Let SCDOR Put Your Accounts in GEAR
Governmental Enterprise Accounts Receivable Collections
S.C.. Code § 12-4-580(A):
The department [SCDOR] and any other governmental entity may contract to allow the department to collect any outstanding liabilities owed the governmental entity
Governmental Enterprise Accounts Receivable Collections (GEAR) is the collection service performed by the Department of Revenue on behalf of other political entities throughout the State as authorized by S.C. Code § 12-4-580 (enacted in 1996). Put Your Accounts in GEAR.
- The GEAR program is administered similar to DOR's existing individual income tax refund offset program.
- Governmental entities can opt to use refund offset, GEAR, both services, or neither service. We don't want to take over your accounting process; we just want to help you collect the overdue amounts that drain your resources.
- Collecting governmental debt with a customer service focus is a core competency of the S.C. Department of Revenue. We're good at what we do.
- There is no "bad guy" with GEAR. Governmental entities need not deal with uncooperative debtors, and DOR's staff is extensively trained to provide excellent customer service.
- Governmental entities can lighten administrative burden on their overworked staffs by using DOR's "one stop shop" for all offset and collections functions.
- DOR's fee for the service is competitive.
- DOR'S initial collection rate with GEAR has been 11% to 28.5%, depending upon the debt type. We anticipate this rate to increase as GEAR progresses.
- With GEAR, governmental entity debt becomes treated just like any DOR tax debt, subject to the same collection tools available to DOR such as levy and garnishment.
- Subject to the statutes of limitations, any age debt can be submitted to GEAR at the same reasonable rate.
Unpaid Accounts Hurt Our Citizens.
- Funds: It's estimated that there are $1.4 billion in unpaid accounts for SC's governmental entities.
- Inefficiency: Currently, 400+ governmental subdivisions conduct the same function with separate employees collecting accounts.
- Inequity: Some are not paying their fair share forcing the responsible taxpayers to make up the balance.
- Noncompliance "spillover" effect: Overall compliance suffers when citizens perceive collection efforts to be uneven.
How do you sign up?
We'll be happy to put your accounts in GEAR.
Contact any of the following for more information:
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