[Code of Federal Regulations]
[Title 45, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR31.1]

[Page 97]
 
                        TITLE 45--PUBLIC WELFARE
 
                           AND HUMAN SERVICES
 
PART 31--REFERRAL OF DEBT TO IRS FOR TAX REFUND OFFSET--Table of Contents
 
Sec. 31.1  Scope.

    (a) The standards set forth in Secs. 31.1 through 31.11 are the 
Department's procedures for requesting the Internal Revenue Service 
(IRS) to offset tax refunds due taxpayers who have a past due debt 
obligation to the Department. These procedures are authorized by the 
Deficit Reduction Act of 1984 (31 U.S.C. 3720A), as implemented by 
regulation at 26 CFR 301.6402-6T, and apply to the collection of debts 
as authorized by common law, by 31 U.S.C. 3716, or under other statutory 
authority.
    (b) The Secretary will use the IRS tax refund offset to collect 
claims which are liquidated or certain in amount, past due and legally 
enforceable, and which are eligible for tax refund offset under 
regulations issued by the Secretary of the Treasury.
    (c) Except as provided in paragraph (d) of this section, the 
Secretary will not report debts to the IRS except for the purpose of 
using the offset procedures described in Secs. 31.1 through 31.11. Debts 
of less than $25.00, exclusive of interest and other charges, will not 
be reported.
    (d) If not legally enforceable because of the lapse of the statute 
of limitations but otherwise valid, a debt amounting to over $600 will 
be reported to the IRS as a discharged debt on Form 1099G. (Form 1099G 
is an information return which government agencies file with the IRS to 
report discharged debt, and the discharged amount is considered as 
income to the taxpayer.) [See Sec. 31.9; 45 CFR 30.31(b).]