The CSAC Finance Corporation has joined with the National Association of Counties Financial Services Center (NACo FSC) to develop the California Local Government Debt Offset (CalTRECS) program to help counties collect outstanding debts in a timely, cost-effective manner. The CalTRECS debt offset service allows counties and other local governments to compile and submit their delinquencies of $10 or more for offset against pending state personal income tax refunds and lottery winnings.
In concert with the CSAC Finance Corporation, NACo FSC provides and maintains the centralized automation and back office systems needed to transmit and process debts through the California Franchise Tax Board (FTB). Services include a SSN lookup and validation function, an automated voice response system for debtor queries, and a toll-free helpline for technical assistance to the counties.
This program will improve collection efficiencies for those counties currently using the FTB offset service and can assist those counties not using the service to maximize debt collection through offset. CalTRECS will act as a vendor on behalf of the county to receive and process debts through the FTB’s existing offset program.
The local government bears no additional costs for this service—the local government imposes a $25 local collection assistance fee on the debtor and CalTRECS will add the $25 to the debt amount if an offset occurs.
Please contact Jim Manker, CSAC FC Director of Business Development, for more information and to enroll in the program. 916-650-8107 Email Jim
Please also see below for important information about the program.
Talking Points For Consideration of Participation in AIC TRECs Debt Setoff Program
Debt Clearinghouse Submission Debt File Format (the required format to submit initial and refreshed debt files) – Document 1
Debt Clearinghouse Submission Debt File Format (the required format to submit initial and refreshed debt files) – Document 2
Debt Clearinghouse Submission Debt File Format (the required format to submit initial and refreshed debt files) – Document 3
CSAC FC Debt Offset Memorandum of Understanding December 2019
CalTRECS California Sample Letter
CalTRECS Letter Service Agreement
FTB Intent to Participate Form 2280PC
FTB Initial Request to Participate Form 2282PC
FTB Debtor Notice Sample Form 2288
FTB Vendor/Contractor Confidentiality Statement Form 7904
Link to FTB Offset Participation Guide
CalTRECS Debt Offset Program Operation
The following link will redirect you to the CalTRECS secure debt offset file site. Click on the link when you are ready to upload your debt file for processing or to download processed files.
For those who have had their state payments intercepted, please call 877-668-4757.