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PART TAX REFUND OFFSET

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									                                                                   § 30.34                                                        45 CFR Subtitle A (10–1–09 Edition)

                                                                     (1) Immediately terminate the use of                    debts to Justice for litigation, certified
                                                                   any administrative collection activi-                     copies of the documents that form the
                                                                   ties to collect the debt;                                 basis for the claim should be provided
                                                                     (2) Advise Justice of the collection                    along with the CCLR. Upon its request,
                                                                   activities utilized to date, and their re-                the original documents will be pro-
                                                                   sult; and                                                 vided to Justice.
                                                                     (3) Refrain from having any contact
                                                                   with the debtor and direct all debtor                     § 30.36     Minimum amount of referrals.
                                                                   inquiries concerning the debt to Jus-                       (a) Except as in paragraph (b) of this
                                                                   tice.                                                     section, claims of less than $2,500 ex-
                                                                     (e) After referral of a debt under this
                                                                                                                             clusive of interest, penalties, and ad-
                                                                   subpart, the Secretary shall imme-
                                                                                                                             ministrative costs, or such other
                                                                   diately notify the Department of Jus-
                                                                                                                             amount as the Attorney General may
                                                                   tice of any payments credited by the
                                                                                                                             prescribe, shall not be referred for liti-
                                                                   Department to the debtor’s account.
                                                                   Pursuant to 31 CFR 904.1(b), after refer-                 gation.
                                                                   ral of the debt under this subpart, Jus-                    (b) The Secretary shall not refer
                                                                   tice shall notify the Secretary of any                    claims of less than the minimum
                                                                   payment received from the debtor.                         amount unless:
                                                                                                                               (1) Litigation to collect such smaller
                                                                   § 30.34 Claims Collection Litigation                      amount is important to ensure compli-
                                                                        Report.                                              ance with the policies and programs of
                                                                      (a)(1) Unless excepted by Justice, the                 the Department;
                                                                   Secretary will complete the CCLR, ac-                       (2) The claim is being referred solely
                                                                   companied by a signed Certificate of                      for the purpose of securing a judgment
                                                                   Indebtedness, to refer all administra-                    against the debtor, which will be filed
                                                                   tively uncollectible claims to the De-                    as a lien against the debtor’s property
                                                                   partment of Justice for litigation.                       pursuant to 28 U.S.C. 3201 and returned
                                                                      (2) The Secretary shall complete all                   to the Department for enforcement; or
                                                                   of the sections of the CCLR appropriate                     (3) The debtor has the clear ability to
                                                                   to each debt as required by the CCLR                      pay the claim and the Government ef-
                                                                   instructions, and furnish such other in-                  fectively can enforce payment, with
                                                                   formation as may be required in spe-                      due regard for the exemptions avail-
                                                                   cific cases.                                              able to the debtor under State and Fed-
                                                                      (b) The Secretary shall indicate                       eral law and the judicial remedies
                                                                   clearly on the CCLR the actions that                      available to the Government.
                                                                   the Department wishes Justice to take                       (c) The Secretary should consult with
                                                                   with respect to the referred debt. The                    the Financial Litigation Staff of the
                                                                   Secretary may indicate specifically                       Executive Office for United States At-
                                                                   any of a number of litigation activities                  torneys in Justice prior to referring
                                                                   which Justice may pursue, including                       claims valued at less than the min-
                                                                   enforced collection, judgement lien                       imum amount.
                                                                   only, renew judgement lien only, renew
                                                                   judgement lien and enforced collection,
                                                                   program enforcement, foreclosure only,                        PART 31—TAX REFUND OFFSET
                                                                   and foreclosure and deficiency judg-
                                                                   ment.                                                     Sec.
                                                                      (c) The Secretary also shall use the                   31.1 Purpose and scope.
                                                                   CCLR to refer a debt to Justice for the                   31.2 Definitions.
                                                                   purpose of obtaining approval of a pro-                   31.3 General rule.
                                                                                                                             31.4 Certification and referral of debt.
                                                                   posal to compromise the debt, or to
                                                                                                                             31.5 Notice.
                                                                   suspend or terminate administrative
                                                                                                                             31.6 Review of Departmental records.
                                                                   collection activity of the debt.
                                                                                                                             31.7 Review of a determination that a debt
                                                                   § 30.35 Preservation of evidence.                             is past-due and legally enforceable.

                                                                      The Secretary will maintain and pre-                     AUTHORITY: 31 U.S.C. 3720A, 31 CFR 285.2,
                                                                   serve all files and records that may be                   E.O. 12866, E.O. 13258.
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                                                                   needed by Justice to prove the Depart-                      SOURCE: 68 FR 70445, Dec. 18, 2003, unless
                                                                   ment’s claim in court. When referring                     otherwise noted.

