A claim for refund may be filed with the tax collector who collects the tax, fee, or charge by a claimant who: erroneously pays to the State a greater amount of tax, fee, charge, interest, or penalty than is properly and legally payable; pays to the State a tax, fee, charge, interest, or penalty that is erroneously, illegally, or wrongfully assessed or collected in any manner; or pays a tax qualifying for refund under subsections (b) through (h) of this section. A claim for refund of alcoholic beverage tax may be filed by a claimant who: buys alcoholic beverages that are exempt under § 5–104(b) of this article; discontinues an alcoholic beverage business; discontinues the sale and delivery in the State of alcoholic beverages in certain container sizes; or holds alcoholic beverages for sale that: are condemned by an authorized official; or if the claim is $250 or more, are lost, rendered unmarketable, or destroyed in the State due to fire, flood, or other disaster, or due to vandalism or malicious mischief, except loss due to theft. A claim for refund of income tax may be filed by a claimant whose Maryland taxable income is decreased as a result of a federal contract renegotiation under § 1481 of the Internal Revenue Code. A claim for refund of income tax under this subsection or subsection (a) of this section may be filed: by the claimant; or on behalf of the claimant, by a person allowed to file a return under § 10–808 of this article. A claim for refund of Maryland estate tax or Maryland generation–skipping transfer tax may be filed by a claimant required to pay the tax if: the Maryland estate tax is decreased as a result of: a decrease in the federal estate tax on the estate; or an inheritance tax payment made after a Maryland estate tax payment; or the Maryland generation–skipping transfer tax is decreased as a result of a decrease in the federal generation–skipping transfer tax on the generation–skipping transfer. A claim for refund of motor carrier tax may be filed by a claimant who has excess motor carrier tax credit, if: the claimant has provided the security required for a motor carrier under § 13–825 of this title; or the Comptroller has audited the records of the claimant. Except as provided in paragraph (3) of this subsection, a claim for refund of motor fuel tax may be filed by a claimant who pays the tax on: aviation fuel, as defined in § 9–101 of this article, that is: dispensed to aircraft by an aircraft manufacturing company located in the State; or used: by a person who engages in agricultural activities; and in an aircraft that is used for agricultural purposes at least 70% of the time that the aircraft is used; or motor fuel, as defined in § 9–101 of this article, that: is used to operate: a bus that is used only in the operation of a transportation system of a political subdivision of the State to transport the public on regular schedules between fixed termini, as defined in Title 11 of the Transportation Article; farm equipment that is used for an agricultural purpose and is not registered to operate on a public highway; fire or rescue apparatus or vehicles by a volunteer fire company or nonprofit volunteer rescue company incorporated in the State; an internal combustion engine that is installed permanently at a fixed location; a vehicle that is owned and used by a Maryland chapter of the American Red Cross or a bona fide unit of a national veterans’ organization; or a vehicle that is used only in the operation of a transportation system of a political subdivision of the State to transport the public on demand response trips; is bought by: the United States or a unit of the United States government; the Department of General Services for use by State agencies; a county board of education for use in a school bus owned by a county board of education; a school bus operator under contract with a county board of education for use in a school bus used to transport the county’s public school students; or a person who is required to pay a tax on the same fuel to another state; except for any operation of a motor vehicle on a public highway in the State, is used for a commercial purpose, including: the operation of a vessel used only for commercial purposes; commercial cleaning; or commercial dyeing; is used in any of the following vehicles that have pumping or other equipment mechanically or hydraulically driven by the engine that propels the vehicle: a concrete mixing motor vehicle or concrete pump truck; a motor fuel delivery vehicle; a solid waste compacting vehicle; a well–drilling vehicle; or farm equipment registered as a vehicle for highway use that is designed or adapted solely and used exclusively for bulk farm spreading of agriculture liming materials, chemicals, or fertilizer; is used by a system of transportation based in the State, in a vehicle that is used to provide transportation to elderly or low income individuals, or individuals with disabilities, if the system is operated by a nonprofit organization for purposes relating to the charge for which the nonprofit organization was established and the nonprofit organization: is exempt for federal income tax purposes under § 501(c) of the Internal Revenue Code; is funded to provide transportation to elderly or low income individuals, or individuals with disabilities; receives part of its operating funding from the Maryland Department of Transportation or the Maryland Department of Health; has stated in its charter or bylaws that operating transportation services for elderly or low income individuals, or individuals with disabilities, is one of the purposes for which it was established; and is actively operating a system of transportation for elderly or low income individuals, or individuals with disabilities; or is lost as a result of fire, collision, or other casualty, except for loss in ordinary transportation and storage. A refund based on a claim under paragraph (1)(ii)4 of this subsection may not exceed the following percentages of the motor fuel tax paid: 35% for a concrete mixing vehicle or concrete pump truck; 55% for farm equipment, registered as a vehicle for highway use, that is designed or adapted solely and used exclusively for bulk spreading of agriculture liming materials, chemicals, or fertilizers; 10% for a motor fuel delivery vehicle; 15% for a solid waste compacting vehicle; and 80% for a well–drilling vehicle. A person may not make a claim for a refund of motor fuel tax under paragraph (1)(ii)1B of this subsection for motor fuel used to operate a farm truck under the provisions of § 8–602(c) of the Transportation Article. A claim for refund of sales and use tax may be filed by a claimant who: pays the tax on a sale exempt under § 11–216 of this article; refunds the tax to a buyer in a canceled or rescinded sale under § 11–403(c) or § 11–403.1(c) of this article; pays the tax in a canceled or rescinded sale for which the vendor or marketplace facilitator refuses to refund the tax as required under § 11–403(c) or § 11–403.1(c) of this article; or pays the tax under § 11–408(c) of this article on a cash sale or sale for use that is not a retail sale. A claim for refund of tobacco tax may be filed by a claimant who buys tobacco tax stamps that: are affixed erroneously to anything other than a package of cigarettes; are affixed to a package of unsalable cigarettes; are canceled by the Comptroller; if the claim is $250 or more, are lost or destroyed in the State due to fire, flood, or other disaster, vandalism, or malicious mischief; mutilated or damaged, whether or not affixed to a package of cigarettes; or subject to paragraph (2) of this subsection, are lost due to theft. A claimant may receive a refund for tobacco tax stamps lost due to theft by providing to the Comptroller: a copy of the police report with a detailed inventory of the stolen property, including when the property was ordered, loaded onto the truck, and stamped; and a notarized affidavit signed by the claimant under penalty of perjury attesting to the truth of the information provided in the claim for a refund. If the stolen property is recovered, the claimant shall notify the Comptroller and return any refund received under this paragraph. In addition to other penalties authorized by law, a claimant is subject to a fine of double the amount of any tax refund received under this paragraph for making a false claim. The Comptroller may adopt regulations to carry out this paragraph.

