1)      Complete the 2015 Participation Form. The form is due to the Association by September 21, 2015.

2)      Participants must enter contact, user and fee information into the system by September 21, 2015.

3)      The participant must use the application developed by the Municipal Association to administer the Setoff Debt Program. The Association will make special arrangements for those who do not have the appropriate Internet connection to access the application.

  • The participant will enter outstanding debt information into the software application. Debt information includes each debtor's social security number, name, last known address, amount owed, and date the debt was delinquent.

4)      All information for Accurint to research Social Security Numbers must be entered into the system by October 13, 2015.

5)      The participant must notify each debtor by postage prepaid mail of its intention to submit the debt to the Department of Revenue for setoff. The notice must explain how the debtor can prevent the setoff, including payment of the debt or filing a written protest within 30 days.

  • The Association's software application will generate these letters for each debtor in the system.
  • To meet the Association's November 12, 2015 deadline and adhere to the 30-day notice requirement, letters must be mailed by October 13, 2015.
  • After mailing the initial letters, complete and mail the Initial Letter Certification form to the Association. The form is due October 19, 2015.

6)      Each participant must establish an administrative appeal process.

7)      After sending the initial letters to debtors (at least by October 13), you cannot increase the debt amount or add new accounts. The Association will forward this information to DOR weekly, so a debtor's refund is not reduced by more than is currently owed.

8)      Once debtors receive their notifications, some will begin to make payments. Enter these payments into the application. The system will automatically recalculate the amount still owed, if any.

9)      By November 18, the Association must receive the Agreement and Resolution to Participate. Also, the Association must receive a copy of either the Ordinance (municipalities only) or Resolution (all other entities) regarding the recovery of collection costs. It is not necessary to resubmit these documents if they are already on file with us.

  • A Resolution must be passed authorizing the Municipal Association to collect debts on behalf of the participant. The resolution authorizes the chief executive officer (i.e. mayor, city manager, special purpose district manager, chairman or commissioner) to sign an agreement setting forth the terms of the program.
  • Municipalities must pass an ordinance related to the recovery of collection costs as a part of the delinquent debts collected pursuant to the Setoff Debt Collection Act.
  • Other entities must pass a resolution related to the recovery of collection costs as a part of the delinquent debts collected pursuant to the Setoff Debt Collection Act.

10)   Add the Customer Agreement/Service Contract Addendum to documents involving customer financial transactions, such as your customer agreement/service contract, customer bills, parking tickets, payment agreement, Website, Student Handbook, etc. A copy of the Addendum is due to the Association by November 18, 2015.

11)  Complete the Direct Deposit Authorization Form. The form is due to the Association by
 November 18, 2015.

12)  All information received from SSN research must be entered into the system by November 18, 2015.

13)   By November 18, 2015, the participant must release initial data to the Association.

  • The application will release all debtors whose current debts are greater than zero. By releasing the initial data to the Association, you are certifying that the information is correct and you have followed all setoff debt procedures.
  • The individual listed in the application as the supervisor must release the initial data.
  • The Association will forward all claims to DOR by December 1, 2015.

14)   DOR will match debts owed to tax refunds using social security numbers. DOR will periodically mail the Association a check along with a listing of claims which have been setoff. The Association will upload this information into the application and periodically send each participant a check for all debtors who have been setoff. The system will show all DOR setoffs by debtor and whether the participant has received a check to cover this setoff.

15)   After receiving notification through the software application, the participant must notify the debtor of the setoff. Each participant will be responsible for periodically checking the application to see if letters need to be printed. The software application will generate letters for all debtors whose debts have been reduced or fully satisfied.

16)   DOR will also notify the debtor of the setoff. The participant's name and address to whom the debt is owed and the debtor contact's name and telephone number are included on this notification, so the debtor can call for more information.

17)   At the end of the 2015 Setoff Debt Program tax year (August 2016), the Association will perform New Year Processing to startup the 2016 tax year. All records with a current debt greater than zero will be setup for the 2016 tax year. Then, participants can add, delete and modify debtors for the 2016 tax year.