(a) An income tax refund payable by the Virgin Islands Bureau of Internal Revenue or the U.S. Treasury Department which is otherwise due to a support obligor shall be reduced by the amount of any overdue support obligation owed by the support obligor.
(b) The amount by which the income tax refund is reduced shall be distributed in accordance with section 457(b)(4) of Title IV-D of the Social Security Act or section 457(d)(3) in the case of overdue support assigned to the Virgin Islands Government, or, in the case of overdue support which the Virgin Islands Government has agreed to collect under section 454(6) of Title IV-D of the Social Security Act shall be distributed, after deduction of any fees imposed to cover the costs of collection, to the child or parent to whom such support is owed. Such fees shall not exceed the lesser of twenty-five ($25.00) or the actual costs of collection.
(c) Prior to any request for income tax refund withholding under this section, the Division of Paternity and Child Support shall provide the support obligor with notice and opportunity for hearing as provided for in sections 355 and 356 of this chapter.
(d) In any case in which a withholding under this section has in good faith been requested and paid to the Division of Paternity and Child Support by the Virgin Islands Bureau of Internal Revenue under Title 33, section 1828, and it is determined that the amount certified to and paid by the Bureau is in excess of the amount of overdue support actually owed, the Division of Paternity and Child Support shall remit, without penalty to the Division, the excess amount to the support obligor, or if the excess was paid from the share of a person who filed a joint return with the support obligor, to the joint taxpayer.