[Federal Register Volume 59, Number 1 (Monday, January 3, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 93-31710]
[[Page Unknown]]
[Federal Register: January 3, 1994]
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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
29 CFR Part 1650
Collection of Debts by Federal Tax Refund Offset
AGENCY: Equal Employment Opportunity Commission.
ACTION: Interim final rule.
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SUMMARY: The Equal Employment Opportunity Commission (EEOC) is amending
its regulations, pursuant to the Deficit Reduction Act of 1984, to add
regulations on procedures for the collection of debts by Federal tax
refund offset. This rule outlines the procedures that EEOC will follow
for collection of a past-due, legally enforceable debt owed to EEOC by
referring such debt to the internal Revenue Service (IRS) for offset
against any overpayment of tax.
DATES: The interim final rule is effective on January 3, 1994. Comments
must be received by March 4, 1994.
ADDRESSES: Written comments should be addressed to Frances Hart,
Executive Officer, Office of Executive Secretariat, Equal Employment
Opportunity Commission, room 10402, 1801 L Street, NW., Washington, DC
20507.
FOR FURTHER INFORMATION CONTACT:
Nicholas M. Inzeo, Associate Legal Counsel, Thomas J. Schlageter,
Assistant Legal Counsel, or Daniel T. Riordan, Staff Attorney, at (202)
663-4669.
Copies of this interim final rule are available, upon request, in
the following alternate formats: Large print, braille, electronic file
on computer disk, and audio-tape. Copies may be obtained from the EEOC
Publications Center by calling (800) 669-3362 (voice) or (800) 800-3302
(TDD).
SUPPLEMENTARY INFORMATION: Section 2653 of the Deficit Reduction Act of
1984, 31 U.S.C. 3720A, was designed to make significant improvements in
a Federal agency's ability to collect a past-due, legally enforceable
debt owed by a taxpayer through offset by the IRS against an
overpayment of Federal tax. The Deficit Reduction Act also amended the
Internal Revenue Code of 1954 by adding subsection 6402(d) providing
that the Secretary of the Treasury shall: (1) Reduce the amount of any
overpayment due any person by the amount of a past-due, legally
enforceable debt owed to any Federal agency upon receiving notice from
the agency that such person owes the debt, (2) pay the reduction to the
agency, and (3) notify the person making the overpayment that the
overpayment has been reduced to satisfy such debt.
These regulations contain the procedures for collecting debts due
to the Commission. The individual owing the past-due, legally
enforceable debt will be notified of the debt and given the opportunity
to submit evidence concerning the existence or amount of the debt. Any
evidence received will be considered by Commission officials prior to
submitting any claim to the IRS for collection.
The Commission has determined that this rule does not constitute a
major rule for the purposes of Executive Order 12291. The Commission
also certifies under 5 U.S.C. 605(b), enacted by the Regulatory
Flexibility Act (Pub. L. 96-354), that the rule will not result in a
significant impact on a substantial number of small employers. For this
reason, a regulatory flexibility analysis is not required.
For the Commission.
Tony E. Gallegos,
Chairman.
For the reasons set forth in the preamble, title 29, chapter XIV of
the Code of Federal Regulations is amended by adding part 1650 to read
as follows:
PART 1650--DEBT COLLECTION
Subpart A--[Reserved]
Subpart B--Procedures for the Collection of Debts by Federal Tax Refund
Offset
Sec.
1650.201 Purpose.
1650.202 Past-due legally enforceable debt.
1650.203 Notification of intent to collect.
1650.204 Reasonable attempt to notify.
1650.205 Consideration of evidence submitted as a result of
notification of intent
1650.206 Notification to Internal Revenue Service.
1650.207 Administrative charges.
Authority: 31 U.S.C. 3720A
Subpart A--[Reserved]
Subpart B--Procedures for the Collection of Debts by Federal Tax Refund
Offset
Authority: 31 U.S.C. 3720A.
Sec. 1650.201 Purpose.
This subpart establishes procedures for EEOC to refer past-due
legally enforceable debts to the Internal Revenue Service (IRS) for
offset against the income tax refunds of persons owing debts to EEOC.
It specifies the agency procedures and the rights of the debtor
applicable to claims referred under the Federal Tax Refund Offset
Program for the collection of debts owned to EEOC.
Sec. 1650.202 Past-due legally enforceable debt.
A past-due legally enforceable debt for referral to the IRS is a
debt that resulted from any statute administered by EEOC and:
(a) Is an obligation of a debtor who is a natural person;
(b) Except in the case of a judgment debt, has been delinquent at
least 3 months but not more than 10 years at the time the offset is
made;
(c) Is at least $25.00;
(d) Cannot be currently collected pursuant to the salary offset
provisions of 5 U.S.C. 5514(a)(1);
(e) Is ineligible for administrative offset under 31 U.S.C. 3716(a)
by reason of 31 U.S.C. 3716(c)(2) or cannot be collected by
administrative offset under 31 U.S.C. 3716(a) by the EEOC against
amounts payable to or on behalf of the debtor by or on behalf of the
EEOC;
(f) With respect to which EEOC has given the debtor at least 60
days from the date of notification to present evidence that all or part
of the debt is not past-due or legally enforceable, has considered
evidence presented by such debtor, and has determined that an amount of
such debt is past-due and legally enforceable;
(g) Has been disclosed by EEOC to a consumer reporting agency is
authorized by 31 U.S.C. 3711(f), unless the consumer reporting agency
would be prohibited from reporting such information by 15 U.S.C. 1681c,
or unless the amount of the debt does not exceed $100.00;
(h) EEOC's records do not contain evidence that the person owing
that debt (or his or her spouse) has filed for bankruptcy under title
11 of the United States Code; and
(i) EEOC can clearly establish at the time of the referral that the
automatic stay under 11 U.S.C. 362 has been lifted or is no longer in
effect with respect to the person owing the debt or his or her spouse,
and the debt was not discharged in the bankruptcy proceeding.