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                                                                   Department of Health and Human Services                                                             § 31.2

                                                                   § 31.1 Purpose and scope.                                 dividual, entity, organization, associa-
                                                                      (a) Purpose. This part prescribes the                  tion, partnership, corporation, or State
                                                                   Department’s standards and procedures                     or local government or subdivision, ex-
                                                                   for submitting past-due, legally en-                      cept another Federal agency.
                                                                   forceable debts to the Department of                        Debtor means an individual, organiza-
                                                                   the Treasury for collection by tax re-                    tion, association, partnership, corpora-
                                                                   fund offset.                                              tion, or State or local government or
                                                                      (b) Authority. These standards and                     subdivision indebted to the Govern-
                                                                   procedures are authorized under the                       ment, or the person or entity with
                                                                   tax refund offset provision of the Def-                   legal responsibility for assuming the
                                                                   icit Reduction Act of 1984, as amended                    debtor’s obligation.
                                                                   by the Debt Collection Improvement                          Department means the Department of
                                                                   Act of 1996, codified at 31 U.S.C. 3720A,                 Health and Human Services, and each
                                                                   and the implementing regulations                          of its Operating Divisions and regional
                                                                   issued by the Department of the Treas-                    offices.
                                                                   ury at 31 CFR 285.2.                                        Evidence of service means information
                                                                      (c) Scope. (1) This part applies to all                retained by the Department indicating
                                                                   Departmental Operating Divisions and                      the nature of the document to which it
                                                                   Regional Offices that administer a pro-                   pertains, the date of mailing of the
                                                                   gram that gives rise to a past-due non-                   document, and the address and name of
                                                                   tax debt owed to the United States,                       the debtor to whom it is being sent. A
                                                                   and to all officers or employees of the                   copy of the dated and signed written
                                                                   Department authorized to collect such                     notice of intent to offset provided to
                                                                   debt. This part does not apply to any                     the debtor pursuant to this part may
                                                                   debt or claim owed to the Department                      be considered evidence of service for
                                                                   of Health and Human Services by an-                       purposes of this regulation. Evidence of
                                                                   other Federal agency.                                     service may be retained electronically
                                                                      (2) Nothing in this part precludes the                 so long as the manner of retention is
                                                                   Department from pursuing other debt                       sufficient for evidentiary purposes.
                                                                   collection procedures, including admin-                     FMS means the Financial Manage-
                                                                   istrative wage garnishment under part                     ment Service, a bureau within the De-
                                                                   32 of this title, to collect a debt that                  partment of the Treasury.
                                                                   has been submitted to the Department                        IRS means the Internal Revenue
                                                                   of the Treasury under this part. The                      Service, a bureau of the Department of
                                                                   Department may use such debt collec-                      the Treasury.
                                                                   tion procedures separately or in con-                       Legally enforceable means that there
                                                                   junction with the offset collection pro-                  has been a final agency determination
                                                                   cedures of this part.                                     that the debt, in the amount stated, is
                                                                                                                             due and there are no legal bars to col-
                                                                   § 31.2 Definitions.                                       lection action.
                                                                      In this part, unless the context oth-                    Operating division means each sepa-
                                                                   erwise requires:                                          rate component, within the Depart-
                                                                      Administrative offset means with-                      ment of Health and Human Services,
                                                                   holding funds payable by the United                       including, but not limited to, the Ad-
                                                                   States (including funds payable by the                    ministration for Children and Fami-
                                                                   United States on behalf of a State gov-                   lies, Administration on Aging, the Cen-
                                                                   ernment) to, or held by the United                        ters for Disease Control and Preven-
                                                                   States for, a person to satisfy a claim.                  tion, the Centers for Medicare & Med-
                                                                      Day means calendar day. For pur-                       icaid Services, the Food and Drug Ad-
                                                                   poses of computation, the last day of                     ministration, the National Institutes
                                                                   the period will be included unless it is                  of Health, and the Office of the Sec-
                                                                   a Saturday, Sunday, or a Federal legal                    retary.
                                                                   holiday, in which case the next busi-                       Past-due debt means a debt which the
                                                                   ness day will be considered the last day                  debtor does not pay or otherwise re-
                                                                   of the period.                                            solve by the date specified in the ini-
                                                                      Debt or claim means an amount of                       tial demand for payment, or in an ap-
                                                                   money, funds, or other property deter-                    plicable written repayment agreement
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                                                                   mined by an appropriate official to be                    or other instrument, including a post-
                                                                   owed to the United States from any in-                    delinquency repayment agreement.

