News and Events

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

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. 2023 WORKSHOPS - SEPTEMBER 18, 2023
  2. 2022 WORKSHOPS - SEPTEMBER 28, 2022
  3. 2022 BEGINNING A NEW TAX YEAR - FEBRUARY 4, 2022
  4. 2021 PRE-WORKSHOP - SEPTEMBER 15, 2021
  5. 2020 END OF MAJOR REFUND SEASON - AUGUST 17, 2020
If you didn't get an emailed attached copy of the most recent newsletter but would like to get the next one, send an email request to Customer Service. You can also unsubscribe.

Clearinghouse changes regarding notification letters Effective July 1, 2019, the Clearinghouse will no longer generate notification letters for local governments that submit new debtors/debts without social security numbers or ITINS. (DATA ENTRY USERS).

Effective August 1, 2019, the Clearinghouse will no longer import debtors/debts into our software, nor generate notification letters without social security numbers (SSN) or Individual Tax Identification Number (ITIN). (SOFTWARE USERS).

Effective January 1, 2020, the Clearinghouse will no longer generate notification letters. (DATA ENTRY USERS).

There is a Microsoft Word template on the forms page in the Sample Notification letters section that local governments can use to generate their own notification letters for debtors without SSNs or ITINs.


ITIN - Individual Tax identification Number - Individual Taxpayer Identification Number (ITIN) is a personal Tax ID number issued by the Internal Revenue Service to individuals who are required to have a U.S. taxpayer identification number but who do not have and are not eligible to get a Social Security number (SSN).
$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.
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
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 December 31, 2018)