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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. erowe on DSK5CLS3C1PROD with CFR needed by Justice to prove the Depart- SOURCE: 68 FR 70445, Dec. 18, 2003, unless ment’s claim in court. When referring otherwise noted. 102 VerDate Nov<24>2008 10:50 Nov 03, 2009 Jkt 217187 PO 00000 Frm 00112 Fmt 8010 Sfmt 8010 Y:\SGML\217187.XXX 217187 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 erowe on DSK5CLS3C1PROD with CFR mined by an appropriate official to be or other instrument, including a post- owed to the United States from any in- delinquency repayment agreement. 103 VerDate Nov<24>2008 10:50 Nov 03, 2009 Jkt 217187 PO 00000 Frm 00113 Fmt 8010 Sfmt 8010 Y:\SGML\217187.XXX 217187 § 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; erowe on DSK5CLS3C1PROD with CFR enforceable in the amount submitted (iii) The date on which the debt be- and that the Department will ensure came past-due; and 104 VerDate Nov<24>2008 10:50 Nov 03, 2009 Jkt 217187 PO 00000 Frm 00114 Fmt 8010 Sfmt 8010 Y:\SGML\217187.XXX 217187 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 erowe on DSK5CLS3C1PROD with CFR 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. 105 VerDate Nov<24>2008 10:50 Nov 03, 2009 Jkt 217187 PO 00000 Frm 00115 Fmt 8010 Sfmt 8010 Y:\SGML\217187.XXX 217187 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- erowe on DSK5CLS3C1PROD with CFR Departmental Operating Divisions and ness day will be considered the last day Regional Offices that administer a pro- of the period. 106 VerDate Nov<24>2008 10:50 Nov 03, 2009 Jkt 217187 PO 00000 Frm 00116 Fmt 8010 Sfmt 8010 Y:\SGML\217187.XXX 217187
"PART TAX REFUND OFFSET"