Authorized by a 1992 amendment to the Setoff Debt Collection Act, the Municipal Association collects delinquent accounts or debts owed to municipalities, utilities and other governmental entities. Participants of the Association’s Setoff Debt Collection Program submit claims to the Association which forwards them to the state Department of Revenue each year. DOR matches the claims list with state income tax refunds due to taxpayers.
The Department of Revenue only accepts social security numbers not taxpayer identification numbers. Therefore, all claims submitted by participants must include the debtor’s social security number.
If an entity is not a current Setoff Debt participant, a representative must attend the mandatory training session on July 24 to participate in the 2012 Program. For current participating entities, there is a mandatory training session on July 26 for employees who will be working with the Setoff Debt Program for the first time.