Maryland Notice of Intent to Offset Refund Checklist
A Notice of Intent to Offset Refund from the Comptroller of Maryland tells you that the state plans to use your future state income tax refund to pay a debt you owe to Maryland or another agency. This notice matters because it directly affects the money you might otherwise receive back, and it represents an active collection step by the state.
The state sends this notice to give you time to respond, understand your options, and prevent the offset from happening if you believe it is incorrect. Receiving this notice does not mean your refund has already been taken—it means you have a window of time to act, and understanding what comes next will help you feel more in control of the situation.
What This Notice Means
The Maryland Notice of Intent to Offset Refund tells you that Maryland has identified a debt in your name and has decided to intercept any state income tax refund you receive to pay that debt. Maryland is not taking action yet—it is announcing its plan to do so and giving you a chance to respond.
Why the State Sent This Notice
Maryland sends this notice when it has identified a debt owed to Maryland or another state agency and has decided that offset is the appropriate collection method. Common reasons include unpaid state income taxes, unpaid unemployment insurance contributions, unpaid child support, overpayment of benefits like unemployment or SNAP, or debts owed to another state.
Under Maryland Tax-General Code Section 13-914, the Central Collection Unit must send this notice at least thirty calendar days before certifying a debt to the Comptroller. Your notice must advise you of the amount due, the basis of the debt, the opportunity to request an investigation, the opportunity to contest adverse determinations in a hearing, and the right to judicial appeal.
What Happens If You Ignore This Notice
If you do not respond to the Notice of Intent to Offset Refund, the Central Collection Unit will typically proceed with certifying the debt to the Comptroller. The Comptroller will then intercept your state income tax refund when you file your next Maryland state tax return or if you receive a refund through another state program.
What This Notice Does Not Mean
This notice does not mean your refund has already been taken or that the state has frozen your bank account. It does not mean you are being prosecuted or that criminal action is being taken against you.
Checklist: What to Do After Receiving This Notice
Step 1: Read the notice carefully and gather the details
Locate the specific debt amount, the reason for the debt, the state agency or creditor involved, and any deadlines mentioned. Write down all of these details and check whether the notice includes a phone number or mailing address for the Central Collection Unit.
Step 2: Verify that you actually owe this debt
Review your own records to see if you remember owing money to Maryland or another state agency for this reason. If you filed taxes, check whether you received a notice of tax assessment or unpaid tax from a prior year.
Step 3: Gather documentation related to the debt
Collect any written notices, bills, or letters you received about this debt before receiving the offset notice. Find your prior-year tax returns and any correspondence from the Comptroller of Maryland if the debt is tax-related.
Step 4: Contact the Central Collection Unit
Call the phone number on the notice or visit the Debtor Portal listed. Identify yourself and provide the notice number or case number from your letter, then ask these questions:
● Ask what the exact debt amount is.
● Ask what the debt is for and what date it was created.
● Ask whether they have documentation of this debt in their file.
● Ask what your deadline is to request an investigation.
Step 5: Request an investigation if you question the debt
Under Maryland Tax-General Code Section 13-916, you may request the Central Collection Unit to investigate a debt after receiving the Notice of Intent to Withhold. The Central Collection Unit’s notice states that an investigation must be requested in writing within fifteen days of the notice date. Ask for the formal investigation process and any forms required, then follow the instructions exactly and keep copies of everything you send.
Step 6: Request a hearing if you receive an adverse determination
Following an investigation, if the Central Collection Unit issues an adverse determination, you have thirty days from the date of that determination to request a hearing. Your hearing request must be submitted in writing under Maryland Tax-General Code Section 13-917.
Step 7: Explore payment options if you owe the debt
Once you confirm you owe the debt and cannot dispute it, ask the Central Collection Unit about payment arrangements or whether any portion can be reduced. The Comptroller of Maryland offers low-income taxpayer programs, including hardship relief and an offer in compromise program for taxpayers unable to pay in full.
Step 8: Request confirmation in writing
If you reach a payment agreement or if the Central Collection Unit agrees to discontinue certification procedures, request a letter confirming the agreement and the payment schedule. Do not rely on a phone conversation alone.
Step 9: Consider injured spouse relief if you filed jointly
If you filed a joint Maryland tax return and your share of the refund is being used to offset your spouse’s debts, you may file Maryland Form 502INJ with your Maryland tax return. This form allows you to allocate income, deductions, and tax payments between you and your spouse to receive your rightful portion of the refund.
Step 10: Keep records of all communications
After each call or letter, write down the date, the person’s name and title, and what was discussed. If you make a payment, keep the receipt or confirmation number.
Common Mistakes to Avoid
Avoid ignoring the notice or missing the deadline to request an investigation without knowing what the deadline is. Do not send payment or investigation requests to the Comptroller of Maryland without first confirming which agency actually holds the debt. Never assume the debt is yours without verifying it, or assume the debt is not yours without checking your records carefully.
Frequently Asked Questions
How long do I have to respond to this notice?
The Central Collection Unit’s notice typically states that an investigation must be requested in writing within fifteen days of the notice date. After receiving an adverse determination following investigation, you have thirty days from that determination to request a hearing.
What if I already paid this debt?
Contact the Central Collection Unit immediately with proof of payment if you have documentation that you paid the debt. Provide the canceled check, receipt, or confirmation number, then ask them to confirm the debt has been satisfied and to withdraw the offset certification.
Can I appeal this notice if I disagree with it?
You first request an investigation from the Central Collection Unit. Following an adverse determination from the investigation, you may request a hearing within thirty days. After a final decision, you may appeal to court as provided for contested cases under the Maryland Administrative Procedure Act.
Receiving a Notice of Intent to Offset Refund is stressful, but it is not a crisis, and it is not a surprise seizure of your money. The notice gives you time and opportunity to respond, verify the debt, and explore your options before the Comptroller of Maryland intercepts your refund.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