Sec. 1650.203 Notification of intent to collect.
(a) Notification before submission to the IRS. A request for
reduction of an IRS income tax refund will be made only after EEOC
makes a determination that an amount is owed and past-due and gives or
makes a reasonable attempt to give the debtor 60 days written
notification of intent to collect by Federal tax refund offset.
(b) Contents of Notification. EEOC's notification of intent to
collect by Federal tax refund offset shall provide:
(1) The amount of the debt;
(2) That unless the debt is repaid within 60 days from the date of
EEOC's notification of intent, EEOC intends to collect the debt by
requesting the IRS to offset an amount equal to the amount of the debt
and all accumulating interest and other charges against any overpayment
of tax after liabilities subject to 26 U.S.C. 6402(a) and (c) have been
satisfied;
(3) A mailing address for forwarding any written correspondence and
a contact and a toll-free or collect telephone number for any
questions; and
(4) That the debtor may present evidence to EEOC that all or part
of the debt is not past due or legally enforceable by--
(i) Sending a written request for a review of the evidence to the
address provided in the notification;
(ii) Stating in the request for review the amount disputed and the
reasons why the debtor believes that the debt is not past-due or is not
legally enforceable; or
(iii) Including in the request for review any documents that the
debtor wishes to be considered to stating that the additional
information will be submitted within the remainder of the 60-day
period.
Sec. 1650.204 Reasonable attempt to notify.
In order to constitute a reasonable attempt to notify the debtor,
EEOC must have used a mailing address for the debtor obtained from the
IRS pursuant to 26 U.S.C. 6103(m)(2) within a period of 1 year
preceding the attempt to notify the debtor, unless EEOC receives clear
and concise notification from the debtor that notices from the agency
are to be sent to an address different from the address obtained from
IRS. Clear and concise notification means that the debtor has provided
the agency with written notification, including the debtor's name and
identifying number (as defined in 26 CFR 301.6109-1), the debtor's new
address, and the debtor's intent to have the agency notices sent to the
new address.
Sec. 1650.205 Consideration of evidence submitted as a result of
notification of intent. '
(a) Consideration of evidence. If, as a result of the notification
of intent, EEOC receives notice that the debtor will submit additional
evidence or receives additional evidence from the debtor within the
prescribed time period, any referral to the IRS will be stayed until
EEOC--
(1) Considers the evidence presented by the debtor;
(2) Determines whether or not all or a portion of the debt is still
past-due and legally enforceable; and
(3) Notifies the debtor of its determination.
Failure to submit the evidence within 60 days from the date of
notification will result in an automatic referral of the debt to IRS
without further action by EEOC.
(b) Notification to the debtor. Following its review of the
evidence, EEOC will issue a written decision notifying the debtor
whether EEOC has sustained, amended, or canceled its determination that
the debt is past-due and legally enforceable. The notice will advise
the debtor of any further action to be taken and explain the supporting
rationale for the decision.
(1) EEOC will notify the debtor of its intent to refer the debt to
the IRS for offset against the debtor's Federal income tax refund if it
sustains its decision that the debt is past-due and legally
enforceable. EEOC will also notify the debtor whether the amount of the
debt remains the same or is modified.
(2) EEOC will not refer the debt to the IRS for offset against the
debtor's Federal income tax refund if it reverses its decision that the
debt is past-due and legally enforceable.
Sec. 1650.206 Notification to Internal Revenue Service.
(a) Except as noted in paragraph (b) of this section, after EEOC's
initial notification and referral of a debt to IRS for offset against a
debtor's Federal income tax refund, EEOC will promptly notify IRS of
any changes in the notification, if EEOC--
(1) Determines that an error has been made with respect to the
information contained in the notification;
(2) Receives a payment or credits a payment to the account of the
debtor named in the notification that reduces the amount of the debt
referred to IRS for offset;
(3) Receives notification that the individual owing the debt has
filed for bankruptcy under title 11 of the United States Code or has
been adjudicated bankrupt and the debt has been discharged;
(4) Receives notification that an offset was made at a time when
the automatic stay provisions of 11 U.S.C. 362 were in effect; or
(5) Refunds all or part of the offset amount to the debtor.
(b) EEOC shall not request the IRS to increase the amount of a debt
owed by a debtor named in EEOC's original notification to IRS.
(c) If the amount of a debt is reduced after referral by EEOC and
offset by the IRS, EEOC will refund to the debtor any excess amount and
will promptly notify the IRS of any refund made by EEOC.
Sec. 1650.207 Administrative charges.
All administrative charges incurred in connection with the referral
of the debts to the IRS will be assessed on the debt and thus increase
the amount of the offset.
[FR Doc. 93-31710 Filed 12-30-93; 8:45 am]
BILLING CODE 6570-01-M
