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Email
SetoffDebt@dor.sc.gov

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Setoff Debt & GEAR​ for claimant agencies

Before registering for either program, organizations must identify if they are a governmental or quasi-governmental entities as outlined in the Setoff Debt Collection Act​ (SC Code 12-56-20).​

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Setoff Debt
GEAR
​Collection methods*
​South Carolina Individual Income Tax refund offsets
​South Carolina Individual Income Tax refund offsets, wage levies, tax liens, bank account levies, license revocations, and payment plans
​Allows debtor to ​set up payment plan
​No
​Yes
​Debt limitation
​$25 and above
​$50 and above
Cost to claimant agency
​$0
​22% fee of each payment collected (excluding refund offsets)​
Cost to debtor​
​$25 fee for refund offsets​​
$25 fee for refund offsets​​
​​​*​Claimant agencies can join both programs. However, the same debt cannot be submitted to both​ programs.

​Program Timeline

Claimant agencies must reapply to the programs each year by August 31 to be approved to participate in the following year. Whether you are registering your agency for the first time or need to reapply, you must submit a Notice of Participation (GEC-6) and Notice of Authorization (GEC-4) to SetoffDebt@dor.sc.gov

To have the most success with collection offsets of State Individual Income Tax refunds, it is recommended that you follow the registration ​​timeline.

​​​​Setoff Debt and GEAR​ run on an annual basis each calendar year.
​Ju​l​y 15
Claimant agencies c​an send their GEC-6 and GEC-4​ forms to SetoffDebt@dor.sc.gov.
Forms must be submitted by August 31.​
August 31
​Program registration closes
​November 1
​Approved claimant agencies can send their initial add files through GoAnywhere to upload their debts to SCDOR for collection. 
December 1
​​Initial add file period closes
January ​1​
​Claimant agencies can send adjustment files to remove or change debt balances included in their initial add file. Claimant agencies may also submit new debtors to the program with additional add files after January 1.
  • Setoff Debt – Claimant agencies can adjust the initial debt to include additional debts, reduce debts, or remove debts. 
  • GEAR – Claimant agencies cannot increase debt amounts if participating in the GEAR Program. If new debts occur, claimant agencies may submit additional add files with a different default date.

​How long do debts stay in the system?

Setoff Debt debts expire December 31 of each year and must be resubmitted for further collection.

GEAR debts remain in the system until the balance is paid in full or removed by the claimant agency. If there's been no successful collection attempts within 5 years of the date of submission, GEAR debts are removed from the system.​




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