A claim for refund shall be: made, under oath, in the form that the tax collector requires; and supported by the documents that the tax collector requires, including original invoices showing alcoholic beverage and motor fuel purchases.

A claim for refund shall be filed within the time required under § 13-1104 of this title.

The tax collector shall: investigate each claim for refund; and conduct a hearing at the request of the claimant prior to a final determination on the claim. The tax collector shall give the claimant notice of: the determination of the claim for refund; and any delay in paying an allowed claim.

Subject to the additional provisions under this section, a tax collector shall pay any claim for refund that has been allowed by the tax collector unless: the claimant has not paid all other taxes, fees, or charges payable to the State; or the amount of the refund due is less than $1. If a claim for refund of income tax is based on a return that is filed jointly by the personal representative and surviving spouse of a decedent, the Comptroller shall pay the claim to the estate of the decedent. The payment of income tax refunds is subject to tax refund interception under § 10–113 of the Family Law Article and §§ 13–912 through 13–919 of this subtitle. The Comptroller may not pay a refund of excess motor carrier tax credit unless the motor carrier has complied with Title 9, Subtitle 2 of this article and regulations adopted under it for a full registration year and the Comptroller, in the Comptroller’s discretion, allows the refund. For a claim of refund for sales and use tax, the Comptroller shall either: pay the refund; or allow a credit of the amount of the refund on subsequent sales and use tax payments due from the claimant. If requested by a claimant on a form provided by the Comptroller, the Comptroller shall directly deposit portions of an income tax refund into at least two accounts at one or more financial institutions.

