How will Treasury entities use administrative offset (offset of non-tax
Federal payments) to collect a Treasury debt?
(a) Centralized administrative offset through the Treasury Offset
Program. (1) In most cases, the Financial Management Service uses the Treasury
Offset Program to collect Treasury debts by the offset of Federal payments. See § 5.9(c) of this part. If not already transferred to the Financial
Management Service under § 5.9 of this part, Treasury entities will refer any
eligible debt over 180 days delinquent to the Treasury Offset Program for collection
by centralized administrative offset. See31 U.S.C. 3716(c)(6); 31 CFR
part 285, subpart A; and 31 CFR 901.3(b). Treasury entities may refer any eligible
debt less than 180 days delinquent to the Treasury Offset Program for offset.
(2) At least sixty (60) days prior to referring a debt to the Treasury Offset
Program, in accordance with paragraph (a)(1) of this section, Treasury entities will
send notice to the debtor in accordance with the requirements of § 5.4 of this part.
Treasury entities will certify to the Financial Management Service, in writing, that
the debt is valid, delinquent, legally enforceable, and that there are no legal bars
to collection by offset. In addition, Treasury entities will certify their
compliance with the requirements described in this part.
(b) Non-centralized administrative offset for Treasury debts.(1)
When centralized administrative offset through the Treasury Offset Program is not
available or appropriate, Treasury entities may collect past-due, legally
enforceable Treasury debts through non-centralized administrative offset. See 31 CFR 901.3(c). In these cases, Treasury entities may offset a payment
internally or make an offset request directly to a Federal payment agency. If the
Federal payment agency is another Treasury entity, the Treasury entity making the
request shall do so through the Deputy Chief Financial Officer as described in §
5.20(c) of this part.
(2) At least thirty (30) days prior to offsetting a payment internally or
requesting a Federal payment agency to offset a payment, Treasury entities will send
notice to the debtor in accordance with the requirements of § 5.4 of this part. When
referring a debt for offset under this paragraph (b), Treasury entities making the
request will certify, in writing, that the debt is valid, delinquent, legally
enforceable, and that there are no legal bars to collection by offset. In addition,
Treasury entities will certify their compliance with these regulations concerning
administrative offset. See 31 CFR 901.3(c)(2)(ii).
(c) Administrative review. The notice described in § 5.4 of this part
shall explain to the debtor how to request an administrative review of a Treasury
entity's determination that the debtor owes a Treasury debt and how to present
evidence that the debt is not delinquent or legally enforceable. In addition to
challenging the existence and amount of the debt, the debtor may seek a review of
the terms of repayment. In most cases, Treasury entities will provide the debtor
with a “paper hearing” based upon a review of the written record, including
documentation provided by the debtor. Treasury entities shall provide the debtor
with a reasonable opportunity for an oral hearing when the debtor requests
reconsideration of the debt and the Treasury entity determines that the question of the indebtedness cannot be resolved by review of the documentary
evidence, for example, when the validity of the debt turns on an issue of
credibility or veracity. Unless otherwise required by law, an oral hearing under
this section is not required to be a formal evidentiary hearing, although Treasury
entities should carefully document all significant matters discussed at the hearing.
Treasury entities may suspend collection through administrative offset and/or other
collection actions pending the resolution of a debtor's dispute. Each Treasury
entity will have its own policies and procedures concerning the administrative
review process consistent with the FCCS and the regulations in this section.
(d) Procedures for expedited offset.(b) the circumstances
described in 31 CFR 901.3(b)(4)(iii), Treasury entities may effect an offset against
a payment to be made to the debtor prior to sending a notice to the debtor, as
described in § 5.4 of this part, or completing the procedures described in paragraph
(b)(2) and (c) of this section. Treasury entities shall give the debtor notice and
an opportunity for review as soon as practicable and promptly refund any money
ultimately found not to have been owed to the Government.
Title 31 published on 2012-07-01
no entries appear in the Federal Register after this date.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.