95-19588. Collection of Debts by Tax Refund Offset  

  • [Federal Register Volume 60, Number 153 (Wednesday, August 9, 1995)]
    [Rules and Regulations]
    [Pages 40456-40457]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-19588]
    
    
    
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    AGENCY FOR INTERNATIONAL DEVELOPMENT
    
    22 CFR Part 213
    
    RIN 0422-AA25
    
    
    Collection of Debts by Tax Refund Offset
    
    AGENCY: Agency for International Development.
    
    ACTION: Final rule.
    
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    SUMMARY: The Agency for International Development is amending its debt 
    collection regulations to implement the tax refund offset provisions of 
    31 U.S.C. 3720A.
    
    DATES: Effective August 9, 1995.
    
    FOR FURTHER INFORMATION CONTACT:
    Jan W. Miller, Office of the General Counsel, Room 6881, N.S., Agency 
    for International Development, Washington, DC 20523; (202) 647-6380.
    
    SUPPLEMENTARY INFORMATION: A proposal to amend 22 CFR part 213 to allow 
    the agency to recover delinquent debts owed the United States 
    Government through the offset of tax refunds was published in the 
    Federal Register on January 12, 1995, (60 FR 2911). No comments were 
    received.
    
    Regulatory Impact
    
        This rule is not a ``significant regulatory action'' under 
    Executive Order No. 12866.
    
    Environmental Impact
    
        This action does not constitute a major Federal action 
    significantly affecting the quality of the human environment.
    
    List of Subjects in 22 CFR Part 213
    
        Claims, salary offset.
    
        Accordingly, 22 CFR part 213 is amended as follows:
        1. The authority citation for part 213 is revised to read as 
    follows:
    
        Authority: Sec. 621 of the Foreign Assistance Act of 1961, as 
    amended, 22 U.S.C. 2381; subpart B also issued under 5 U.S.C. 5514; 
    5 CFR 550, subpart K. Subpart C also issued under 31 U.S.C. 3720A.
    
        2. Part 213 is amended to add a new subpart C as follows:
    
    PART 213--COLLECTION OF CLAIMS
    
    * * * * *
    Subpart C--Collection of Debts by Tax Refund Offset
    213.21  Purpose.
    213.22  Applicability and scope.
    213.23  Administrative charges.
    213.24  Pre-offset notice.
    213.25  Reasonable attempt to notify and clear and concise 
    notification.
    213.26  Consideration of evidence and notification of decision.
    213.27  Change in conditions after submission to IRS.
    Subpart C--Collection of Debts by Tax Refund Offset
    
    
    Sec. 213.21  Purpose.
    
        This subpart establishes procedures for AID to refer past due debts 
    to the Internal Revenue Service (IRS) for offset against income tax 
    refunds of taxpayers owing debts to AID.
    
    
    Sec. 213.22  Applicability and scope.
    
        (a) This subpart implements 31 U.S.C. 3720A which authorizes the 
    IRS to reduce a tax refund by the amount of a past due and legally 
    enforceable debt owed to the United States.
        (b) A past due legally enforceable debt referable to the IRS is a 
    debt which is owed to the United States and:
        (1) Except for judgement debt or other debts specifically exempt 
    from this requirement, is referred within 10 years after AID's right of 
    action accrues;
        (2) In the case of individuals, is at least $25.00.
        (3) In the case of business debtors is at least $100.00;
        (4) In the case of individual debtors, cannot be currently 
    collected pursuant to the salary offset provisions of 5 U.S.C. 5514(a).
        (5) Is ineligible for or cannot be currently collected pursuant to 
    the administrative offset provisions of 31 U.S.C. 3716;
        (6) Is the debt of a debtor (or in the case of an individual 
    debtor, his or her spouse) for whom AID records do not show debtor has 
    filed for bankruptcy under title 11 of the United States Code or for 
    whom AID can clearly establish at the time of the referral that an 
    automatic stay under 11 U.S.C. 362 has been lifted or is no longer in 
    effect;
        (7) Has been disclosed by AID to a consumer reporting agency as 
    authorized by 31 U.S.C. 3711(f); and
        (8) For which AID has given notice, considered any evidence, and 
    determined that the debt is past-due and legally enforceable under the 
    provisions of this subpart.
    