In this section, “register” means the register of wills of a county. If a person is required to pay inheritance tax the payment of which would reduce the Maryland estate tax imposed on an estate and would entitle the estate to a Maryland estate tax refund, on the written request of the personal representative of the estate, the Comptroller may pay directly to the register, to be applied against the inheritance tax, any Maryland estate tax refund to which the estate would be entitled as a result of the payment of the inheritance tax. If a person becomes entitled to an inheritance tax refund the payment of which would result in an increase in the Maryland estate tax imposed on an estate, on the written request of the person making a claim for the inheritance tax refund or if a claim for an inheritance tax refund has not been made, the register may pay the inheritance tax refund directly to the Comptroller to be applied against any unpaid Maryland estate tax or additional Maryland estate tax that would become due as a result of the inheritance tax refund. If a payment from the Comptroller to the register or from the register to the Comptroller under subsection (b) of this section does not discharge a person’s tax liability in its entirety, the person shall pay any remaining unpaid inheritance tax to the register or any remaining unpaid Maryland estate tax to the Comptroller. Payment by the Comptroller to the register or by the register to the Comptroller under subsection (b) of this section shall satisfy the obligation of the register or Comptroller to pay a refund to the extent of the payment.

If the tax collector determines that collection of financial institution franchise tax or income tax is not warranted because of the administration and collection costs involved, the tax collector may abate the tax or any interest, penalties or charges relative to the tax. In this subsection, “public health emergency” includes: a national emergency declared by the President of the United States under the National Emergencies Act; an emergency or major disaster declared by the President of the United States under the Robert T. Stafford Disaster Relief and Emergency Assistance Act; a public health emergency declared by the Secretary of Health and Human Services under 42 U.S.C. § 247d; and a catastrophic health emergency declared by the Governor under § 14–3A–02 of the Public Safety Article. The income tax imposed under this article shall be abated in the case of any individual: who dies while in active service as a member of the uniformed services, if such death occurs while serving in a combat zone or a public health emergency response area or as a result of wounds, disease, or injury incurred while so serving; or who dies while a member of the uniformed services or civilian employee of the United States, if such death occurs as a result of wounds, disease, or injury incurred while the individual was a member of the uniformed services or civilian employee of the United States and which were incurred outside the United States in a public health emergency response or a terroristic or military action. The abatement of tax shall have the same effect and shall apply to the same taxable years as provided under § 692 of the Internal Revenue Code.

Without regard to the provisions of § 13-1104 of this title, if the tax collector determines a person’s financial institution franchise tax or income tax for multiple taxable years and simultaneously finds both overpayments and deficiencies in those taxable years, the tax collector: may offset the deficiencies to the extent of the overpayments; but may not allow a refund that is barred under Subtitle 11 of this title. An overpayment determined under subsection (a) of this section may not be applied as an offset to a deficiency in any taxable year other than the years included in the Comptroller’s determination under subsection (a) of this section.

In this part the following words have the meanings indicated. “Central Collection Unit” means the Central Collection Unit in the Department of Budget and Management. “Debt” means: a liquidated sum due and owing any State agency that has accrued through contract, subrogation, tort, operation of law, or other cause of action, regardless of whether there is an outstanding judgment for that sum; or a delinquent restitution account on a judgment of restitution referred to the Central Collection Unit for collection under § 11–616 of the Criminal Procedure Article. “Debt” includes converted funds as defined in § 15–122.2 of the Health – General Article. “Debtor” means: a person owing a debt to a State agency that has not been adjudged satisfied by court order, set aside by court order, or discharged in bankruptcy; or a defendant or liable parent in arrears of restitution payments whose account has been referred to the Central Collection Unit under § 11-616 of the Criminal Procedure Article. “State agency” means any agency, association, board, bureau, college, commission, committee, council, foundation, fund, department, institute, institution, public corporation, service, trust, university, or other unit of State government, including any subunit of these agencies.

Except as provided in paragraph (2) of this subsection, for any debt not excepted by law from the Central Collection Unit’s responsibilities under Title 3, Subtitle 3 of the State Finance and Procurement Article or otherwise, the Central Collection Unit may: certify to the Comptroller the existence of any debt that has been referred to it for collection by a State agency; and request the Comptroller to withhold the sum certified from any income tax refund to which a debtor is entitled. A debt may not be withheld if the State agency or the Central Collection Unit has been advised by the Attorney General that the validity of the debt is legitimately in dispute or an alternate means of collection is pending and believed to be adequate. The Department of Budget and Management shall establish by regulation those classes or categories of debts, including any minimum debt amount, that may be referred to the Central Collection Unit for withholding. Subject to § 13-918 of this subtitle, if more than one State agency is owed money by the same debtor, any amount withheld from an income tax refund shall be applied in the order of referral of the debt by the State agencies. Subject to paragraph (2) of this subsection, the withholding of debt from an income tax refund authorized by this part does not preclude use of any other remedy provided by law for the collection of debts owed to the State and this part shall be liberally construed to effectuate its purposes. This part shall be interpreted in a manner that does not deprive a debtor of any rights or defenses that would be available to that debtor in defending against a claim of setoff incident to a judicial proceeding.

