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Maximize your collection efforts Agency Collection Programs.

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Presentation on theme: "Maximize your collection efforts Agency Collection Programs."— Presentation transcript:

1 Maximize your collection efforts Agency Collection Programs

2 Maximize your collection efforts Agency Collection Programs

3 Updates/News Fiscal year July 1 st to June 30 th (As of March 31st)

4 SDC Program Sec (8), Wis. Stats. State agencies are required Local governments may participate SDC State Debt Collection Program

5 Agency Collections The difference between SDC and TRIP is that DOR becomes collector of the SDC debt. Agency must stop all collections SDC State Debt Collection Program

6 Agency Collections DOR uses same authorities as individual income tax collections: Payment plan Wage attachment Financial institution levy Refund offset SDC State Debt Collection Program

7 SDC Program Debts to refer Debt balance > $100 Debt amount must be final Aged at least 90 days Debtor has not paid, or entered into payment plan.

8 SDC Program Referral Notice Similar to TRIP notice 30 days prior to referral Provide opportunity for debtor to resolve the debt.

9 SDC Program Collection Fee Debtor is assessed the fee Fee = 15% ($35 minimum) of amount referred Fee is satisfied first by statute

10 SDC Program Interest If your debt has interest, then DOR will assess monthly at the rate you specify After fees are satisfied, payments are applied to interest, then debt amount.

11 SDC Program Debt balances and updates to debt Adjust debt balance either up or down, only if the amount originally sent was in error Collection fee, and interest automatically adjust based on new balance

12 SDC Program Debt Recall Use if the debt was sent in error DOR sends back the remaining balance

13 SDC Program Payments received by agency If you receive a payment by check – send the check to DOR If you receive an electronic payment – contact us. We will work out the easiest method to resolve. NOTE: If you receive the payment after referral – DOR's collection fee is still due.

14 SDC Program Reports Agency Summary  Complete listing of active debtors  Bankruptcy info  Current balance  Collections to date  Collection stage

15 SDC Program Reports Return debt  Listing of debts we are returning to your agency.  Return reasons include: Satisfied, uncollectible, deceased.

16 SDC Program Reports Payments  Monthly distribution  Amounts collected by debtor report  Payments are sent by ACH 3 business days after payment report

17 SDC Coordinator To enroll in SDC program, please contact or to obtain: -Agency agreement -Banking information form For more information about SDC program, please review: SDC User Guide MTA-SDC User Guide

18 TRIP Program Local governments – sec , Wis. Stats. Definition of DEBT – "…and any other debt that is at least $20…" Debt Amount - Each debt must stand on it's own as $20. –You cannot add up 4 debts of $5 to make the $20 requirement. –You can add 5 debts of $20 to certify as $100.

19 TRIP Program Local governments – sec , Wis. Stats. Definition of DEBTOR – "…owes a debt to a municipality or county." Note – restitution may be certified as long as it is owed to the local government. It cannot be certified if it is owed to the victim.

20 TRIP Program Local governments – sec , Wis. Stats. Reasonable notice & opportunity – the debtor must be provided with notice that they owe the assessment. Debtor notice – Within 5 days a notice of certification letter must be sent to the debtor. –To last known address

21 TRIP – Program Local governments – sec , Wis. Stats. Debt balance must be greater than $ –When a debt balance falls below $20 we will close the debt for collection. Refund amounts of greater than $10.00 will be set off against debts. There is a $5.00 fee to the debtor for each setoff.

22 TRIP Program Local governments – sec , Wis. Stats. Keep balances current. –If a debtor pays you, update the amount in TRIP right away. DOR intercepts refunds all year around. –Request Agency Summary frequently Monthly interest updates are allowed. Certify each debt as new. –You cannot add to debt balances other than for interest.

23 TRIP – Debtor information Local governments – sec , Wis. Stats. Debts are certified with: Social Security Number (SSN) Driver's License Number (DLN) Federal Employer Identification Number (FEIN) Note: If you do not have one of the three types above, you may need to hire a collection agency to locate the identifier for you.

24 TRIP – Debtor information Local governments – sec , Wis. Stats. Name matching: If SSN exists in tax system: –First four of last name, if that does not match, then first four of first name to catch marital status changes. –If Name/ID mismatch use TRIP Inquiry to request validation. Sometimes the tax history is wrong. Set up if SSN does not exist in tax system DOR performs a validation when the refund is created to review name if different.

25 TRIP – Intercept Process Local governments – sec , Wis. Stats. Refund overpayment processing: DOR intercepts nightly and generates a notice to the taxpayer with agency contact information Debtors are going to receive notice before you will. –DOR updates the balance nightly –Use My Tax Account Debt Summary to review transactions posted to a debt

26 TRIP – Recalls Local governments – sec , Wis. Stats. Overpayment Recalls: DOR may contact you to send proceeds back. –We adjust the debt amount on our end to maintain your debt priority. Reasons for recall –Fraud –Data entry error –Taxpayer error

27 TRIP – Reports Local governments – sec , Wis. Stats. Type of Reports Received. Posting Notification – weekly report available on Wednesday. The report provides the debtor, debt number, and amount intercepted. Proceeds Distribution – weekly electronic deposits available by Monday, with exception for holidays. The proceeds are transferred into the bank account provided by the agency. File Maintenance Response - available the next business day after a Maintenance transaction file is received by the Department. The response tells if the debt was accepted or rejected and provides a reason for rejection.

28 TRIP- Reports Local governments – sec , Wis. Stats. Closed Debt File – monthly report available on the first Tuesday of the month. The report includes the debts closed due to the debt balance below threshold ($20.00) and name/ID mismatch. Agency Summary Report – available on demand through My Tax Account. The report lists all active debtors for an agency. Debt Summary – Use Debt Summary to review transactions and updates posted to a debt.

29 Setoff Hierarchy 2013 Wisconsin Act 20 changes setoff hierarchy - Section 71.93, Wis. Stats. Refunds will be setoff in the following order: 1. Wisconsin Department of Revenue (DOR) administered debts 2. Child support debts referred by DCF 3. SDC debts referred by state agencies 4. SDC debts referred by local governments 5. TRIP debts referred by state agencies 6. TRIP debts referred by local governments 7. Federal government debts 8. TRIP debts referred by Tribal governments 9. Other states’ debts

30 Identifying Information Professional Placement Services (PPS) has been selected to provide debtor identifying information (skip tracing) to our agencies such as a Social Security Number (SSN) or Federal Employer Identification Number (FEIN). For more information please contact PPS directly. PPS Contact Information: Karri Thiesenhusen Tel:

31 Reminders MTA logins or WAMS ID: Agencies may have multiple users, with separate profiles, who have access to your Agency's account. Each user must register individually for MTA or obtain their own WAMS ID if accessing the secure folders(SFTP). Once registered, DOR will provide access to your agency's account. Agency Contact information: If you have had changes to Agency's contact information (debtor contact, phone numbers, addresses, bank information) in the past year please update your Agency Contact information using the form on the TRIP webpage (http://www.revenue.wi.gov/ise/trip/index.html).http://www.revenue.wi.gov/ise/trip/index.html

32 SDC/TRIP How to Register New Customers Registration Procedures –Publications – legislation, policy, and procedures Application to register for TRIP –Bank account forms – new & existing users

33 DOR CONTACTS Contact Information: Use My Tax Account – TRIP, TRIP Inquiry to send questions confidential information. Use to send non- confidential Call to speak with either Corban Gehler or Joseph Mugenga.


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