    
    Sec. 213.23  Administrative charges.
    
        All administrative charges incurred in connection with the referral 
    of debts to the IRS will be added to the debt, thus increasing the 
    amount of the offset.
    
    
    Sec. 213.24  Pre-Offset Notice.
    
        (a) Before AID refers a debt to the IRS, it will notify or make a 
    reasonable attempt to notify the debtor that:
        (1) The debt is past due;
        (2) Unless repaid within 60 calendar days thereafter, the debt will 
    be referred to the IRS for offset against any overpayment of tax;
        (3) The debtor has at least 60 days from the date of the notice to 
    present evidence that all or part of such debt is 
    
    [[Page 40457]]
    not past-due or not legally enforceable; and
        (4) AID will consider any evidence presented by the debtor and 
    determine whether any part of such debt is past-due and legally 
    enforceable.
        (b) The notice will explain to the debtor the manner in which the 
    debtor may present such evidence to AID.
    
    
    Sec. 213.25  Reasonable attempt to notify and clear and concise 
    notification.
    
        (a) Reasonable attempt to notify. AID will have made a reasonable 
    attempt to notify the debtor under Sec. 213.24(a) it is used a mailing 
    address for the debtor obtained from the IRS pursuant to the Internal 
    Revenue Code, 26 U.S.C. 6103 (m)(2) or (m)(4), unless AID receives 
    clear and concise notification from the debtor that notices are to be 
    sent to an address different from the address obtained from the IRS.
        (b) Clear and concise notification. Clear and concise notification 
    means that the debtor has provided AID with written notification 
    containing the debtor's name and identifying number (as defined in the 
    Internal Revenue Code, 26 U.S.C. 6109), the debtor's new address, and 
    the debtor's intent to have the notices sent to the new address.
    
    
    Sec. 213.26  Consideration of evidence and notification of decision.
    
        (a) AID will give the debtor at least 60 days from the date of the 
    pre-offset notice to present evidence. Evidence that collection of the 
    debt is affected by a bankruptcy proceeding involving the debtor shall 
    bar referral of the debt.
        (b) If the evidence presented is not considered by an employee of 
    AID but by an entity or person acting for AID, the debtor will have at 
    least 30 days from the date the entity or person notifies the debtor 
    that all or part of the debt is past-due and legally enforceable to 
    request review by an employee of AID of any unresolved dispute.
        (c) AID will provide the debtor with its decision and the decision 
    of any entity or person acting for AID on to whether all or part of the 
    debt is past-due and legally enforceable. The decision will include a 
    statement of the basis or principal bases for the decision.
    
    
    Sec. 213.27  Change in conditions after submission to IRS.
    
        AID will promptly notify the IRS if, after submission of a debt to 
    the IRS for offset, AID:
        (a) Determines that an error has been made with respect to the 
    information submitted to the IRS;
        (b) Receives a payment or credits a payment, other than an IRS 
    offset, to the account of the debtor;
        (c) Receives notice that the debtor has filed for bankruptcy under 
    title 11 of the United States Code or the debt has been discharged in 
    bankruptcy;
        (d) Receives notice that an offset was made at the time when the 
    automatic stay provisions of 11 U.S.C. 362 were in effect;
        (e) Receives notice that the debt has been extinguished by death; 
    or
        (f) Refunds all or part of the offset amount to the debtor.
    
        Dated: March 21, 1995.
    Donald K. Charney,
    Chief Financial Officer.
    [FR Doc. 95-19588 Filed 8-8-95; 8:45 am]
    BILLING CODE 6116-01-M
    
    

Document Information

Effective Date:
8/9/1995
Published:
08/09/1995
Department:
Agency for International Development
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-19588
Dates:
Effective August 9, 1995.
Pages:
40456-40457 (2 pages)
RINs:
0422-AA25
PDF File:
95-19588.pdf
CFR: (7)
5 CFR 213.21
5 CFR 213.22
5 CFR 213.23
5 CFR 213.24
5 CFR 213.25
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