Maximize your collection Maximize your collection effortsefforts

Agency Collection ProgramsAgency Collection Programs

Maximize your collection Maximize your collection effortsefforts

Agency Collection ProgramsAgency Collection Programs

Updates/NewsUpdates/News

Fiscal year July 1st to June 30th (As of March 31st)

SDC ProgramSDC Program

Sec. 71.93(8), Wis. Stats.

•State agencies are required

•Local governments may participate

SDCState Debt Collection Program

Agency CollectionsAgency Collections

The difference between SDC and TRIP is that DOR becomes collector of the SDC debt.

Agency must stop all collections

SDCState Debt Collection Program

Agency CollectionsAgency Collections

DOR uses same authorities as individual income tax collections:•Payment plan

•Wage attachment

•Financial institution levy

•Refund offset

SDCState Debt Collection Program

SDC ProgramSDC Program

Debts to refer

•Debt balance > $100

•Debt amount must be final

•Aged at least 90 days

•Debtor has not paid, or entered into payment plan.

SDC ProgramSDC Program

Referral Notice

•Similar to TRIP notice

•30 days prior to referral

•Provide opportunity for debtor to resolve the debt.

SDC ProgramSDC Program

Collection Fee

•Debtor is assessed the fee

•Fee = 15% ($35 minimum) of amount referred

•Fee is satisfied first by statute

SDC ProgramSDC Program

Interest•If your debt has interest, then DOR will assess monthly at the rate you specify

•After fees are satisfied, payments are applied to interest, then debt amount.

SDC ProgramSDC Program

Debt balances and updates to debt•Adjust debt balance either up or down, only if the amount originally sent was in error

•Collection fee, and interest automatically adjust based on new balance

SDC ProgramSDC Program

Debt Recall•Use if the debt was sent in error

•DOR sends back the remaining balance

SDC ProgramSDC Program

Payments received by agency•If you receive a payment by check – send the check to DOR

•If you receive an electronic payment – contact us. We will work out the easiest method to resolve.

NOTE: If you receive the payment after referral – DOR's collection fee is still due.

SDC ProgramSDC Program

Reports•Agency Summary

Complete listing of active debtorsBankruptcy infoCurrent balanceCollections to dateCollection stage

SDC ProgramSDC Program

Reports•Return debt

Listing of debts we are returning to your agency.

Return reasons include: Satisfied, uncollectible, deceased.

SDC ProgramSDC Program

Reports•Payments

Monthly distributionAmounts collected by debtor reportPayments are sent by ACH 3

business days after payment report

SDC CoordinatorSDC Coordinator

To enroll in SDC program, please contact joseph.mugenga@revenue.wi.gov or 608-264-0344

to obtain:-Agency agreement-Banking information form

For more information about SDC program, please review: •SDC User Guide•MTA-SDC User Guide•http://www.revenue.wi.gov/html/debtcoll.html

TRIP ProgramTRIP Program

Local governments – sec. 71.935, Wis. Stats.

•Definition of DEBT – "…and any other debt that is at least $20…"

• Debt Amount - Each debt must stand on it's own as $20.– You cannot add up 4 debts of $5 to

make the $20 requirement.

– You can add 5 debts of $20 to certify as $100.

TRIP Program TRIP Program

Local governments – sec. 71.935, Wis. Stats.

•Definition of DEBTOR – "…owes a debt to a municipality or county."

•Note – restitution may be certified as long as it is owed to the local government. It cannot be certified if it is owed to the victim.

TRIP ProgramTRIP Program

Local governments – sec. 71.935, Wis. Stats.

•Reasonable notice & opportunity – the debtor must be provided with notice that they owe the assessment.

•Debtor notice – Within 5 days a notice of certification letter must be sent to the debtor.

– To last known address

TRIP – Program TRIP – Program

Local governments – sec. 71.935, Wis. Stats.

•Debt balance must be greater than $20.00.– When a debt balance falls below $20 we will close the debt for

collection.

•Refund amounts of greater than $10.00 will be set off against debts.

•There is a $5.00 fee to the debtor for each setoff.

TRIP ProgramTRIP Program

Local governments – sec. 71.935, Wis. Stats.

•Keep balances current.– If a debtor pays you, update the amount in TRIP

right away. DOR intercepts refunds all year around.

– Request Agency Summary frequently•Monthly interest updates are allowed.

•Certify each debt as new.– You cannot add to debt balances other than for

interest.

