Setoff Debt steps to participate (2011 tax year program) : Municipal Association of SC

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Setoff Debt steps to participate (2011 tax year program)

Complete the 2011 Participation Form. The form is due to the Municipal Association by September 3, 2011.
Participants must have contact, user and fee information entered into the system by September 3, 2011.
The participant must use the software 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.
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 include an explanation of the alternatives which could prevent setoff, including payment of the debt or filing a written protest within thirty days.

The Municipal Association's software application will generate these letters for every debtor in the system.

To meet the Association's established deadlines, letters must be mailed by October 6, 2011. This will make the thirty-day deadline November 5, 2011.

After the initial letters are mailed complete and mail the Initial Letter Certification form. The form is due to the Municipal Association by October 8, 2011.
All information for SSN research must be entered into the system by October 6, 2011.
After notification is mailed to all debtors, some will begin to make payments. Use the software application to enter these payment amounts. The system will automatically recalculate the amount of the debt still owed.
After sending the initial letters to debtors (at least by October 6), the debt amount cannot be increased and new accounts cannot be added. As debtors make payments, the participant must post the payments in the software application. The Municipal Association will forward this information to DOR weekly, so a debtor's refund is not reduced by more than is currently owed.
By November 3, 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 prepare 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 Only – an Ordinance must be passed relating to the recovery of collection costs as a part of the delinquent debts collected pursuant to the Setoff Debt Collection Act.

Other Entities – a Resolution must be passed relating to the recovery of collection costs as a part of the delinquent debts collected pursuant to the Setoff Debt Collection Act.
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, Student Handbook, etc. A copy of the Addendum is due to the Municipal Association by November 3, 2011.
Complete the Direct Deposit Authorization Form. The form is due to the Municipal Association by November 3, 2011.
All SSN research return information must be entered into the system by November 11, 2011.
By November 16, 2011, the participant must release initial data to the Municipal Association.

The software application will release all debtors whose current debts are greater than zero. By releasing the initial data to Municipal Association, you will be certifying that the information is correct and setoff debt procedures have been followed.

The individual listed in the software application as the Supervisor must release the initial data.

The Municipal Association will forward all claims to DOR on December 8, 2011.
DOR will match debts owed to tax refunds using social security numbers. DOR will periodically mail the Municipal Association a check along with a listing of claims, which have been setoff. The Municipal Association will upload this information into the software 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.
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 software application to see if letters need to be printed. The software application will generate letters to all debtors whose debts have been reduced or fully satisfied.
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 is included on this notification, so the debtor can call for more information.
At the end of the 2011 Setoff Debt Program tax year (August 2012), the Municipal Association will run New Year Processing to startup the 2012 tax year. All records with a current debt greater than zero will be setup for the 2012 tax year. Then, participants can add, delete and modify debtors for the 2012 tax year.
Each participant must establish an administrative appeal process.

Municipal Association of South Carolina

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Setoff Debt steps to participate (2011 tax year program)