How will Treasury entities add interest, penalty charges, and administrative
costs to a Treasury debt?
(a) Assessment and notice. Treasury entities shall assess interest,
penalties and administrative costs on Treasury debts in accordance with the
provisions of 31 U.S.C. 3717 and 31 CFR 901.9, on Treasury debts. Interest shall be
charged in accordance with the requirements of 31 U.S.C. 3717(a). Penalties shall
accrue at the rate of 6% per year, or such other higher rate as authorized by law.
Administrative costs, that is the costs of processing and handling a delinquent
debt, shall be determined by the Treasury entity collecting the Treasury debt.
Treasury entities may have additional policies regarding how interest, penalties,
and administrative costs are assessed on particular types of debts. Treasury
entities are required to explain in the notice to the debtor described in § 5.4 of
this part how interest, penalties, costs, and other charges are assessed, unless the
requirements are included in a contract or repayment agreement.
(b) Waiver of interest, penalties, and administrative costs. Unless
otherwise required by law, Treasury entities may not charge interest if the amount
due on the debt is paid within 30 days after the date from which the interest
accrues. See31 U.S.C. 3717(d). Treasury entities may waive interest,
penalties, and administrative costs, or any portion thereof, when it would be
against equity and good conscience or not in the Treasury entity's best interest to
collect such charges, in accordance with Treasury guidelines for waiving claims
against Treasury employees for erroneous overpayments. See Treasury
Directive 34-01 (Waiving Claims Against Treasury Employees for Erroneous Payments)
set forth at Appendix A of this part and at http://www.treas.gov/regs.
Legal counsel approval is not required to waive such charges. Cf., §§ 5.7 and 5.8 of
this part, which require legal counsel approval when compromising a debt or
terminating debt collection activity on a debt.
(c) Accrual during suspension of debt collection. In most cases,
interest, penalties and administrative costs will continue to
accrue during any period when collection has been suspended for any reason (for
example, when the debtor has requested a hearing). Treasury entities may suspend
accrual of any or all of these charges when accrual would be against equity and good
conscience or not in the Treasury entity's best interest, in accordance with
Treasury guidelines for waiving claims against Treasury employees for erroneous
overpayments. See Treasury Directive 34-01 (Waiving Claims Against
Treasury Employees for Erroneous Payments), set forth at Appendix A of this part and
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.