                                 CODE OF VIRGINIA

NOTIFICATION OF INTENTION TO SET OFF AND RIGHT TO HEARING (§ 58.1-525)

A. The claimant agency, upon receipt of notification from the Department that a
debtor is entitled to a refund, within ten days shall mail a written
notification to the debtor at his or her last known address and shall send
evidence of same in the manner required by rules promulgated by the Tax
Commissioner to the Department of its assertion of rights to the refund or any
part thereof. The notification shall inform the debtor of the claimant
agency&#8217;s intention to direct the Department to apply the refund or any
portion thereof against the debt certified as due and owing.

B. The contents of the written notification to the debtor and the
Department&#8217;s notification of the setoff claim shall clearly set forth the
basis for the claim to the refund, the intention to apply the refund against the
debt to the claimant agency, the debtor&#8217;s opportunity to give written
notice of intent to contest the validity of the claim before the claimant agency
within thirty days of the date of the mailing of the notice, the mailing address
to which the application for a hearing must be sent, and the fact that failure
to apply for a hearing in writing within the thirty-day period will be deemed a
waiver of the opportunity to contest the claim causing final setoff by default.

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

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