TRIP – TRIP – Debtor informationDebtor information

Local governments – sec. 71.935, Wis. Stats.

Debts are certified with:•Social Security Number (SSN)

•Driver's License Number (DLN)

•Federal Employer Identification Number (FEIN)

•Note: If you do not have one of the three types above, you may need to hire a collection agency to locate the identifier for you.

TRIP – TRIP – Debtor information Debtor information

Local governments – sec. 71.935, Wis. Stats.

Name matching:•If SSN exists in tax system:

– First four of last name, if that does not match, then first four of first name to catch marital status changes.

– If Name/ID mismatch use TRIP Inquiry to request validation. Sometimes the tax history is wrong.

•Set up if SSN does not exist in tax system•DOR performs a validation when the refund is created to review name if different.

TRIP – TRIP – Intercept ProcessIntercept Process

Local governments – sec. 71.935, Wis. Stats.

Refund overpayment processing:•DOR intercepts nightly and generates a notice to the taxpayer with agency contact information

•Debtors are going to receive notice before you will.

– DOR updates the balance nightly

– Use My Tax Account Debt Summary to review transactions posted to a debt

TRIP – TRIP – Recalls Recalls

Local governments – sec. 71.935, Wis. Stats.

Overpayment Recalls:

•DOR may contact you to send proceeds back.

– We adjust the debt amount on our end to maintain your debt priority.

•Reasons for recall– Fraud– Data entry error– Taxpayer error

TRIP – TRIP – ReportsReports

Local governments – sec. 71.935, Wis. Stats.

Type of Reports Received. •Posting Notification – weekly report available on Wednesday. The report provides the debtor, debt number, and amount intercepted.

•Proceeds Distribution – weekly electronic deposits available by Monday, with exception for holidays. The proceeds are transferred into the bank account provided by the agency.

•File Maintenance Response - available the next business day after a Maintenance transaction file is received by the Department. The response tells if the debt was accepted or rejected and provides a reason for rejection.

TRIP- Reports TRIP- Reports

Local governments – sec. 71.935, Wis. Stats.

•Closed Debt File – monthly report available on the first Tuesday

of the month. The report includes the debts closed due to the debt

balance below threshold ($20.00) and name/ID mismatch.

•Agency Summary Report – available on demand through My

Tax Account. The report lists all active debtors for an agency.

•Debt Summary – Use Debt Summary to review transactions and

updates posted to a debt.

Setoff HierarchySetoff Hierarchy

2013 Wisconsin Act 20 changes setoff hierarchy - Section 71.93, Wis. Stats. Refunds will be setoff in the following order:

1. Wisconsin Department of Revenue (DOR) administered debts

2. Child support debts referred by DCF

3. SDC debts referred by state agencies

4. SDC debts referred by local governments

5. TRIP debts referred by state agencies

6. TRIP debts referred by local governments

7. Federal government debts

8. TRIP debts referred by Tribal governments

9. Other states’ debts

Identifying InformationIdentifying Information

Professional Placement Services (PPS) has been selected to provide debtor identifying information (skip tracing) to our agencies such as a Social Security Number (SSN) or Federal Employer Identification Number (FEIN). For more information please contact PPS directly.

PPS Contact Information:

Karri Thiesenhusen

Tel: 877-220-4106

Email: skip@paypps.com

RemindersReminders

• MTA logins or WAMS ID: Agencies may have multiple users, with separate profiles, who have access to your Agency's account. Each user must register individually for MTA or obtain their own WAMS ID if accessing the secure folders(SFTP). Once registered, DOR will provide access to your agency's account.

• Agency Contact information: If you have had changes to Agency's contact information (debtor contact, phone numbers, email addresses, bank information) in the past year please update your Agency Contact information using the form on the TRIP webpage (http://www.revenue.wi.gov/ise/trip/index.html).

SDC/TRIP SDC/TRIP How to RegisterHow to Register

www.revenue.wi.gov •New Customers Registration Procedures

– Publications – legislation, policy, and procedures

• Application to register for TRIP

– Bank account forms – new & existing users

DOR CONTACTSDOR CONTACTS

Contact Information:

•Use My Tax Account – TRIP, TRIP Inquiry to

send questions confidential information.

•Use trip@revenue.wi.gov to send non-

confidential questions.

•Call 608-264-0344 to speak with either

Corban Gehler or Joseph Mugenga.