[Federal Register Volume 63, Number 167 (Friday, August 28, 1998)]
[Rules and Regulations]
[Page 46140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22939]
[[Page 46139]]
_______________________________________________________________________
Part VII
Department of the Treasury
_______________________________________________________________________
Fiscal Service
_______________________________________________________________________
31 CFR Part 285
Offset of Tax Refund Payments to Collect Past-Due, Legally Enforceable
Nontax Debt; Final Rule
Federal Register / Vol. 63, No. 167 / Friday, August 28, 1998 / Rules
and Regulations
[[Page 46140]]
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 285
RIN 1510-AA62
Offset of Tax Refund Payments to Collect Past-Due, Legally
Enforceable Nontax Debt
AGENCY: Financial Management Service, Fiscal Service, Treasury.
ACTION: Final rule.
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SUMMARY: This final rule adopts the interim rule, published in the
Federal Register on June 25, 1997, concerning the tax refund offset
procedures applicable to the collection of delinquent nontax debt owed
to Federal agencies.
DATES: This rule is effective September 28, 1998. This rule applies to
tax refund payments payable after January 1, 1998.
FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Financial Program
Specialist, at (202) 874-6660; Martin Mills, Treasury Offset Program,
at (202) 874-8700; Ellen Neubauer or Ronda Kent, Senior Attorneys, at
(202) 874-6680. A copy of this final rule is being made available for
downloading from the Financial Management Service web site at the
following address: http://www.fms.treas.gov.
SUPPLEMENTARY INFORMATION:
Background
On June 25, 1997, the Financial Management Service (FMS) published
in the Federal Register an interim rule with request for comments
concerning the tax refund offset procedures applicable to the
collection of delinquent nontax debt owed to Federal agencies (62 FR
34175, June 25, 1997). The closing date for the submission of comments
was July 25, 1997.
Since publication of the interim rule, FMS and the Internal Revenue
Service have delayed the merger of the tax refund offset program with
the Treasury Offset Program to January 1, 1999. However, the procedural
changes affecting the prerequisites to participation in the tax refund
offset program remain effective for all tax refund payments payable
after January 1, 1998. Therefore, the interim rule may be adopted
without changing the effective date.
Comments on the Interim Rule
By the close of the comment period, FMS received one comment on the
interim rule from one organization commenting on behalf of a provider
of tax-related financial services and a financial institution. The
commenter noted that the rule does not require agencies to report debts
to credit bureaus before submitting them for collection by tax refund
offset. The commenter suggested that the rule should establish a time
frame within which an agency is required to report a delinquent debt to
a credit bureau.
This rule does not include credit bureau reporting as a
prerequisite for participation, or as a requirement for continued
participation, in the tax refund offset program. Section 31001(k) of
the Debt Collection Improvement Act of 1996, Pub. L. 104-134, 110 Stat.
1321-358 (Apr. 26, 1996), codified at 31 U.S.C. 3711(e), mandates that
agencies report consumer debt to credit bureaus. Therefore, it is not
necessary to address credit bureau reporting in the tax refund offset
program and no change has been made to the final rule.
Adoption as Final Rule
Accordingly, the interim rule adding 31 CFR part 285 which was
published at 62 FR 34175 on June 25, 1997, is adopted as a final rule
without change.
Dated: August 21, 1998.
Richard L. Gregg,
Commissioner.
[FR Doc. 98-22939 Filed 8-27-98; 8:45 am]
BILLING CODE 4810-35-P
