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The
Setoff Debt Collection Act,
Chapter 56 of Title 12 of the South Carolina Code (1976), authorizes
public entities to participate in the state's Setoff Debt Collection
Program. Using
a 1992 amendment to the Setoff Debt Collections Act, SCAC has been
assisting county governments and other county entities to participate in
the Setoff Debt Collection Program.
County entities submit delinquent debts to SCAC for possible matches
against state income tax refunds due their debtors. SCAC acts as a
clearinghouse between county governments and the S.C. Department of
Revenue for the processing of these debts and returns the money to the
counties. Monies, which otherwise would have gone uncollected, are
returned to the counties this way.
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SCAC Services are FREE to
participating entities. Fees are added to the debt for
SCAC and the SC Department of Revenue and paid by the debtors. |
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Entities must have valid Social
Security Numbers for individuals to submit an account. |
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Debts must be at least $50, or
multiple accounts must sum to $50, to be submitted to the Setoff
Debt
program. |
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There is a one-time placement
of debts into the Setoff Debt program each year.
SCAC sends the data files to the SC Department of Revenue each
December. |
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Entities must follow due
process procedures for debtors, as defined in the statute (see
Setoff Debt
Collection Act). Entities must provide notice and an
opportunity to be heard to debtors. |
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Entities must meet the
deadlines for sending letters and submitting their data file.
(See Dates to Note.) |
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Any age debt can be submitted to Setoff. |
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After January 1, the SC Department of Revenue
matches the data in the debt files with the state income tax
returns. SCDOR processes three matches a week from January
through June and one match a week from July through December. |
Last Updated:
11/20/2008
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