1. David Bottorff Executive Director Association of Indiana Counties
Association of Indiana Counties TRECs Tax Refund Exchange and Compliance System
David Bottorff
Executive Director
Association of Indiana Counties

2. 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

3. Step 1
County Treasurer determines they would like to participate in TRECs
Obtains a green light from the county commissioners
Completes registration form and executes MoU
Notifies county’s financial software vendor of intent to participate

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

5. Step 3 County Submission Submits appropriate records through SFTP
County submits new candidates as needed
Reconciles paid debts by updating amount-owed to 0

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

7. Step 5 IDOR Sets off debts from matches Distributes $ to TrustINdiana
Submits offset letter to debtors

8. Step 6
Clearinghouse
Directs TrustINdiana on County Account dispursement
Notifies Counties of monies-collected and deposited
Sends Counties reconciliation file for upload

9. AIC TRECs Local Government Clearinghouse Process
Claimant agency registers to participate beginning and executes MoU
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 scrubs data, provides SSN lookup, & submits to IDoR
IDoR checks claims for refund via debtor SSN & name, holds matching refunds & notifies Clearinghouse
Clearinghouse sends notification to matched debtors and waits contestation period of 30 days
Clearinghouse sends final setoff requests to IDOR
IDoR sets off debt & notifies debtor of action, including IVR service number for claimant agency contact
IDoR submits file to clearinghouse of matches for reconciliation
IDoR credits funds to claimant agencies via TrustINdiana which distributes funds under Clearinghouse direction
Clearinghouse transmits files to county for import into financials

10. 28% Marion County Pilot End Result (4,057 Matches)
$1.04 Million+ Eligible for Collection
2x Best Year Match Rate in NC Program

11. BENEFITS TrustINdiana Increased members/assets Relationship-building
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
Counties/Local Govt Agencies
Monies-owed obtained easily and efficiently
Builds relationship with state association
Previously uncollectable debt collected
BENEFITS
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
FSCAIC
Revenue for the organization
Builds relationship with members

12. Association of Indiana Counties
Thank You!
David Bottorff
Executive Director
Association of Indiana Counties