At least 30 calendar days before certifying a debt to the Comptroller, the Central Collection Unit shall notify the debtor in writing that it intends to request the Comptroller to withhold the debt from any income tax refund due the debtor. The notice required under subsection (a) of this section shall advise the debtor of: the amount due and owing; the basis of the debt; the opportunity to request an investigation of the debt; the opportunity to contest any adverse determination after an investigation in a hearing before the Central Collection Unit; and the right to a judicial appeal of a final action by the Central Collection Unit.

A certification by the Central Collection Unit to the Comptroller shall be made on or before January 1 of each calendar year in the form that the Comptroller prescribes. The certification shall include: the full name and address of the debtor and any other names known to be used by the debtor; the Social Security number or federal tax identification number of the debtor; and the amount of the debt. The Comptroller shall: withhold any income tax refund that may be due to a debtor whose name has been certified by the Central Collection Unit; and pay to the Central Collection Unit the entire refund or the amount certified by the Central Collection Unit, whichever is less. All money paid to the Central Collection Unit by the Comptroller under this part shall be disposed of by the Central Collection Unit as provided in § 3–305 of the State Finance and Procurement Article. Any income tax refund in excess of the certified amount shall be paid to the debtor. The Comptroller shall notify the debtor of: any amount paid to the Central Collection Unit; and the debtor’s right: to request an investigation by the Central Collection Unit of the validity of the debt or correctness of the amount; and to an administrative hearing and judicial appeal if the Central Collection Unit makes a determination adverse to the debtor. If a debtor has filed a joint income tax return and the debt is not the liability of both taxpayers, the Comptroller may not withhold that portion of an income tax refund attributable to the individual not owing the debt. After receiving certification of a debt from the Central Collection Unit, the Comptroller shall promptly notify the Central Collection Unit if the Comptroller determines that a withholding cannot be made. If an income tax refund is insufficient to satisfy a debt, the Comptroller may withhold amounts from subsequent income tax refunds due a debtor until the debt is extinguished. Partial payments of the debt shall first be applied against accrued interest, if any, and then to the principal amount of the debt. Interest on a debt may be withheld at the rate established for that debt by law or contract. Except for the amount of any income tax refund to which a debtor is entitled, the Comptroller may not disclose any item contained on a State or federal tax return or information required by State law to be attached to the State return.

A debtor may request the Central Collection Unit to investigate a debt: after notification from the Central Collection Unit under § 13-914 of this subtitle that the Central Collection Unit intends to request the Comptroller to withhold the debt from any income tax refund due the debtor; or within 30 days after notification from the Comptroller under § 13-915 of this subtitle that a debt has been withheld. On receipt of a request for an investigation, the Central Collection Unit shall investigate any questioned debt with the State agency that referred the debt. The Central Collection Unit shall make a written determination within 15 calendar days after it receives a request for investigation from the debtor. If the Central Collection Unit determines that a referral or certification is in error, it shall, as appropriate: correct the referral or certification; discontinue certification procedures; or promptly remit to the debtor any amounts that have been improperly withheld.

After its investigation, if the Central Collection Unit makes a determination adverse to the debtor, it shall promptly advise the debtor of the debtor’s right to request a hearing on unresolved factual issues before the Central Collection Unit in accordance with the Administrative Procedure Act. Except for good cause shown, a request for a hearing before the Central Collection Unit must be made within 30 days after the date of notification of the debtor of an adverse determination by the Central Collection Unit following an investigation. The State agency that referred the debt to the Central Collection Unit may be made a party in any hearing before the Central Collection Unit. An issue may not be considered at the hearing that has been previously litigated. Within 15 days after receipt of a timely or otherwise proper request for a hearing under this subsection, the debtor shall be notified of the date of the hearing. After a hearing, if the Central Collection Unit determines that a certification or referral is in error, it shall take appropriate action as described in § 13-916(b)(3) of this subtitle. A determination by the Central Collection Unit of the validity of the debt or correctness of the amount owed shall be considered as final agency action under the Administrative Procedure Act. A debtor aggrieved by a final decision of the Central Collection Unit concerning the validity of the debt or correctness of the amount may appeal the decision as provided for contested cases in §§ 10-222 and 10-223 of the State Government Article. If a debtor disputes a denial by the Comptroller of a claim for an income tax refund on grounds other than the validity of the debt or the correctness of the amount owed and that debtor also is appealing an adverse determination of the Maryland Tax Court under § 13-532 of this title, judicial review of both decisions shall be consolidated.