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                                                                   § 31.3                                                         45 CFR Subtitle A (10–1–09 Edition)

                                                                     Secretary means the Secretary of the                    that collections are properly credited
                                                                   Department of Health and Human                            to the debt;
                                                                   Services, or the Secretary’s designee                       (2) Except in the case of a judgment
                                                                   within any Operating Division or Re-                      debt or as otherwise allowed by law,
                                                                   gional Office.                                            the debt is referred within ten (10)
                                                                     Taxpayer identifying number means                       years after the Department’s right of
                                                                   the identifying number described under                    action accrues;
                                                                   section 6109 of the Internal Revenue                        (3) The Department has made reason-
                                                                   Code of 1986 (26 U.S.C. 6109). For an in-                 able efforts to obtain payment of the
                                                                   dividual, the taxpayer identifying                        debt, and has:
                                                                   number is the individual’s social secu-                     (i) Submitted the debt to FMS for
                                                                   rity number.                                              collection by offset and complied with
                                                                     Tax refund offset means withholding                     the administrative offset provision of
                                                                   or reducing a tax refund payment by an                    31 U.S.C. 3716(a) and related regula-
                                                                   amount necessary to satisfy a debt                        tions, to the extent that collection by
                                                                   owed to the United States by the                          administrative offset is not prohibited
                                                                   payee(s) of a tax refund payment.                         by statute;
                                                                     Tax refund payment means any over-                        (ii) Notified, or made a reasonable at-
                                                                   payment of Federal taxes to be re-                        tempt to notify, the debtor that the
                                                                   funded to the person making the over-                     debt is past-due, and unless paid within
                                                                   payment after the IRS makes the ap-                       60 days of the date of the notice, the
                                                                   propriate credits as provided in 26                       debt may be referred to Treasury for
                                                                   U.S.C. 6402 for any liabilities for any                   tax refund offset. For purposes of this
                                                                   tax on the part of the person who made                    regulation, the Department has made a
                                                                   the overpayment.                                          reasonable attempt to notify the debt-
                                                                                                                             or if the agency uses the current ad-
                                                                   § 31.3 General rule.                                      dress information contained in the De-
                                                                      (a) Any past-due, legally enforceable                  partment’s records related to the debt.
                                                                   debt of at least $25, or such other min-                  If address validation is desired or nec-
                                                                   imum amount as determined by the                          essary, the Department may obtain in-
                                                                   Secretary of the Treasury, shall be sub-                  formation from the IRS pursuant to 26
                                                                   mitted to FMS for collection by tax re-                   U.S.C. 6103(m)(2)(4) or (5).
                                                                   fund offset.                                                (iii) Given the debtor at least 60 days
                                                                      (b) FMS will compare tax refund pay-                   to present evidence that all or part of
                                                                   ment records, as certified by the IRS,                    the debt is not past-due or not legally
                                                                   with records of debts submitted by the                    enforceable, considered any evidence
                                                                   Department under this part. A match                       presented by the debtor, and deter-
                                                                   will occur when the taxpayer identi-                      mined that the debt is past-due and le-
                                                                   fication number and name of a pay-                        gally enforceable; and
                                                                   ment certification record are the same                      (iv) Provided the debtor with an op-
                                                                   as the taxpayer identifying number and                    portunity to make a written agreement
                                                                   name control of a debtor record. When                     to repay the debt; and
                                                                   a match occurs and all other require-                       (4) The debt is at least $25.
                                                                   ments for tax refund offset have been                       (b) Referral. (1) The Secretary shall
                                                                   met, FMS will reduce the amount of                        submit past-due, legally enforceable
                                                                   any tax refund payment payable to a                       debt information for tax refund offset
                                                                   debtor by the amount of any past-due                      in the time and manner prescribed by
                                                                   legally enforceable debt. Any amounts                     the Department of the Treasury.
                                                                   not offset will be paid to the payee(s)                     (2) For each debt referred under this
                                                                   listed in the payment certification                       part, the Secretary will include the fol-
                                                                   record.                                                   lowing information:
                                                                                                                               (i) The name and taxpayer identi-
                                                                   § 31.4 Certification and referral of                      fying number, as defined in 26 U.S.C.
                                                                        debt.                                                6109, of the debtor responsible for the
                                                                      (a) Certification. The Secretary shall                 debt;
                                                                   certify to FMS that:                                        (ii) The amount of such past-due and
                                                                      (1) The debt is past-due and legally                   legally enforceable debt;
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                                                                   enforceable in the amount submitted                         (iii) The date on which the debt be-
                                                                   and that the Department will ensure                       came past-due; and

