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Tax Refund Intercept Program (TRIP) - UI Benefit Payment Control (BPC) - Unemployment Insurance

Pursuant to an agreement, effective September 1, 1995, between the Secretaries of the Department of Budget and Management and the Maryland Department of Labor, in accordance with the provision of 3-302(b) of the State of Finance and Procurement Article, and the Code of Maryland Regulations 17.01.02, the Central Collection Unit is authorized to certify to the Income Tax Division, Comptroller of the Treasury, the names of those who are indebted to the State of Maryland/Maryland Department of Labor or any of its agencies.

Simply stated: any debt of one year old or greater, that has not already been transferred to the Central Collection Unit and is not under current appeal and whose debtor has made little or no effort to repay, will be certified for State income tax refund interception. Any State tax refund payment due to a claimant that has an outstanding debt will be intercepted and applied to that debt in accordance with the agreement stated above. The Maryland State Central Collection Unit (CCU) has oversight of this process and charges the debtor a ten percent (10%) collection fee of any account certified for this interception.

Example: if an individual is entitled to a $1000 State tax refund and has a outstanding debt of $500 to the State of Maryland/Maryland Department of Labor, $550 will be intercepted from the $1000. $50 will go the CCU, and $500 will go to the Maryland Department of Labor to repay the debt owed.