1999 Tax Law Changes - Debt Set-Off


G.S. 105A - Setoff Debt Collection Changes: Chapter 105A was rewritten in 1997 to make the following changes, which take effect January 1, 2000:

  • Allow local government agencies to file claims for setoff of individual income tax refunds.
  • Require all State agencies to submit debts for setoff unless the State Controller waives the requirement for that agency.
  • Shift liability for the collection assistance fee retained by the Department of Revenue from the claimant agency to the debtor, except for child support arrearages.
  • Make the setoff process automatic within the Department of Revenue if a claim has been filed and the claim and refund available for setoff is $50 or more.

(Effective January 1, 2000, for income tax refunds determined on or after that date; SB 39; s. 1, S.L. 97-490.)