[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

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

[CITE: 14CFR1261.407]



[Page 343-344]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

                          SPACE ADMINISTRATION

 

PART 1261_PROCESSING OF MONETARY CLAIMS (GENERAL)--Table of Contents

 

 Subpart 1261.4_Collection of Civil Claims of the United States Arising 

      Out of the Activities of the National Aeronautics and Space 

                          Administration (NASA)

 

Sec. 1261.407  Demand for payment; limitation periods.



    (a) Appropriate written demands shall be made promptly upon a debtor 

of the United States in terms which inform the debtor of the 

consequences of failure to cooperate. A total of three progressively 

stronger written demands at not more than 30-day intervals will normally 

be made unless a response to the first or second demand indicates that a 

further demand would be futile and the debtor's response does not 

require rebuttal. In determining the timing of demand letters, NASA will 

give due regard to the need to act promptly so that, as a general rule, 

if necessary to refer the debt to the Department of Justice for 

litigation, such referral can be made within one year of the agency's 

final determination of the fact and the amount of the debt. When 

necessary to protect the Government's interests (for example, to prevent 

the statute of limitations, 28 U.S.C. 2415, from expiring), written 

demand may be preceded by other appropriate actions, including immediate 

referral for litigation.

    (b) The initial demand letter should inform the debtor of:

    (1) The basis for the indebtedness and whatever rights the debtor 

may have to seek review within the agency;

    (2) The applicable standards for assessing interest, penalties, and 

administrative costs (Sec. 1261.412); and

    (3) The date by which payment is to be made, which normally should 

be not more than 30 days from the date that the initial demand letter 

was mailed or hand delivered. The responsible official should exercise 

care to ensure that demand letters are mailed or hand delivered on the 

same day that they are actually dated. Apart from these requirements, 

there is no prescribed format for demand letters. However, as 

appropriate to the circumstances, the responsible official may consider 

including, either in the initial demand letter or in subsequent letters, 

such items the NASA's willingness to discuss alternative methods of 

payment, or intentions with respect to referral of the debt to the 

Department of Justice for litigation.

    (c) NASA should respond promptly to communications from the debtor, 

within 30 days whenever feasible, and should advise debtors who dispute 

the debt to furnish available evidence to support their contentions.

    (d) If either prior to the initiation of, any time during, or after 

completion of the demand cycle, a determination to pursue offset is 

made, then the procedures specified in subparts 1261.5 and



[[Page 344]]



1261.6, as applicable, should be followed. The availability of funds for 

offset and NASA's determination to pursue it release the agency from the 

necessity of further compliance with paragraphs (a), (b), and (c) of 

this section. If the agency has not already sent the first demand 

letter, the agency's written notification of its intent to offset must 

give the debtor the opportunity to make voluntary payment, a requirement 

which will be satisfied by compliance with the notice requirements of 

Sec. 1261.502 or Sec. 1261.603(a), as applicable.

    (e) NASA should undertake personal interviews with its debtors 

whenever this is feasible, having regard for the amounts involved and 

the proximity of agency representatives to such debtors; and may attempt 

to effect compromise of the claim in accordance with Sec. 1261.414.

    (f) When a debtor is employed by the Federal government or is a 

member of the military establishment or the Coast Guard, and collection 

by offset cannot be accomplished in accordance with subpart 1261.6, the 

employing agency will be contacted for the purpose of arranging with the 

debtor for payment of the indebtedness by allotment or otherwise in 

accordance with section 206 of Executive Order 11222, May 8, 1965, 30 FR 

6469, which provides that: ``An employee is expected to meet all just 

financial obligations, especially those--such as Federal, State, or 

local taxes--which are imposed by law'' (4 CFR 102.81).