Notify debtors ​in writing

• ​At least 30 days before submitting a debt to the SCDOR, you must send a notification letter to the debtor. ​The Setoff Debt Collection Act (SC Code 12-56) outlines the requirements of this notice, including the language that must be used. The SCDOR also provides a letter template that includes the required language from the Code through the GEC-1, Notice Letter to Debtor​. 
• The claimant agency must mail the letter to the address the debtor provided at the time the debt was incurred or to the debtor’s last known address. 
• The SCDOR is responsible for notifying a debtor once collection actions begin. 
• If a debtor’s tax refund is garnished, the SCDOR will mail the taxpayer a Notice of Refund Adjustment. 
• If a debt is being collected through GEAR, the SCDOR sends a notice to the debtor before any collection action.
  
  

Answer debtor questions

Claimant agencies are responsible for communicating with debtors regarding their debt. 

• Accurate contact information must be provided to your debtors on their notification letters. 
• Claimant agencies should be available to answer any questions for debtors regarding the debts submitted for collection. 
• Claimant agency Setoff Debt and GEAR Coordinator contact information is provided on SCDOR notices to debtors. The contact information used for this purpose is pulled directly from the GEC-6, Notice of Participation​ form you submit to enroll in the Setoff Debt and GEAR programs.
  
  

​Address protests timely

The debtor may file a written protest with the claimant agency, using contact information provided in the notification letter issued by the claimant agency. The requirements for the written protest are outlined in section 63 of the Setoff Debt Collection Act (SC Code 12-56-63). 

If you receive a written protest from the debtor, you must:

• Immediately notify the SCDOR of the protest if the debt has been sent to the SCDOR 
• Schedule an informal hearing 
• Notify the debtor of the date, time, and location of the informal hearing using the address the debtor provided in the Notice of Protest 
  

The Hearing Officer your agency appoints is responsible for the informal hearing. At the hearing, the debtor is allowed to present evidence, documents, and testimony as to why the debt is not due. 

Once a decision is made, the agency’s Hearing Officer must submit a GEC-3, Decision of Hearing Officer ​to the SCDOR certifying the determination of the hearing. 

The debtor can appeal the Hearing Officer's decision with the Administrative Law Court as outlined in the Setoff Debt Collection Act (SC Code 12-56).

Debt Submissions 

Claimant agencies are required to validate their debts prior to submission. Once accepted into the program, the SCDOR will notify you and provide account access guidance for GoAnywhere to transmit your files:

• Initial Add Files may be submitted between November 1 and December 1. 
• Claimant agencies may also submit additional Add Files after their initial Add File has been processed; however, files submitted later in the year may miss collectable tax refund offsets. 
• Adjustment files are accepted in January of each respective program year. 
• “D” must be used to remove a debt
• “U” must be used to update or reduce a debt
• Setoff participants may submit Adjustment Files to increase, reduce or remove the amount of a debt referred to the SCDOR. 
• GEAR participants may submit Adjustment Files to only reduce or remove a debt referred to the SCDOR. GEAR debts cannot be increased. If your claimant agency has additional debts they wish to refer for collection, you must submit a new GEAR debt with a different default date. 
  
  

Receiving Payments 

Setoff Debt participants receive payment as a result of the offset to a taxpayer’s Individual Income Tax refund.

• Claimant agencies can expect to receive payments on a weekly basis when money is collected as part of an offset. 
• GEAR participants receive payments as a result of the offset to a taxpayer’s Individual Income Tax refund, payment plan agreements or other enforced collection methods. Claimant agencies can expect to receive payments on a monthly basis if money is collected. 
  

​The SCDOR provides reports to help you review and manage any debts submitted for collection with our agency. 

To access reports associated with your debts and payments, you must have a GoAnywhere account:

• ​GoAnywhere is the SCDOR’s secure file transfer platform for the Setoff Debt & GEAR Programs. GoAnywhere access is only granted to authorized users listed on your GEC-4, Notice of Authorization. 
• Note: Two factor authentication can only be used on your personal smartphone or work assigned smartphone.​
  
• Users should access GoAnywhere regularly to retrieve their reports. Reports expire monthly. 
• If you have not accessed Go Anywhere in three months or more, your account may be disabled. If your account is disabled, email SetoffDebt@dor.sc.gov to have your account reactivated and password reset.