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CFR › Title 38 › Chapter I › Part 1 › Section 1.944

38 CFR 1.944 - Discharge of indebtedness; reporting requirements.

There are 2 Updates appearing in the Federal Register for 38 CFR 1. Select the tab below to view, or View eCFR (GPOAccess)
§ 1.944
Discharge of indebtedness; reporting requirements.
(a) Before discharging a delinquent debt (also referred to as a close out of the debt), VA shall take all appropriate steps to collect the debt in accordance with 31 U.S.C. 3711(g), including, as applicable, administrative offset, tax refund offset, Federal salary offset, referral to Treasury or Treasury-designated debt collection centers or private collection contractors, credit bureau reporting, wage garnishment, litigation, and foreclosure. Discharge of indebtedness is distinct from termination or suspension of collection activity under §§ 1.940 through 1.943 and is governed by the Internal Revenue Code (see 26 U.S.C. 6050P ). When collection action on a debt is suspended or terminated, the debt remains delinquent and further collection action may be pursued at a later date in accordance with the standards set forth in §§ 1.900 through 1.953. When VA discharges a debt in full or in part, further collection action is prohibited. Therefore, VA should make the determination that collection action is no longer warranted before discharging a debt. Before discharging a debt, VA must terminate debt collection action.
(b) Upon discharge of an indebtedness, VA must report the discharge to the Internal Revenue Service (IRS) in accordance with the requirements of 26 U.S.C. 6050P and 26 CFR 1.6050P-1. VA may request Treasury or Treasury-designated debt collection centers to file such a discharge report to the IRS on VA's behalf.
(c) When discharging a debt, VA must request that any liens of record securing the debt be released.
(d) 31 U.S.C. 3711(i)(2) requires agencies to sell a delinquent nontax debt upon termination of collection action if the Secretary of the Treasury determines such a sale is in the best interests of the United States. Since the discharge of a debt precludes any further collection action (including the sale of a delinquent debt), VA may not discharge a debt until the requirements of § 3711(i)(2) have been met.
(Authority: 31 U.S.C. 3711 ; 38 U.S.C. 501 )
[69 FR 62200, Oct. 25, 2004]

Title 38 published on 2012-07-01

The following are only the Rules published in the Federal Register after the published date of Title 38.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2013-02-11; vol. 78 # 28 - Monday, February 11, 2013
    1. 78 FR 9589 - Disclosures To Participate in State Prescription Drug Monitoring Programs
      GPO FDSys XML | Text
      DEPARTMENT OF VETERANS AFFAIRS
      Interim final rule.
      Effective Date: This rule is effective on February 11, 2013. Comment Date: Comments must be received on or before April 12, 2013.
      38 CFR Part 1

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.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
USC : Title 31 - MONEY AND FINANCE

§ 1311

§ 1316

§ 3711 - Collection and compromise

§ 3712 - Time limitations for presenting certain claims of the Government

§ 3713 - Priority of Government claims

§ 3714 - Keeping money due States in default

§ 3715 - Buying real property of a debtor

§ 3716 - Administrative offset

§ 3717 - Interest and penalty on claims

§ 3718 - Contracts for collection services

§ 3719 - Reports on debt collection activities

USC : Title 38 - VETERANS’ BENEFITS

§ 501 - Rules and regulations

§ 5009

USC : Title 39 - POSTAL SERVICE

§ 3220 - Use of official mail in the location and recovery of missing children

Presidential Documents

Executive Order ... 9865

Executive Order ... 10096

Title 38 published on 2012-07-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 38 CFR 1 after this date.

  • 2013-02-11; vol. 78 # 28 - Monday, February 11, 2013
    1. 78 FR 9589 - Disclosures To Participate in State Prescription Drug Monitoring Programs
      GPO FDSys XML | Text
      DEPARTMENT OF VETERANS AFFAIRS
      Interim final rule.
      Effective Date: This rule is effective on February 11, 2013. Comment Date: Comments must be received on or before April 12, 2013.
      38 CFR Part 1