[Federal Register Volume 63, Number 196 (Friday, October 9, 1998)]
[Notices]
[Pages 54524-54525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27070]
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DEPARTMENT OF THE TREASURY
Fiscal Service
Agency Taxpayer Identifying Number Implementation Reports
AGENCY: Financial Management Service, Fiscal Service, Treasury.
ACTION: Policy statement.
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SUMMARY: The Debt Collection Improvement Act of 1996 requires that
executive agencies include the taxpayer identifying number (TIN) of
each payee on certified payment vouchers which are submitted to a
disbursing official. The Financial Management Service (FMS), the
Department of the Treasury disbursing agency, and other executive
branch disbursing agencies are responsible for examining certified
payment vouchers to determine whether such vouchers are in the proper
form. 31 U.S.C. 3325(a)(2)(A). To ensure that executive branch agencies
submit payment certifying vouchers in a form which includes payee TINs,
FMS is requiring each executive agency to prepare and submit an agency
TIN Implementation Report documenting agency compliance with the TIN
requirement. This Policy Statement describes agency TIN Implementation
Report requirements.
DATES: This policy statement takes effect October 9, 1998. Reports must
be received by April 9, 1999.
ADDRESSES: Reports should be sent to Dean Balamaci, Director, Agency
Liaison Division, Debt Management Services, Financial Management
Service, Room 154, 401 14th Street SW, Washington, DC 20227.
FOR FURTHER INFORMATION CONTACT: Dean Balamaci (Director, Agency
Liaison Division, Debt Management Services) at 202-874-6660, Sally
Phillips (Policy Analyst) at 202-874-6749, or James Regan (Attorney-
Advisor) at 202-874-6680. This document is available on the Financial
Management Service's web site: http://www.fms.treas.gov.
SUPPLEMENTARY INFORMATION:
Background
On April 26, 1996, the Debt Collection Improvement Act of 1996
(DCIA) was enacted as Chapter 10 of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996, Pub. L. 104-134, 110 Stat.
1321-358. A major purpose of the DCIA is to enhance the government-wide
collection of delinquent debts owed to the Federal Government. The DCIA
was effective on April 26, 1996.
Section 31001(d)(2) of the DCIA, codified at 31 U.S.C. 3716(c),
generally requires Federal disbursing officials to offset an eligible
Federal payment to a payee to satisfy a delinquent non-tax debt owed by
the payee to the United States. A Federal disbursing official will
conduct such an offset when the name and Taxpayer Identifying Number
(TIN) of the payee match the name and TIN of the delinquent debtor,
provided all other requirements for offset have been met. This process,
known as ``centralized offset,'' also may be used to collect delinquent
debts owed to States, including past-due child support. The Department
of the Treasury, Financial Management Service (FMS) is responsible for
implementing the DCIA, including the centralized offset authority.
Section 31001(y) of the DCIA, codified at 31 U.S.C. 3325(d),
facilitates centralized offset by requiring the head of an executive
agency or an agency certifying official to include the TINs of payees
on certified payment vouchers which are submitted to Federal disbursing
officials. FMS, as the Department of Treasury disbursing agency,
disburses more than 850 million Federal payments annually. See 31
U.S.C. 3321. FMS and other executive branch disbursing agencies are
responsible for examining certified payment vouchers to determine
whether such vouchers are in the proper form. 31 U.S.C. 3325(a)(2)(A).
To ensure that executive branch agencies submit payment certifying
vouchers in a form which includes payee TINs, FMS is requiring each
executive agency to prepare and submit an agency TIN Implementation
Report to FMS documenting agency compliance with the TIN requirement.
Agency TIN Implementation Reports must be received by FMS within six
months of the date of publication of this Policy Statement. Treasury
Financial Manual Bulletin (TFM) No. 99-02 is being published
concurrently with this Policy Statement. TFM Bulletin No. 99-02
provides detailed instructions to agencies on TIN Implementation Report
requirements and format.
FMS will review agency TIN Implementation Reports to determine the
status of compliance with the statutory requirement to include TINs on
payment vouchers. FMS also will evaluate the effectiveness and
credibility of proposed agency strategies to achieve compliance through
the elimination of barriers to the collection and providing of TINs.
FMS will formulate guidance to assist agencies in overcoming or
reconciling such barriers. FMS will monitor payment vouchers to ensure
that agencies are meeting compliance goals and time frames as
identified in Implementation Reports.