The Comptroller shall honor income tax refund interception requests in the following order: a refund interception request to collect an unpaid State, county, or municipal tax; a refund interception request under Title 10, Subtitle 1, Part II of the Family Law Article; a refund interception request for converted funds under § 15–122.2 of the Health – General Article; a refund interception request under § 3–304 of the State Finance and Procurement Article; any other refund interception request by the State, county, or other political subdivision of the State; a request for intercept made by a taxing official under Part IV of this subtitle; and a request for intercept made by a federal official under Part VI of this subtitle. The Comptroller shall honor vendor payment interception requests in the same order of priority provided in subsection (a) of this section for honoring income tax refund interception requests.

The Secretary of Budget and Management may adopt regulations relating to the referral of debts by State agencies to the Central Collection Unit and to the administrative procedures authorized under this part. The Comptroller may adopt regulations relating to the certification and withholding of amounts under this part.

In this part the following words have the meanings indicated. “Refund” means an individual’s Maryland income tax refund or any other state’s individual income tax refund. “Taxing official” means a unit or official of another state charged with the imposition, assessment, or collection of state income taxes.

Except as provided in subsection (b) of this section, a taxing official may: certify to the Comptroller the existence of an individual’s delinquent income tax liability; and request the Comptroller to withhold any refund to which the individual is entitled. A taxing official may not certify or request the Comptroller to withhold a refund unless the laws of the taxing official’s state: allow the Comptroller to certify an income tax due; allow the Comptroller to request the taxing official to withhold the individual’s tax refund; and provide for the payment of the refund to Maryland. The withholding of a refund shall be subject to the priorities under § 13-918 of this subtitle.

A certification by a taxing official to the Comptroller shall include: the full name and address of the individual and any other names known to be used by the individual; the Social Security number or federal tax identification number; the amount of the income tax liability including a detailed statement for each taxable year showing tax, interest, and penalty; and a statement that all administrative remedies and appeals have been exhausted and that the assessment of tax, interest, and penalty has become final. The Comptroller shall determine if an individual for whom a certification is received is due a refund of Maryland income tax. As to any individual due a refund, the Comptroller shall: notify the individual of a certification by another state of the existence of an income tax liability; provide the individual with notice of an opportunity to request a hearing to challenge the certification; and inform the individual that the hearing may be requested: pursuant to § 13-508 of this title; or with the taxing official, in accordance with the laws of the state of the taxing official. If the individual requests a hearing pursuant to § 13-508 of this title, the certification of the taxing official shall be prima facie evidence of the correctness of the individual’s delinquent income tax liability to the certifying state. Subject to subsection (f) of this section, the Comptroller may: withhold any income tax refund that is due to an individual whose name has been certified by a taxing official; pay to the other state the entire refund or the amount certified, whichever is less; pay any income tax refund in excess of the certified amount to the individual; and if an income tax refund is less than the certified amount, withhold amounts from subsequent income tax refunds due the individual, if the laws of the other state provide that the other state shall withhold subsequent refunds of individuals certified to that state by the Comptroller. The Comptroller may not withhold or pay to another state an individual’s income tax refund until all administrative and judicial remedies provided under Subtitle 5 of this title and Title 10 of this article have been exhausted. If an individual filed a joint return, the Comptroller may not withhold or pay to another state the individual’s income tax refund unless the certification includes both names of the individuals jointly owing income tax to the other state. After receiving a certification from a taxing official, the Comptroller shall notify the other state if the Comptroller determines that a withholding cannot be made.

In this part the following words have the meanings indicated. “Local official” means a unit or official of a political subdivision of the State charged with the imposition, assessment, or collection of taxes or other liabilities payable to the political subdivision. “Refund” means a refund of any tax imposed under Maryland law. “Vendor payment” means any payment made by the State or by a political subdivision of the State to any person. “Vendor payment” includes any expense reimbursement payable to an employee of the State or of a political subdivision of the State. “Vendor payment” does not include a person’s salary, wages, or pension.

