The department is entitled to receive overpayments of State tax owed to any individual taxpayer, estate or trust to repay overpayments of medical assistance received by individuals who are or have been enrolled as providers in the medical assistance program, 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 medical assistance overpayments and requesting repayment of the overpayments in accordance with section 520.3 of this Part. The department may not receive overpayments of State tax if a proceeding for administrative or judicial review regarding the overpayments of medical assistance is pending, or if the time for initiation of such a proceeding has not expired.