Pursuant to General Statute 105A, the Setoff Debt Collection Act (SODCA) program allows state and local agencies to file claims with the Department of Revenue for taxpayers’ individual income tax refunds. A debt owed to the university has no statute of limitations.
- The NC Department of Revenue notifies the person with a past due account that the university has a claim against their income tax refund at the time that a refund is seized.
- The amount owed to the university plus a SODCA collection fee is deducted from the individual’s state tax refund.
- The amount owed is then forwarded to the university and the collection fee is retained by the NC Department of Revenue.
- The university will apply the funds received as a payment against the outstanding account balance.
- The university will send a letter to the last known address of the individual informing them that they have thirty days to contest the debt owed to the University.”