Ind. Code ch. 6-8.1-9.7

in effect

Ind. Code § 6-8.1-9.7-1 "Debt"

Sec. 1. As used in this chapter, "debt" means a delinquent state tax or nontax debt certified by the treasurer of state or a federal nontax debt certified by a federal official. The term includes, but is not limited to, fines, fees, penalties, and other nontax assessments imposed by or payable to the state or federal government that are finally determined to be due and owing. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-2 "Federal official"

Sec. 2. As used in this chapter, "federal official" means a unit or official of the federal government that: (1) is charged with the collection of nontax liabilities payable to the federal government; and (2) has the authority to make offsets under an offset agreement. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-3 "Offset agreement"

Sec. 3. As used in this chapter, "offset agreement" means an agreement between the office of management and budget and the Secretary of the Treasury of the United States authorized by this chapter. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-4 "Person"

Sec. 4. As used in this chapter, "person" means an individual, vendor, contractor, partnership, society, association, joint stock company, limited liability company, corporation, estate, receiver, trustee, or assignee, any other person acting in a fiduciary or representative capacity whether appointed by a court or otherwise, or any combination of such individuals or entities. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-5 "State payments"

Sec. 5. (a) As used in this chapter, "state payments" includes tax refunds and any vendor or contractor payments made by the state to any person, including expense reimbursements to an employee of the state. (b) The term does not include salary, wages, pension payments, and any other type, class, or amount of payment that the office of management and budget determines has an impact on the health or welfare of the citizens of Indiana and should not be subject to an offset agreement. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-6 "Tax refund"

Sec. 6. As used in this chapter, "tax refund" means an amount described as a refund of tax under the provision of the state tax law that authorized the payment of the refund. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-7 Authorization to enter into an offset agreement

Sec. 7. Notwithstanding any other law, the office of management and budget may enter into an offset agreement with the Secretary of the Treasury of the United States to participate in a reciprocal Treasury Offset Program under 31 U.S.C. 3716 for the collection of any debts owed to the state or to state agencies from federal payments to vendors, contractors, and taxpayers. The offset agreement may provide for the federal government to submit nontax debts owed to federal agencies for offset against state payments otherwise due and owing to taxpayers and to vendors and contractors providing goods or services to the state or to the state's departments, agencies, or institutions. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-8 Powers of a federal official under an offset agreement

Sec. 8. If the office of management and budget enters into an offset agreement, a federal official may do the following as provided in the offset agreement: (1) Certify to the office of management and budget the existence of a person's delinquent nontax debt owed by the person to the federal government, by providing: (A) the full name and address of the person and any other names known to be used by the person; (B) the person's Social Security number or federal tax identification number; (C) the amount of the person's federal nontax debt; (D) a statement certifying that the person's federal nontax debt is past due, that due process has been provided to the person, and that the person's federal nontax debt is legally enforceable in the amount certified, which may be provided in procedures for certifying payments as specified in the offset agreement; and (E) any other information required by the offset agreement. (2) Request the office of management and budget to withhold any state payment to which the person is entitled. (3) Retain a part of the proceeds of any federal administrative setoff authorized by the federal offset program. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-9 Duties and powers of the office of management and budget under an offset agreement

Sec. 9. The following apply if the office of management and budget enters into an offset agreement: (1) The office of management and budget shall do the following as provided in the offset agreement: (A) Determine if a person whose name has been certified by a federal official as provided in the offset agreement is due a state payment. (B) Withhold a state payment that is due a person whose name has been certified by a federal official as provided in the offset agreement. (C) Notify the person from whom a state payment is withheld under this section of the amount withheld in accordance with the offset agreement. (D) Pay to the federal official making the certification under section 8 of this chapter the lesser of: (i) the entire state payment withheld; or (ii) the amount certified by the federal official. If the amount certified by the federal official is less than a state payment due to the person, the office of management and budget shall pay to the person the part of the state payment due to the person that exceeds the certified amount, less any fee under section 10 of this chapter. (2) If an individual filed a joint income tax return and the debt certified by a federal official is not the liability of both parties to the joint income tax return, the office of management and budget may not withhold or pay to the federal official the part of the income tax refund attributable to the individual not owing the debt. The department shall notify taxpayers filing a joint income tax return of a proposed offset of a state income tax refund for a debt certified by a federal official. A taxpayer that filed a joint income tax return and receives such notice may, not more than sixty (60) days after the notice is sent, notify the department in writing that the taxpayer asserts that a part of the income tax refund is attributable to the individual not owing the debt. If a taxpayer that is a party to the joint income tax return does not notify the department of such an assertion not more than sixty (60) days after the department's notice is sent, all of the income tax refund is considered attributable to the individual owing the debt. (3) The office of management and budget may do the following as provided in the offset agreement: (A) Certify to a federal official a person's delinquent debt owed to the state by providing the federal official: (i) the full name and address of the person and any other names known to be used by the person; (ii) the person's Social Security number or federal tax identification number; (iii) the amount of the person's debt owed to the state; (iv) a statement certifying that the person's debt is past due, that due process has been provided to the person, and that the person's debt is legally enforceable in the amount certified, which may be provided in procedures for certifying payments as specified in the offset agreement; and (v) any other information required by state law or rules applicable to the collection of the debt by offset of federal payments or required by the offset agreement. (B) Request that the federal official withhold from any federal payment to which the person is entitled the lesser of: (i) the entire federal payment; or (ii) the amount certified by the office of management and budget; as provided in the offset agreement. If the amount certified by the office of management and budget is less than a federal payment due to the person, the federal official may pay to the person the part of the federal payment due to the person that exceeds the certified amount, less any fee under section 10 of this chapter. As added by P.L.293-2013(ts), SEC.33.

Ind. Code § 6-8.1-9.7-10 Authorization to establish a reasonable administrative fee

Sec. 10. (a) The office of management and budget may, by rule, establish a reasonable administrative fee to be charged to a person for the provision of the state offset of a federal debt or the federal offset of a state debt. (b) A fee authorized by this section is a separate debt and may be withheld from any refund, reimbursement, or other money held for the person. (c) The office of management and budget may charge the person who is the subject of the state offset of a federal debt or the federal offset of a state debt the fee authorized by this section. (d) Any fees collected under this section may be retained by the office of management and budget and used for the costs of the intercept program, including reporting, and for costs associated with other revenue generation and cost savings initiatives as determined by the office of management and budget. As added by P.L.293-2013(ts), SEC.33.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026