Debt Setoff Unit
The Setoff Unit is located within the Distribution Unit. We work with approximately 156 agencies in North Carolina on a daily basis. Below is a summarization of our process:
- All participating agencies send NCDOR an updated list of their debtors on a regular basis.
- When a debtor files their tax return to claim their refund with NCDOR, we capture the refund and send the portion that is their debt to the agency. Depending on the situation, we may be able to send the entire debt to the agency or only a portion. This depends on the total amount of debt the taxpayer has to the agency and/or the amount of refund the taxpayer has with NCDOR. This will also depend on if the tax return was filed as a married filing joint return.
- When NCDOR sends the agency money for a taxpayer or the taxpayer has paid money on their account with the agency, the agency must send NCDOR an updated debt for that taxpayer. This is to ensure that NCDOR has the most recently updated debtor information.
- We receive this information and download any new information received every Tuesday.
- We transfer all monies that we offset to all affected agencies on a biweekly report.
If you have any questions regarding debt owed to an agency, please contact the agency. NCDOR does not have information other than the amount due.