New program hopes to recoup state-owed debts
BATON ROUGE - The state Department of Revenue announced it's working on a new program to collect money owed to the state by intercepting federal payments.
The Federal-State Offset Program would let them take money out of federal payments to vendors or contractors with outstanding, non-tax debts owed to the state. They estimate it will collect about $11 million a year.
A state agency could submit delinquent debts to the program only after "extensive efforts" to collect. The program will match those debts to a federal database of taxpayers, vendors and contractors owed refunds or payments by the federal government, and if a match is found the program will claim those monies and forward them to the state agency to cover the debt.
The Department of Revenue is still working out how to implement the program, and didn't give a timeline for when it would go into effect.
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