INDIANAPOLIS -- IUPUI is trying a new approach to recoup more than $11 million in old debt, and it involves going after former students’ tax refunds.
Yoskisha Rollins checked the status of her tax return and was shocked to see IUPUI put a hold on $306 of it.
“I was taken back,” said Rollins.
Rollins hadn’t attended IUPUI since 1996.
“That’s crazy for them to come back after 20 years and say ‘hey your file was in this archive of information and we’re going to take your tax return,’” said Rollins.
Most of the old debt involves tuition and housing, according to IUPUI Bursar Dan Youngblood.
Rollins contacted IUPUI and told them she doesn’t have any debt.
“They researched and researched and researched and were unable to actually link the debt to anything valid, so in my case they are making it a zero balance and releasing the hold,” said Rollins. “However, there’s probably someone out there that might not know the right steps to take.”
This is the first year IUPUI has tried this approach, however, other schools like Purdue and Ivy Tech have been using the “tax offset” program for years.
“This is a last resort,” said Youngblood. “Most of these former students should have gotten a lot of contacts from us or one of our agents over the years saying they owe money.”
More than 882 taxpayer refunds are impacted this year, according to IUPUI, and so far it’s working to get people’s attention.
“We’ve gotten a lot of contacts from former students recently,” said Youngblood.
Youngblood does not want anyone to panic if they receive a hold on their tax refund or a letter in the mail from IUPUI.
“Just because you get that notification letter does not mean I am going to take your money,” said Youngblood. “”As long as we can get some sort of resolution to address the debt, we don’t necessarily need to take all or event part of a refund. Probably the worst thing that can happen is to not contact us because that means I am going to be intercepting their refund from now on until that debt is paid in full.”
Youngblood said the average debt is about $4,000.
“If we can legitimize the debt and get some payments on it, then that helps add to the mission of the university,” said Youngblood. “It helps give us research dollars, we can provide more community support, all the things IUPUI is here to do.”
Youngblood said while the university keeps records for decades, it can be difficult for consumers to prove they paid a bill 20 years ago.
“The main thing is, give us a call and tell us what you know,” said Youngblood.
Universities have a formal appeal process if you feel you did pay your bills in full.
If you have a question about a debt with IUPUI you can email bursar@iupui.edu or call 317-274-2451.
According to the Indiana Department of Revenue, 10 universities and 7 state agencies are participating in the tax offset program, which typically collects about $20 million a year.
Breakdown of total offset amounts by year (excluding IRS offsets)
