(a) Upon notification by the Division of Paternity and Child Support that a person under tax liability to the United States Virgin Islands Government owes overdue support under a support order, the Director shall determine whether there is an amount due or payable by the Government to the person as a refund for the income tax, regardless of whether the person filed as a married or unmarried taxpayer or whether the person filed a single or joint return.
(b) If the Director finds that an amount is payable, he shall withhold from the refund an amount equal to the overdue support, and shall, concurrent with the withholding, send notice to the person and any other person filing a joint return with the person owing the overdue support that the withholding has been made and of the steps which the other person may take in order to secure his or her proper share of the refund.
(c) The Director shall pay the amount withheld to the Division of Paternity and Child Support and the Division shall pay to the Bureau of Internal Revenue less any fee imposed by the Director of Internal Revenue to cover the cost of the withholding and the notification. The fee imposed under this subsection may not exceed twenty-five dollars ($25.00) per withholding. In accordance with section 457 of Title IV-D of the Social Security Act (42 U.S.C. 657), the Division of Paternity and Child Support shall distribute such amounts withheld to the person to whom the support is owed or to the Government agency to which support rights have been assigned.
(d) If the Director determines that the amount withheld under subsection (b) of this section is based upon a joint return, the Director shall notify the Division of Paternity and Child Support that the withholding is being made from a refund based upon a joint return, and shall furnish to the Division of Paternity and Child Support the names and addresses of each taxpayer filing the joint return.
(e) If the person filing the joint return with the person owing the overdue support takes appropriate action pursuant to regulations of the Virgin Islands Bureau of Internal Revenue, to secure his or her proper share of the refund from which the withholding was made, the Director shall pay such share to the person and pay to the Division of Paternity and Child Support the remaining share of the person owing the overdue support.
(f) The name, address, and the social security number of the support obligor subject to an income tax withholding under this section shall be furnished to the Division of Paternity and Child Support upon receiving notification under subsection (a) of this section.