The department is entitled to receive overpayments of State tax owed to any individual who has received an overpayment of public assistance benefits provided that the department or a social services district has previously mailed a written determination or notice to the individual, identifying the amount and nature of the public assistance benefits overpayment, and requested repayment of the overpayment. The department may not receive an overpayment of State tax if a proceeding for administrative or judicial review regarding the overpayment of public assistance benefits is pending or if the time for initiation of such proceeding has not expired.