(a) When a taxpayer who is a debtor as defined in this subchapter has filed a joint return for which he or she is due a refund or has filed a separate return on the same form resulting in a joint refund, the entire amount of the refund shall be subject to setoff.

(b)

(1) The Director of the Department of Finance and Administration shall notify each taxpayer due a joint refund of the amount and the date of a proposed setoff for a debt certified by a claimant agency to the Revenue Division of the Department of Finance and Administration.

(2) The notice under subdivision (b)(1) of this section shall be in writing and sent to the address listed on the taxpayer's most recently filed income tax return.

(c) (1) (A) A taxpayer who claims that he or she is not a debtor of a claimant agency may seek administrative relief by filing a written protest under oath within thirty (30) days after the notice under subdivision (b)(1) of this section is received.

(B) The written protest shall be signed by the nondebtor taxpayer or the nondebtor taxpayer's authorized agent and include the nondebtor taxpayer's reasons for opposing the proposed setoff.

(2) The nondebtor taxpayer may request the director to consider his or her request for relief upon written documents furnished by the nondebtor taxpayer or upon the written document and the evidence produced by the nondebtor taxpayer at a hearing conducted under the Arkansas Tax Procedure Act, § 26-18-101 et seq.

(3) The nondebtor taxpayer's protest shall include documentation supporting the proportionate share of the nondebtor taxpayer's payment of tax and the resulting amount of the joint refund that the nondebtor taxpayer claims is not subject to setoff.

(d) A nondebtor taxpayer who requests the director to render his or her decision based on written documents is not entitled by law to any other administrative hearing before the director's rendering of his or her decision.

(e) Administrative relief shall not be available to a nondebtor taxpayer who fails to protest a proposed setoff within the thirty (30) days after the notice under subdivision (b)(1) of this section is received.

(f)

(1) If a taxpayer requests a hearing in person rather than on written documents, a hearing officer shall set the time and place for hearing on the written protest and shall give the nondebtor taxpayer reasonable notice of the hearing.

(2) At the hearing, the nondebtor taxpayer may be represented by an authorized representative and may present evidence in support of his or her position.

(3) After the hearing, the hearing officer shall render his or her decision in writing and shall serve copies upon both the nondebtor taxpayer and the claimant agency.

(g) The hearings on written protests and determinations made by the hearing officer are not subject to the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

(h)

(1) After the issuance and service on the taxpayer of a decision of the hearing officer to sustain the setoff of the joint refund, a nondebtor taxpayer may seek judicial relief from the decision by filing suit within thirty (30) days after the date of the final determination of the hearing officer.

(2) Jurisdiction for a suit to contest a determination of the hearing officer under this section shall be in the Pulaski County Circuit Court or the circuit court of the county where the nondebtor taxpayer resides, and the matter shall be tried de novo.

(i) This section is the sole means by which a nondebtor taxpayer may challenge a proposed setoff for the benefit of a claimant agency.