News and Events

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

$50 Minimum Debt Loaded at the Clearinghouse The debt setoff legislation has always stated that only debts $50 or greater can be submitted to the Department of Revenue/Education Lottery for setoff. However, the Clearinghouse has always allowed local governments to submit debts less than $50. These debts were stored at the Clearinghouse and loaded on the Interactive Voice Response (IVR) system. But as part of our normal year end process we remove all debts less than $50. Beginning January 1, 2016 when the Clearinghouse processes files on the weekend that were submitted by local governments, we no longer load debts less than $50 that are not already in our system. If the debt exists at an amount more than $50, it can be adjusted to an amount less than $50. This provides additional security as there is no need to store identifiable information on people that we cannot submit for setoff. This also keeps these debts from being on the IVR and debtors hearing that information and calling local governments for debts that cannot be setoff. Local governments are still allowed to maintain debts less than $50 in their software or in their submitted files to the Clearinghouse and will continue to be allowed. Note: debts that begin the year at the Clearinghouse at $50 or above can be reduced to an amount less than $50 by an adjustment file from the local government or from a setoff.
Newsletters/Technical Bulletins

A great 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:

  1. 2017 BEGINNING A NEW TAX YEAR - MARCH 3, 2017
  2. 2016 POST-WORKSHOP AND YEAR END - DECEMBER 8, 2016
  3. 2016 PRE-WORKSHOP - JULY 29, 2016
  4. 2016 WELL INTO ANOTHER YEAR - MAY 9, 2016
  5. 2015 YEAR-END - DECEMBER 28, 2015
  6. 2015 POST-WORKSHOP - OCTOBER 29, 2015
  7. 2015 PRE-WORKSHOP - JUNE 30, 2015
  8. 2015 BEGINNING A NEW TAX YEAR - JANUARY 22, 2015
  9. 2014 YEAR-END - DECEMBER 18, 2014
  10. 2014 POST-WORKSHOP - OCTOBER 31, 2014
  11. 2014 PRE-WORKSHOP - JULY 31, 2014
  12. 2014 EARLY SUMMER - JUNE 16, 2014
  13. 2014 BEGINNING A NEW TAX YEAR - FEBRUARY 3, 2014
  14. 2013 YEAR-END SUPPLEMENT - DECEMBER 19, 2013
  15. 2013 YEAR-END - DECEMBER 3, 2013
  16. 2013 POST-WORKSHOP - OCTOBER 1, 2013
  17. 2013 PRE-WORKSHOP - AUGUST 1, 2013
  18. 2013 EARLY SUMMER - JULY 9, 2013
  19. 2013 BEGINNING A NEW TAX YEAR - JANUARY 31, 2013
  20. 2012 YEAR-END - NOVEMBER 8, 2012
  21. 2012 POST-WORKSHOP - OCTOBER 8, 2012
  22. 2012 PRE-WORKSHOP - JULY 26, 2012
  23. 2012 EARLY SUMMER - JUNE 18, 2012
  24. 2012 SETOFF UNDERWAY - MARCH 30, 2012
  25. 2012 SETOFFS BEGINS - FEBRUARY 10, 2012
  26. 2012 BEGINNING THE NEW TAX YEAR - JANUARY 27, 2012
  27. 2011 YEAR-END - DECEMBER 9, 2011
  28. 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. You can also unsubscribe.
2017 Participation Form

2017 Participation Form

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.
2016 Department of Revenue Setoff File Calendar

2016 Setoff File Calendar- see the setoff schedule for the entire 2016 year. There will be twenty-two setoff files beginning in February and ending in December. All months have two setoff files. Information is made available via the secure website on Fridays (February - April) and Thursdays (May - December).

Names, Departments and Email Addresses Form

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
Client Software Upgrade

We have completed the implementation of the encrypted version of our 2014/2015 client software. We have upgraded all of the users of our previous software (non-encrypted) and several new participants. We have also converted many ASCII/Excel users.  This was a major release that will probably require the support of your I.T. staff. Click here to see the details and required form for requesting the upgrade. There is no cost to upgrade. (Updated - June 29, 2015)

Operation Clean-up 2015/2016:

We completed three phases of cleaning up debtors and debts in order to have data as clean as possible for mid-January 2016 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 Software Users can do with software, reminders with instructions sent by mid-December
  • Phase 2 - Expired Debts (November through December) - Clearinghouse provides excel files with instructions in early December
  • Phase 3 - Invalid SSNs (November through December)
    •  - Clearinghouse provided excel files with instructions the week of November 5.

    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 2015. 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).

    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.
    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 NC Association of County Commissioners and League of Municipalities. An email will be sent once implementation processes and procedures are finalized. (NO UPDATES as of June 29, 2015)
    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. (NO UPDATES as of June 29, 2015)