[Code of Federal Regulations]
[Title 10, Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR15.60]

[Page 304-305]
 
                            TITLE 10--ENERGY
 
                CHAPTER I--NUCLEAR REGULATORY COMMISSION
 
PART 15--DEBT COLLECTION PROCEDURES--Table of Contents
 
        Subpart D--Suspension or Termination of Collection Action
 
Sec. 15.60  Discharge of indebtedness; reporting requirements.

    (a) Before discharging a delinquent debt (also referred to as a 
close out of the debt), the NRC shall take all appropriate steps to 
collect the debt in accordance with 31 U.S.C. 3711(g), including, as 
applicable, administrative offset; tax refund offset; Federal salary 
offset; referral to Treasury, Treasury-designated debt collection 
centers, or private collection contractors; credit bureau reporting; 
wage garnishment; litigation; and foreclosure. Discharge of indebtedness 
is distinct from termination or suspension of collection activity under 
10 CFR 15.55 and 15.57 and is governed by the Internal Revenue Code. 
When collection action on a debt is suspended or terminated, the debt 
remains delinquent, and further collection action may be pursued at a 
later date. When the NRC discharges a debt in full or in part, further 
collection action is prohibited. Therefore, the NRC will make the 
determination that collection action is no longer warranted before 
discharging a debt. Before discharging a debt, the NRC must terminate 
debt collection action.
    (b) Section 3711(i), title 31, United States Code, requires agencies 
to sell a delinquent nontax debt upon termination of collection action 
if Treasury determines such a sale is in the best interests of the 
United States. Since the discharge of a debt precludes any further 
collection action (including the sale of a delinquent debt), the NRC may 
not discharge a debt until the requirements of 31 U.S.C. 3711(i) have 
been met.
    (c) Upon discharge of an indebtedness, the NRC shall report the 
discharge to the IRS in accordance with the requirements of 26 U.S.C. 
6050P and 26 CFR 1.6050P-1. The NRC may request Treasury or a Treasury-
designated debt collection center to file a discharge report to the IRS 
on the NRC's behalf.

[[Page 305]]

    (d) When discharging a debt, the NRC shall request that litigation 
counsel release any liens of record securing the debt.

[67 FR 30323, May 6, 2002]