Association of Indiana Counties TRECs Tax Refund Exchange

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Association of Indiana Counties TRECs Tax Refund Exchange and Compliance System DAVID BOTTORFF EXECUTIVE

Association of Indiana Counties TRECs Tax Refund Exchange and Compliance System DAVID BOTTORFF EXECUTIVE DIRECTOR ASSOCIATION OF INDIANA COUNTIES

Debt Setoff: Effective, Efficient Debt Collection Wait- Back Up… What is debt offset again?

Debt Setoff: Effective, Efficient Debt Collection Wait- Back Up… What is debt offset again? §Allows any eligible debt owed to local government agencies to be collected by deducting the amount owed from state income tax refunds

Step 1 County Treasurer determines they would like to participate in TRECs ØObtains a

Step 1 County Treasurer determines they would like to participate in TRECs ØObtains a green light from the county commissioners ØCompletes registration form and executes Mo. U ØNotifies county’s financial software vendor of intent to participate

Step 2 County determines debts for submission ØFormats to TRECs File Layout Requirements –

Step 2 County determines debts for submission ØFormats to TRECs File Layout Requirements – No LLCs, No debts <$25, removes records filed for bankruptcy, etc. ØSends Pre-Intercept Notification letters to candidates ØWaits 30 days

Step 3 County Submission ØSubmits appropriate records through SFTP ØCounty submits new candidates as

Step 3 County Submission ØSubmits appropriate records through SFTP ØCounty submits new candidates as needed ØReconciles paid debts by updating amount-owed to 0

Step 4 Clearinghouse ØFinds SSNs, scrubs data, sends to IDOR ØIDOR reports back to

Step 4 Clearinghouse ØFinds SSNs, scrubs data, sends to IDOR ØIDOR reports back to Clearinghouse on matches ØClearinghouse sends 2 nd Notice to matched debtors and allows 30 day contestation period ØAt this time, counties should refresh records with any new penalties, fees or payments

Step 5 IDOR ØSets off debts from matches ØDistributes $ to Trust. INdiana ØSubmits

Step 5 IDOR ØSets off debts from matches ØDistributes $ to Trust. INdiana ØSubmits offset letter to debtors

Step 6 Clearinghouse ØDirects Trust. INdiana on County Account dispursement ØNotifies Counties of monies-collected

Step 6 Clearinghouse ØDirects Trust. INdiana on County Account dispursement ØNotifies Counties of monies-collected and deposited ØSends Counties reconciliation file for upload

AIC TRECs Local Government Clearinghouse Process Claimant agency registers to participate beginning 9. 25.

AIC TRECs Local Government Clearinghouse Process Claimant agency registers to participate beginning 9. 25. 17 and executes Mo. U Claimant agency sends preintercept notices to taxpayers Debtor has 30 days to resolve or contest debt Claimant agency submits claims via file transfer to AIC clearinghouse Clearinghouse sends final setoff requests to IDOR Clearinghouse sends notification to matched debtors and waits contestation period of 30 days IDo. R checks claims for refund via debtor SSN & name, holds matching refunds & notifies Clearinghouse scrubs data, provides SSN lookup, & submits to IDo. R sets off debt & notifies debtor of action, including IVR service number for claimant agency contact IDo. R submits file to clearinghouse of matches for reconciliation IDo. R credits funds to claimant agencies via Trust. INdiana which distributes funds under Clearinghouse direction Clearinghouse transmits files to county for import into financials

Marion County Pilot End Result 28% (4, 057 Matches) $1. 04 Million+ Eligible for

Marion County Pilot End Result 28% (4, 057 Matches) $1. 04 Million+ Eligible for Collection 2 x Best Year Match Rate in NC Program

Trust. INdiana • Increased members/assets • Relationship-building Counties/Local Govt Agencies • Monies-owed obtained easily

Trust. INdiana • Increased members/assets • Relationship-building Counties/Local Govt Agencies • Monies-owed obtained easily and efficiently • Builds relationship with state association • Previously uncollectable debt collected FSCAIC • Revenue for the organization • Builds relationship with members S T I F E N E B Debtor • Potentially lowered collection penalties • Debt reconciled with no action on their part • Avoids negative impact on credit rating • Debt satisfied when funds are available IN Department of Revnue • Increased revenue due to higher # of participants • Less administrative duties because only deal with one entity for all local government debts

Thank You! DAVID BOTTORFF EXECUTIVE DIRECTOR ASSOCIATION OF INDIANA COUNTIES

Thank You! DAVID BOTTORFF EXECUTIVE DIRECTOR ASSOCIATION OF INDIANA COUNTIES