42.10.506    DEBTOR APPEALS ON DEPARTMENT'S COLLECTIONS

(1) The department shall notify the debtor when it identifies funds that may be subject to offset. The notice of offset shall identify the debt and funds held and inform the debtor that the department will hold the funds for 30 days pending receipt of an objection. The notice shall also provide the department's contact information, including phone number and mailing address, and the debtor's appeal rights, as provided in (2) through (4).

(2) To object to the potential offset of funds held, the debtor must submit a written request stating the basis of their 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 offset. If the debtor fails to timely submit a written objection, the department will apply the held funds to the debt. 

(3) The department shall review the objection and shall mail written notice to the debtor advising them 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 release the held funds to the debtor. 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. If the debtor fails to timely submit a written objection, the department will apply the held funds to the debt. 

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

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.