[Code of Federal Regulations]

[Title 45, Volume 3]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR608.4]



[Page 109-110]

 

                        TITLE 45--PUBLIC WELFARE

 

                 CHAPTER VI--NATIONAL SCIENCE FOUNDATION

 

PART 608_CLAIMS COLLECTION AND ADMINISTRATIVE OFFSET--Table of Contents

 

Sec. 608.4  Reductions of tax refunds.



    (a) In accordance with regulations and guidance issued by the 

Secretary of the Treasury at 26 CFR 301.6402-6 and the requirements of 

31 U.S.C. 3720A, NSF will participate in the Federal Tax Refund Offset 

Program for offset against income tax refunds of persons owing past due 

legally enforceable debts to NSF.

    (b) For purposes of this section, a past-due legally enforceable 

debt referable to the IRS is a debt which is owed to the United States 

and:

    (1) Except in the case of a judgment debt, has been delinquent for 

at least three months but has not been delinquent for more than ten 

years at the time the offset is made;

    (2) Cannot be currently collected pursuant to the salary offset 

provisions of 5 U.S.C. 5514(a)(1);

    (3) 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 NSF against amounts 

payable to or on behalf of the debtor by or on behalf of NSF;

    (4) With respect to which NSF has notified or has made a reasonable 

attempt to notify the taxpayer that the debt is past-due and, unless 

repaid within 60 days thereafter, the debt will be referred to the IRS 

for offset against any overpayment of tax;

    (5) With respect to which NSF has given the taxpayer 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 the 

evidence presented by such taxpayer, and has determined that an amount 

of such debt is past-due and legally enforceable;

    (6) Has been disclosed by NSF to a consumer reporting agency as 

authorized by 31 U.S.C. 3711(f), unless a consumer reporting agency 

would be prohibited from using such information by 15 U.S.C. 1681c, or 

unless the amount of the debt does not exceed $100.00;

    (7) Is at least $25.00;

    (8) All other requirements of 31 U.S.C. 3720A and the Internal 

Revenue Service regulations at 26 CFR 301.6402-6 relating to the 

eligibility of a debt for tax return offset have been satisfied.

    (c) NSF will make a request for reduction of an IRS tax refund only 

after the NSF determines that an amount is owed and past-due and 

provides the debtor with 60 days written notice. NSF's notice of 

intention to collect by IRS tax refund offset (Notice of Intent) will 

state:

    (1) The amount of the debt;

    (2) That unless the debt is repaid within 60 days from the date of 

the NSF's Notice of Intent, NSF intends to collect the debt by 

requesting the IRS to reduce any amounts payable to the debtor as 

refunds of Federal taxes paid by an amount equal to the amount of the 

debt and all accumulated interest and other charges;

    (3) That the debtor has a right to present evidence that all or part 

of the debt is not past-due or legally enforceable; and

    (4) A mailing address for forwarding any written correspondence and 

a contact name and phone number for any questions.

    (d) A debtor who receives a Notice of Intent has the right to 

present evidence that all or part of the debt is not past-due or not 

legally enforceable. To exercise this right, the debtor must:

    (1) Send a written request for a review of the evidence to the 

address provided in the notice.

    (2) State in the request the amount disputed and the reasons why the 

debtor believes that the debt is not past-due or is not legally 

enforceable.

    (3) Include with the request any documents which the debtor wishes 

to be considered or state that additional information will be submitted 

within the remainder of the 60-day period.

    (e) The failure of a debtor to respond as provided in paragraph (d) 

of this section will result in an automatic referral of the debt to the 

IRS without further action by NSF. If the debtor responds, NSF will 

consider all available evidence related to the debt and issue a written 

determination, including supporting rationale, whether its prior 

determination that the debt is past-due and legally enforceable is 

sustained, amended, or canceled. Before this determination is made the 

matter shall be referred to the NSF Office of General Counsel for legal 

review. NSF will



[[Page 110]]



give prompt notification of this determination to the debtor.