Except as provided in subsection (b) of this section, a local official may: certify to the Comptroller the existence of a person’s delinquent tax liability or any other liability owed by the person to the local official’s political subdivision; and request the Comptroller to withhold any refund and vendor payment to which the person is entitled. A local official may not certify or request the Comptroller to withhold a refund or vendor payment unless the laws of the local official’s political subdivision: allow the Comptroller to certify tax due to the State; allow the Comptroller to request the local official to withhold from any vendor payment the person’s tax due to the State; and provide for the payment of the amount withheld to the Comptroller. The withholding of a refund or vendor payment shall be subject to the priorities under § 13-918 of this subtitle.

A certification by a local official to the Comptroller shall include: the full name and address of the person and any other names known to be used by the person; the Social Security number or federal tax identification number, if known; the amount of the tax or other liability including: a statement indicating the nature of the liability; and in the case of a liability for taxes, a detailed statement for each taxable year showing tax, interest, and penalty; and a statement that all administrative remedies and appeals have been exhausted and that the tax or other liability has become final. The Comptroller shall determine if a person for whom a certification is received is due a refund of Maryland tax or a vendor payment. Subject to subsection (d) of this section, as to any person due a refund or vendor payment, the Comptroller shall: withhold any refund and vendor payment that is due a person whose name has been certified by a local official; notify the person of the amount withheld in accordance with the certification by a local official of the existence of a tax or other liability; pay to the political subdivision the lesser of: the entire refund and vendor payment; or the amount certified; pay any refund and vendor payment in excess of the certified amount to the person; and if the refund and vendor payment is less than the certified amount, withhold amounts from subsequent refunds and vendor payments due the person, if the laws of the political subdivision provide that the political subdivision shall withhold a vendor payment due persons certified to the political subdivision by the Comptroller. If an individual filed a joint income tax return, the Comptroller may not withhold or pay to a political subdivision the individual’s income tax refund unless the certification includes both names of the individuals filing the joint income tax return.

In this part the following words have the meanings indicated. “Federal official” means a unit or official of the federal government charged with the collection of nontax liabilities payable to the federal government pursuant to 31 U.S.C. § 3716. “Nontax liability due the State” means a liability certified by the Secretary of Budget and Management to the Comptroller. “Refund” means an amount described as a refund of tax under the provisions of law that authorize its payment. “Vendor payment”: means any payment, other than a refund, made by the State to any person; includes any expense reimbursement to an employee of the State; and does not include a person’s salary, wages, or pension.

Except as provided in subsection (b) of this section, a federal official may: certify to the Comptroller the existence of a person’s delinquent nontax liability owed by the person to the federal government; and request the Comptroller to withhold any refund and vendor payment to which the person is entitled. A federal official may certify and request the Comptroller to withhold a refund or vendor payment only if the laws of the United States: allow the Comptroller, on behalf of the State, to certify tax and nontax liabilities due to the State; allow the Comptroller, on behalf of the State, to enter into a reciprocal agreement with the United States, pursuant to which the federal official would be required to offset federal payments to collect delinquent debts owed to the State; and provide for the payment of the amount withheld to the State. The Comptroller shall apply a refund or vendor payment received from a federal official according to the priorities under § 13-918 of this subtitle.

A certification by a federal official to the Comptroller shall include: the full name and address of the person and any other names known to be used by the person; the Social Security number or federal tax identification number; the amount of the nontax liability; and a statement that the debt is past due and legally enforceable in the amount certified and that there are no legal barriers to collection by offset. The Comptroller shall determine if a person for whom a certification is received is due a refund of Maryland tax or a vendor payment. Subject to § 13-931(b) of this subtitle and subsection (d) of this section, as to any person due a refund or vendor payment, the Comptroller shall: withhold any refund and vendor payment that is due a person whose name has been certified by a federal official; notify the person of the amount withheld in accordance with the certification by a federal official of the existence of a liability; pay to the federal official the lesser of: the entire refund and vendor payment; or the amount certified; pay any refund and vendor payment in excess of the certified amount to the person; and withhold amounts from subsequent refunds and vendor payments due the person if the initial refund and vendor payment is less than the certified amount. If an individual filed a joint income tax return and the debt certified by a federal official is not the liability of both parties to the joint income tax return, the Comptroller may not withhold or pay to the federal official that portion of the income tax refund attributable to the individual not owing the debt.