for a hearing must be sent, and thefact that failure to apply for a hearing in writing within the thirty-dayperiod will be deemed a waiver of the opportunity to contest the claimcausing final setoff by default.

C. The written application by the debtor for a hearing shall be effectiveupon mailing the application postage prepaid and properly addressed to theclaimant agency.

(Code 1950, § 58-19.12; 1981, c. 408; 1982, c. 621; 1984, c. 675; 1986, c.322; 1996, cc. 363, 413.)