Section 81.308. Refunds

(a) Upon application of a judicial official, the Board may return interest paid to it. For example, if a judicial official mistakenly places custodial funds which are not qualified funds in an MJ-IOTA account, interest earned on those funds may be refunded.

(b) At the time of the issuance of these regulations, all custodial funds handled by Magisterial District Judges are anticipated to be qualified funds. Magisterial District Judges occasionally may determine that certain custodial funds maintained in their custodial account do not meet this presumption, and are not qualified funds. Upon application of the Magisterial District Judge, the Board may return interest paid to it applicable to the funds which were not qualified funds.

(c) The following guidelines apply to requests for refund of interest:

(1) All requests by a judicial official must be made on the judicial official’s official letterhead, and all requests must set forth in reasonable detail the basis for the requested refund;

(2) The request must be accompanied by verification of the interest paid with respect to the funds mistakenly placed in the MJ-IOTA account. Verification must be made by the depository institution in which the MJ-IOTA account is maintained. As needed for auditing purposes, the Board may request additional documentation;

(3) The request must be made within six months after the beneficial owner’s funds have been disbursed from the MJ- IOTA account;

(4) Refunds will be remitted to the beneficial owner and the Board will issue an IRS (Internal Revenue Service) form 1099 to the beneficial owner;

(5) If the depository institution has imposed a service charge with respect to the MJ-IOTA account, only the net amount of interest paid to the Board (i.e., the interest reduced by applicable service charges) will be refunded; and

(6) The Board may impose and deduct a processing charge from the refund.

The provisions of this § 81.308 adopted January 6, 2005, effective February 1, 2005, 35 Pa.B. 497.