News, Events and Tips

This is the page for the latest important information for participating in the debt setoff program.

Recent Newsletters - A source of great information!

Check them out and feel free to download, print and share these pdfs with other debt setoff users, management, I.T. or vendors/third-party support:

  • 2013 BEGINNING A NEW TAX YEAR - JANUARY 31, 2013
  • 2012 YEAR-END/NEW YEAR - NOVEMBER 8, 2012
  • 2012 POST-WORKSHOP - OCTOBER 8, 2012
  • 2012 PRE-WORKSHOP - JULY 26, 2012
  • 2012 EARLY SUMMER  - JUNE 18, 2012
  • 2012 SETOFF UNDERWAY - MARCH 30, 2012
  • 2012 SETOFFS BEGINS - FEBRUARY 10, 2012
  • 2012 BEGINNING THE NEW TAX YEAR - JANUARY 27, 2012
  • 2011 YEAR-END/NEW YEAR - DECEMBER 9, 2011
  • 2011 POST WORKSHOP - OCTOBER 10, 2011
    • If you didn't get an emailed attached copy when created but would like to get the next one send an email request to Customer Service

    Department of Revenue Setoff File Calendar

    2013 Setoff File Calendar- see the setoff schedule for the entire 2013 year. There will be twenty-two setoff files beginning in February and ending in December. All months have two setoff files except October (3 setoff files) and December (1 setoff file). Information is made available via the secure website on Fridays (February - April) and Thursdays (May - December).

    2013 Names, Departments and Email Addresses Form

    2013 Names, Department and Email Form- allows for up to ten email addresses to be specified to receive any or all of these types of emails:

      1) FUNDS RECEIVED/IMPORT STATUS REPORT
      2) UPLOAD/DOWNLOAD CONFIRMATIONS
      3) SETOFF FILES NOT DOWNLOADED REMINDER
      4) INFORMATIONAL/NEWSLETTERS/WORKSHOPS
      ALL OF THE ABOVE
    Don't forget I.T. staff and third-party vendors. Once submitted a simple email to add, edit or remove a person can be sent to Customer Service

    2013 Participation Form

    2013 Participation Form- allows for debts to be submitted from the present until December 31, 2013

    Trouble printing or just want to complete a hard copy form, click here for a pdf version. Please complete the online form even if problems printing.
    Client Software Upgrade

    We are well into the implementation of our 2011 client software. We have upgraded more than 140 existing users of our previous software and several new participants. We have also converted some ASCII/Excel users.  This is a major release that will probably require the support of your I.T. staff. This is the first release since 2007 and contains the previous functions along with many significant improvements. Click here to see the details and required form for requesting the upgrade. There is no cost to upgrade. However, if you are using version 2005-2007 you need to convert by summer 2012. Updated - January 7, 2012

    Operation Clean-up 2011/2012:

    We will have three phases of cleaning up debtors and debts in order to have data as clean as possible for mid-January 2012 when the next heavy tax year begins. Options will be to remove debts: 1) $0.00 that were setoff or not setoff; 2) debts less than $50.00 that were setoff or not setoff; 3) expired debts: all, $0.00 or less than $50.00.

  • Phase 1 - $0.00 debts (November through December) - ASCII/Excels must do themselves and request Purge and reload; Client Users (2007) received email instructions;  Client Users (2011) can do with software, reminders with instructions will be sent by mid-December (COMPLETED)
  • Phase 2 - Expired Debts (November through December) - Clearinghouse will  provide excel files with instructions the week of December 5 (COMPLETED)
  • Phase 3 - Invalid SSNs (November through December)
    •  - Clearinghouse will provide excel files with instructions the week of November 5 (COMPLETED)

    If you are an ASCII or Excel participant and do not participate in the clean-up we will remove all $0.00 debts and expired debts in early January 2012. However, if you send your entire file of debtors each time you will notice in the Import Status report debts that you are still sending debts that are expired. Beginning January 2011 we no longer load debts that are $0.00 (unless the debt is currently in our system with a debt amount not $0.00 in order to adjust the debt amount).

    Department of Revenue Setoff File Calendar

    2012 Setoff File Calendar- see the setoff schedule for the entire 2012 year

    2011 Legislative Change Allows Housing Authorities to Setoff Debts A ratified bill, House Bill 339, was signed by the governor in June 2011. This allows Housing Authorities created under Chapter 157 of the General Statutes, provided that the debt owed to a housing authority has been reduced to a final judgment in favor of the housing authority. The bill is effective October 1, 2011. Click here to view the legislation. NOTE: there are issues with Housing and Urban Development (HUD) allowing us to deposit funds to the N.C. Capital Management Trust. Once this is resolved notifications will be sent to N.C. housing authorities.
    Legislative Change Allows Local Governments to Setoff Corporations A budget bill signed by the governor June 30, 2010 allows for this. However, we are working with the Department of Revenue on the issues associated. The Clearinghouse is eager and ready to implement as soon as authorized by the N.C. Association of County Commissioners and League of Municipalities. An email will be sent once implementation processes and procedures are finalized. NO UPDATES as of January 7, 2012
    Legislation Update on Setoff of Federal Tax Refunds A bill, HR 3060 was submitted in 2009 to the House Ways and Means Committee. The bill was not passed but did receive additional sponsors from at least one state doing local government debt setoff. 

    Official Summary of the Bill

    Date introduced: 6/25/2009--Amends the Internal Revenue Code to direct the Secretary of the Treasury, upon receiving notice from a state or local government that a named individual owes a past-due legally enforceable tax obligation to a local government, to pay such tax debt from any federal tax refund due to such individual, after notifying such individual of the offset.

    Current Tip:

    #1 - 2012/13 Client software users - you can download your Import Status Report error file directly from the software. You don't have to sign-on to the secure website. Just select the  and click Print Report and it automatically prints.

    #2 - Curious about the data you have at the Clearinghouse? We can create an Excel spreadsheet that will have details on every debtor and debt in our database. It has SSN, Name, address, debt amount, compliance date, expiration date, account number, unique key, setoff amount and setoff date. You could take this file and put in a format to re-send to us and let it replace your existing debts with a corrected version. Just contact us, we can normally create this by the next business day.