[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: 45CFR31.7] [Page 99] TITLE 45--PUBLIC WELFARE AND HUMAN SERVICES PART 31--REFERRAL OF DEBT TO IRS FOR TAX REFUND OFFSET--Table of Contents Sec. 31.7 Application of offset funds: Single debt. If the debtor does not timely notify the Secretary that the debtor is exercising a right described in Sec. 31.3, the Secretary will notify the IRS of the debt 60 calendar days from the date of the Department's Notice of Intent, and will request that the amount of the debt be offset against any amount payable by the IRS as refund of Federal taxes paid. Normally, recovered funds will be applied first to any special charges provided for in HHS regulations or contracts, then to interest, and finally, to the principal owed by the debtor.