Rhode Island General Laws Title 44. Taxation § 44-1-11.1. Set-off for delinquent taxes--Trust funds

If the tax administrator determines that any person, firm, corporation, partnership, or other entity doing business with the state or a state agency has neglected or refused to pay over to the tax administrator trust fund taxes as defined in § 44-19-35 or 44-30-76 and/or has failed to file tax returns for those trust funds, the tax administrator shall notify the state controller of the delinquency. The state controller, upon certification of the amount of the tax delinquency by the tax administrator, shall set-off the amount of the tax delinquency against any payment due that person or entity, and the tax administrator shall credit that amount against the tax due.

Provided, that the tax administrator may not seek set-off until time that a delinquency determination for the trust funds has been directed to the person or entity. Provided, further, that if a person or entity assessed a deficiency determination for the trust funds has requested a hearing on the assessment within the applicable statutory period, no request for set-off may be made while the matter is pending in hearing or from any appeal.