Debt Setoff

Local Government Delinquent Debt Setoff Program

The North Carolina Association of County Commissioners (NCACC) and the North Carolina League of Municipalities (NCLM) sponsor a debt setoff joint clearinghouse through which local governments may submit any outstanding delinquent debt (totaling $50 or more) through the clearinghouse to the North Carolina Department of Revenue to attempt to offset delinquent debts against individual state income tax refunds or winnings from the North Carolina Education Lottery.

The program, authorized by the General Assembly and administered by Five Star Computing in Columbia, South Carolina, offers another collection method for outstanding debts to counties, cities and other local agencies, such as water and sewer authorities, joint regional agencies, public health authorities and sanitary districts.

How to Join

Counties, cities and authorities wishing to join the clearinghouse must execute the Memorandum of Understanding and Agreement and file all applicable implementation forms to participate. All participants must complete a participation form each year. Visit the North Carolina Local Government forms webpage to access the letters and forms.

​Technical Assistance

Please visit to find resources and training materials related to the Debt Setoff program.