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                                                                   Department of Health and Human Services                                                             § 31.7

                                                                     (iv) The designation of the Depart-                     the manner of retention is sufficient
                                                                   ment referring the debt.                                  for evidentiary purposes
                                                                     (c) Correcting and updating referral. (1)
                                                                   After referring a debt under this part,                   § 31.6   Review of Departmental records.
                                                                   the Secretary shall promptly notify                         (a) To inspect or copy Departmental
                                                                   the Department of the Treasury if:                        records relating to the debt, the debtor
                                                                     (i) An error was made with respect to                   must send a written request to the ad-
                                                                   information transmitted to the Depart-                    dress designated in the notice described
                                                                   ment of the Treasury;                                     in section 31.5. The request must be re-
                                                                     (ii) The Department receives a pay-                     ceived by the Department within 60
                                                                   ment or credits a payment to the ac-                      days from the date of the notice.
                                                                   count of a debtor referred for tax re-                      (b) In response to a timely request as
                                                                   fund offset; or                                           described in paragraph (a) of this sec-
                                                                     (iii) The debt amount is otherwise in-                  tion, the designated Department offi-
                                                                   correct.                                                  cial shall notify the debtor of the loca-
                                                                     (2) The Department shall provide the                    tion and time when the debtor may in-
                                                                   certification required under paragraph                    spect and copy such records. If the
                                                                   (a) of this section for any increases to                  debtor is unable to personally inspect
                                                                   amounts owed.                                             such records as the result of geo-
                                                                     (d) Rejection of certification. If the De-              graphical or other constraints, the De-
                                                                   partment of Treasury rejects a certifi-                   partment will arrange to send copies of
                                                                   cation because it does not comply with                    the records to the debtor.
                                                                   the requirements of paragraph (a) of
                                                                   this section, upon notification of the                    § 31.7 Review of a determination that a
                                                                   rejection and the reason(s) for rejec-                         debt is past-due and legally enforce-
                                                                   tion, the Secretary will resubmit the                          able.
                                                                   debt with a corrected certification.                        (a) Requesting a review. (1) If the debt-
                                                                                                                             or believes that all or part of the debt
                                                                   § 31.5     Notice.
                                                                                                                             is not past-due or not legally enforce-
                                                                     (a) Requirements. If not previously in-                 able, the debtor may request a review
                                                                   cluded in the initial demand letter pro-                  by the Department by sending a writ-
                                                                   vided under section 30.11, at least 60                    ten request to the address provided in
                                                                   days before referring a debt for tax re-                  the notice. The written request must
                                                                   fund offset, the Secretary shall mail,                    be received by the Department within
                                                                   by first class mail to the debtor’s last                  60 days from the date of the notice or,
                                                                   known address, written notice inform-                     if the debtor has requested to inspect
                                                                   ing the debtor of:                                        the records, within 30 days from the
                                                                     (1) The nature and amount of the                        debtor’s inspection of the records or
                                                                   debt;                                                     the Department’s mailing of the
                                                                     (2) The determination that the debt                     records under section 31.6(b), whichever
                                                                   is past-due and legally enforceable, and                  is later.
                                                                   unless paid within 60 days after the                        (2) The request for review must be
                                                                   date of the notice, the Secretary in-                     signed by the debtor, state the amount
                                                                   tends to enforce collection by referring                  disputed, and fully identify and explain
                                                                   the debt the Department of the Treas-                     the evidence that the debtor believes
                                                                   ury for tax refund offset; and                            supports the debtor’s position. The
                                                                     (3) The debtor’s rights to:                             debtor must submit with the request
                                                                     (i) Inspect and copy Department                         any documents that the debtor wishes
                                                                   records relating to the debt;                             to be considered, or the debtor must
                                                                     (ii) Enter into written agreement to                    state in the request that additional in-
                                                                   repay the amount of the debt;                             formation will be submitted within the
                                                                     (iii) Request review and present evi-                   above specified time period.
                                                                   dence that all or part of the debt is not                   (3) Failure to timely request a review
                                                                   past-due or not legally enforceable.                      will be deemed an admission by the
                                                                     (b) The Secretary will retain evi-                      debtor that the debt is past-due and le-
                                                                   dence of service indicating the date of                   gally enforceable, and will result in a
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                                                                   mailing of the notice. The notice may                     referral of the debt to the Department
                                                                   be retained electronically so long as                     of the Treasury without further action.

