42.10.505    DEBTOR APPEALS ON VALIDITY OF TRANSFER OF DEBT

(1) The department shall notify a debtor that another agency has transferred a debt to the department for collection services. The notice of transfer shall identify the debt and provide:

(a) a statement that the department intends to undertake collection activities;

(b) payment information;

(c) the department's contact information, including phone number and mailing address; and

(d) the debtor's appeal rights as set forth in (2) through (4).

(2) To object to the transfer of the debt from the agency to the department, the debtor must submit a written request stating the basis of the debtor's objection within 30 days of the date on the notice of transfer. Written objections may be submitted on Form CB-1, by letter sent through U.S. mail or other generally accepted delivery service, or as electronic mail to the department's email address provided on the notice of transfer. The objection must be postmarked or electronically date stamped within 30 days of the date on the notice of transfer. Failure to timely submit a written objection shall be deemed an admission that the debtor agrees that the debt stated in the notice of transfer is due and owing. 

(3) The department shall review the objection and shall mail written notice to the debtor advising the debtor of the department's determination within 30 days after receipt of the objection. If the department concurs with the debtor's objection, the department will return the debt to the submitting agency. If the department disagrees with the debtor, the department shall explain the reasons for the disagreement, notify the debtor that the department's determination may be appealed to the Office of Dispute Resolution, and provide a copy of Form CB-2. The department shall also notify the debtor that the debtor must submit a Form CB-2 or other written objection to the department within 30 days of the date on the department's determination, and that the debtor will forfeit the right to a hearing if the debtor fails to submit Form CB-2 or other written objection within the 30-day period.

(4) If the debtor disagrees with the department's determination, the debtor must submit a Form CB-2 or other written objection within 30 days of the date on the department's determination to request a hearing before the Office of Dispute Resolution. Objections should be mailed to the Department of Revenue, Office of Dispute Resolution, P.O. Box 5805, Helena, Montana 59604 or e-mailed to [email protected]. The objection must be postmarked or electronically date stamped within 30 days of the date on the department's determination. Failure of the debtor to file a timely appeal shall be deemed an admission that the debtor agrees that the debt stated in the notice of transfer is due and owing. 

(5) Deadlines may be extended if both parties agree. 

(6) Hearings conducted pursuant to this rule are limited to whether the transfer of the debt from the agency to the department was valid. The department shall not make any determination regarding the validity of the underlying debt. If the debtor's objection to the debt transfer includes a challenge to the validity of the underlying debt, the department may return the debt to the submitting agency. The debtor is not entitled to a hearing on the validity of the debt if the debt has been the subject matter of any proceeding to determine the validity of the debt and a decision made as a result of that proceeding has become final.

 

History: 15-1-201, 17-4-110, MCA; IMP, 15-1-211, 17-4-105, MCA; NEW, 2014 MAR p. 229, Eff. 1/31/14; AMD, 2021 MAR p. 1963, Eff. 12/24/21.