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

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 Obtains a green light from the county commissioners Completes registration form and executes MoU Notifies county’s financial software vendor of intent to participate

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

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

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

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

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

AIC TRECs Local Government Clearinghouse Process Claimant agency registers to participate beginning 9.25.17 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

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

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

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