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                                                                   Pt. 32                                                         45 CFR Subtitle A (10–1–09 Edition)

                                                                     (b) Review. Upon the timely submis-                     gram that gives rise to a delinquent
                                                                   sion of evidence by the debtor, the De-                   non-tax debt owed to the United States
                                                                   partment shall review the dispute and                     and to all officers or employees of the
                                                                   shall consider its records and any docu-                  Department authorized to collect such
                                                                   mentation and evidence submitted by                       debt.
                                                                   the debtor. The Department shall make                       (2) This part shall apply notwith-
                                                                   a determination based on the review of                    standing any provision of State law.
                                                                   the written record, and shall send a                        (3) Nothing in this part precludes the
                                                                   written notice of its decision to the                     compromise of a debt or the suspension
                                                                   debtor. There is no administrative ap-                    or termination of collection action in
                                                                   peal of this decision.                                    accordance with part 30 of this title, or
                                                                     (c) A debt that previously has been                     other applicable law or regulation.
                                                                   reviewed pursuant to this part, or that                     (4) The receipt of payments pursuant
                                                                   has been reduced to a judgment, will                      to this part does not preclude the De-
                                                                   not be reconsidered under this part un-                   partment from pursuing other debt col-
                                                                   less the evidence presented by the debt-                  lection remedies, including the offset
                                                                   or disputes payments made or events                       of Federal payments to satisfy delin-
                                                                   occurring subsequent to the previous                      quent non-tax debt owed to the United
                                                                   review or judgment.                                       States. The Department may pursue
                                                                                                                             such debt collection remedies sepa-
                                                                    PART 32—ADMINISTRATIVE WAGE                              rately or in conjunction with adminis-
                                                                            GARNISHMENT                                      trative wage garnishment.
                                                                                                                               (5) This part does not apply to the
                                                                   Sec.                                                      collection of delinquent non-tax debts
                                                                   32.1    Purpose and scope.                                owed to the United States from the
                                                                   32.2    Definitions.
                                                                   32.3    General rule.
                                                                                                                             wages of Federal employees from their
                                                                   32.4    Notice.                                           Federal employment. Federal pay is
                                                                   32.5    Hearing.                                          subject to the Federal salary offset
                                                                   32.6    Withholding order.                                procedures set forth in 5 U.S.C. 5514 and
                                                                   32.7    Certification by employer.                        other applicable laws.
                                                                   32.8    Amounts withheld.                                   (6) Nothing in this part requires the
                                                                   32.9    Financial hardship.
                                                                   32.10    Refunds.
                                                                                                                             Department to duplicate notices or ad-
                                                                   32.11    Ending garnishment.                              ministrative proceedings required by
                                                                   32.12    Right of action.                                 contract or other laws or regulations.
                                                                     AUTHORITY: 31 U.S.C. 3720D, 5 U.S.C. 552,
                                                                                                                             § 32.2   Definitions.
                                                                   553, E.O. 12866, 12988, 13808.
                                                                     SOURCE: 68 FR 15093, Mar. 28, 2003, unless                In this part, unless the context oth-
                                                                   otherwise noted.                                          erwise requires:
                                                                                                                               Business day means Monday through
                                                                   § 32.1 Purpose and scope.                                 Friday. For purposes of computation,
                                                                      (a) Purpose. This part prescribes the                  the last day of the period will be in-
                                                                   standards and procedures for the De-                      cluded unless it is a Federal legal holi-
                                                                   partment to collect money from a                          day, in which case the next business
                                                                   debtor’s disposable pay by means of ad-                   day following the holiday will be con-
                                                                   ministrative wage garnishment to sat-                     sidered the last day of the period.
                                                                   isfy delinquent non-tax debts owed to                       Certificate of service means a certifi-
                                                                   the United States.                                        cate signed by an employee of the De-
                                                                      (b) Authority. These standards and                     partment indicating the nature of the
                                                                   procedures are authorized under the                       document to which it pertains, the
                                                                   wage garnishment provisions of the                        date of mailing of the document, and to
                                                                   Debt Collection Improvement Act of                        whom it is being sent.
                                                                   1996, codified at 31 U.S.C. 3720D, and the                  Day means calendar day. For pur-
                                                                   Department of the Treasury Adminis-                       poses of computation, the last day of
                                                                   trative Wage Garnishment Regulations                      the period will be included unless it is
                                                                   at 31 CFR 285.11.                                         a Saturday, Sunday, or a Federal legal
                                                                      (c) Scope. (1) This part applies to all                holiday, in which case the next busi-
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                                                                   Departmental Operating Divisions and                      ness day will be considered the last day
                                                                   Regional Offices that administer a pro-                   of the period.

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