Frequently Asked Questions
due process and notification
1. Can or should a local government publicize their intent to participate in the debt setoff program?
Yes, we encourage you to "get the word out" with press releases or other means so local debtors will be aware of the potential that their tax refund or lottery winnings may be setoff.
2. Is a local government required to notify the debtor in writing about their intent to submit debt(s) against their tax refund and/or lottery winnings?
Yes, a letter must be sent to their last known address, even if the local government knows the debtor has moved and the letter will be returned.
3. Does the notification letter need to be sent by certified mail?
No, legislation states that it only be sent using regular U.S. mail.
4. What if a local government doesn't have the correct address for a debtor that needs a letter of notification?
Legislation requires that a letter only be sent to the last known address. In the event of an appeal you want to be able to prove that you sent it to the last known address according to your records. Whether the letter is returned as undeliverable or not is irrelevant.
5. Does a local government have to retain anything to prove that notification letters were sent?
Yes, we recommend the local government keep some type of electronic or hardcopy proof of your mailings to debtors in the event of an appeal by the debtor. Retain this information according to the state regulations associated with retention of public documents.
6. Can a third-party administrator send the notification letters on behalf of a local government?
Yes, a third-party company can send letters on a local government's behalf. Just have them keep a record of all debtors they sent letters in the event of an appeal. However, it must use the letterhead and contact information of the local government, not the third-party administrator.
7. Can a third-party administrator list their contact information and phone number on the notification letters?
No, all information on the letter must refer to the local government, not the third-party.
8. Can a local government send notification letters to any or all debtors without actually sending the debts to the Clearinghouse?
Yes, a local government can send letters without submitting the data to the Clearinghouse. Many local governments have received tremendous response and payments just on the notification letters. However, since you've gone to the expense of the mailing costs for notification, we suggest you proceed with the submission to the Clearinghouse for even further recovery of these outstanding debts.
9. What are the requirements for describe the debt(s) in the notification letter?Legislation states that each debt must be described in detail. Each debt must list the type of debt and the amount. The debts cannot be summed into one total debt amount. We suggest listing the department, such as Tax, EMS, Utilities, Health, etc. and the account number.
10. Are there any sample notification letters?
Below are several sample letters (all in Microsoft Word
and PDFs) - updated September 2010 - previous versions invalid
11.
Are there any instructions for doing a mail merge of debtors in the client software? Version 2007 - view this instruction guide using Microsoft 2003 and the client software.
It will work with Office 2007 but there are some slight screen differences. Call
the Clearinghouse for support. Version 2011 has letter generation built into the software, no mail merge is required.
12. Will the Clearinghouse assist
in creating the notification letters?
Yes, the Clearinghouse will take your information in one of three formats: 1) our client software, version 2007; 2) ASCII file; 3) Excel file. We will do a mail merge
and return the letters to you electronically. We do NOT put the Social Security Number in the letter so we can send you the merged letters via email or place in your assigned secure folder.
We will also assist you in creating the letter content from our samples and archives of letters other local governments have used. For users of our client software version 2011, we will also connect remotely to to assist in generating
letters and/or a pdf file for proof of print.
13. Is there any cost for the Clearinghouse to assist
in creating the notification letters?
No, the Clearinghouse will only create the merge file (version 2007) or connect remotely and assist in printing at your location (version 2011). The local government will print on their printer using their letterhead, envelopes and postage.