FMS will submit a report to Congress on agency payment voucher TIN
compliance as part of its DCIA consolidated report to Congress. See 31
U.S.C. 3711 note; 31 U.S.C. 3719 note; see also 142 Cong. Rec. H4091
(April 25, 1996) (statement of Rep. Horn) (``Congress directs the
disbursing official of the Secretary of Treasury * * * to survey agency
compliance
[[Page 54525]]
with this section [TIN payment voucher requirement] and include the
results of this survey in the consolidated debt collection report to
Congress * * *''). In the event that agency TIN Implementation Report
strategies fail to achieve compliance with the statutory payment
voucher TIN requirement, FMS may take other measures to ensure
compliance.
FMS made the determination to publish this Policy Statement
requiring agencies to submit Implementation Reports after reviewing
comments submitted by agencies in response to a proposed rule issued by
FMS on September 2, 1997 (62 FR 46428). The proposed rule, if
finalized, would require disbursing officials to reject payment
requests on certified payment vouchers lacking TINs. The comments
received in response to the proposed rule indicate that many agencies
have not yet overcome significant barriers impeding the collection and
providing of TIN information. Rejecting payment requests lacking TINs
would not resolve these barriers, but would unduly interfere with the
timely disbursement of Federal funds. Under these circumstances, FMS
determined that, rather than finalizing the proposed rule, the review
of required Implementation Reports and the promulgation of guidance by
FMS to assist agencies in overcoming or reconciling barriers to TIN
collection would more effectively ensure compliance with the statutory
TIN requirement.
This approach is consistent with the consensus of the inter-agency
TIN workgroup established in the fall of 1997 and led by FMS. The
inter-agency TIN workgroup is one of three workgroups tasked by the
Office of Management and Budget and the Chief Financial Officers
Council to resolve issues related to implementation processes needed to
achieve the goals and objectives of the DCIA. The TIN workgroup
strongly supported a planning and review process (consistent with
Implementation Report requirements) as a viable alternative to the
approach in the proposed rule to reject payment vouchers lacking TINs.
FMS received input from the inter-agency workgroup in the course of
drafting agency Implementation Report requirements.
Accordingly, FMS has concluded that the publication of the Policy
Statement, in lieu of a final rule, would more effectively resolve the
underlying barriers to collecting TINs, and therefore, increase
compliance with the DCIA. FMS has published elsewhere in this issue of
the Federal Register a withdrawal of the notice of proposed rulemaking
concurrently with the publication of this Policy Statement.
Policy Statement
Section 31001(y) of the Debt Collection Improvement Act of 1996,
codified at 31 U.S.C. 3325(d) requires the head of an executive agency
or an agency certifying official to include the TINs of payees on
certified payment vouchers which are submitted to Federal disbursing
officials pursuant to 31 U.S.C. 3325(a). Each executive agency shall
prepare and submit an agency TIN Implementation Report to FMS
documenting agency compliance with this statutory requirement. Agency
TIN Implementation Reports must be received by FMS within six months of
the date of publication of this Policy Statement.
Agency TIN Implementation Reports shall indicate the current status
of agency compliance with the requirement to furnish TINs with each
certified payment voucher; strategies for achieving compliance;
barriers to collection and providing of TINs; and strategies for
resolving those barriers.
FMS will review agency TIN Implementation Reports to determine the
status of agency compliance. FMS also will evaluate the effectiveness
and credibility of proposed agency strategies to achieve compliance
through the elimination of barriers to the collection and providing of
TINs. FMS will formulate guidance to assist agencies in overcoming or
reconciling such barriers. FMS will monitor payment vouchers to ensure
that agencies are meeting compliance goals and time frames as
identified in Implementation Reports.
Specific guidance on Implementation Report requirements and format,
and on payment system requirements relating to TINs, will be provided
in Treasury Financial Manual Bulletin (TFM) No. 99-02 and on FMS' web
site: http://www.fms.treas.gov. TFM Bulletin No. 99-02 is being
published concurrently with this Policy Statement.
FMS will submit a report to Congress on agency payment voucher TIN
compliance as part of its DCIA consolidated report to Congress. See 31
U.S.C. 3711 note; 31 U.S.C. 3719 note; see also 142 Cong. Rec. H4091
(April 25, 1996) (statement of Rep. Horn) (``Congress directs the
disbursing official of the Secretary of Treasury * * * to survey agency
compliance with this section [TIN payment voucher requirement] and
include the results of this survey in the consolidated debt collection
report to Congress * * *''). In the event that agency TIN
Implementation Report strategies fail to achieve compliance with the
statutory payment voucher TIN requirement, FMS may take other measures
to ensure compliance.
Dated: October 5, 1998.
Richard L. Gregg,
Commissioner.
[FR Doc. 98-27070 Filed 10-8-98; 8:45 am]
BILLING CODE 4810-35-P
