CSAC Bulletin Article

CalTRECS FTB Program Resumes

July 29, 2021

The California Franchise Tax Board has announced the resumption of the tax refund intercept program will begin on August 1, 2021. CalTRECS, a CSAC Finance Corporation debt offset program, can aid counties and municipalities in refund-intercept for revenue recovery.

Refund intercept programs are beneficial for Counties and consumers in several ways:

  • First, there is no reporting to credit agencies unlike most. Therefore, a person who cannot pay their debts is not affected negatively on their credit score.
  • Second, debts can be fully satisfied without any action on the part of the debtor.
  • Third, the debt is only paid when there is a revenue event available for intercept.
  • Fourth, tax-refund intercept programs can be used as an alternative to tax sale, suspension of utilities, wage/bank account garnishment, license plate withholdings, or utilization of a private collection agency that may charge higher collection fees.

It is important to note that all tax-refund intercept programs across the country require giving ample notice and due process to allow the debtor to come in, contest or appeal a debt, set up an installment plan, or make another arrangement with the claimant agency prior to refund intercept.

Most of the time, the debts going through the state intercept programs have been delinquent for many years, the debtor has been noticed on more than one occasion, and perhaps the claimant agency has even gone through other collection mechanisms that have not succeeded in collecting on the debt.

For more information, or for interest in participating in CalTRECS, please reach out to Jim Manker, with the CSAC Finance Corporation.

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