Creditor Agencies - Payments
No, federal income tax refunds are not currently matched against debts in KTOP. However, it is possible that federal regulations could change in the future, allowing KTOP to match debts against tax refunds.
Currently, the federal statutes governing the reciprocal program only allow TOP to match State debts against federal vendor payments. Federal payments that do not qualify for offset include income tax refunds, salaries, railroad retirement benefits, and social security benefits.
For a full list of exempt payments, please click here.
When a collection is made on a debt, the reduction will automatically be posted in KTOP. In KDRS, the reduction will appear with a Transaction Type of "KTOPRED".
KTOP will perform transfers of funds to creditor agencies each Friday. (If a state observed holiday falls on a Friday, the transfer will occur on the first business day thereafter.) Prior to the interfund being created, the creditor agency's transfer contact will receive an email with an attachment listing all the collections made that will be included in the transfer.
Alternately, at any time creditor agencies can view collections that have not yet been transferred by following the "Verify Upcoming Transfers" instructions in the KTOP User Manual.
Collection transfers are made to payor agencies every Friday. (If a State observed holiday falls on a Friday, the transfer occurs on the first business day thereafter.) On the following Monday, KTOP staff will email the creditor agency transfer contact with the SMART Interfund ID associated to the transfer.
The creditor agency transfer contact is responsible for notifying the appropriate individual within their agency to complete and approve the accounts receivable portion of the interfund. If this is not done within a week, the creditor agency transfer contact will receive an "Outstanding Unconfirmed Transfer Notification" email daily until the interfund is completed.
