[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

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

[CITE: 45CFR31.4]



[Page 100-101]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           AND HUMAN SERVICES

 

PART 31_TAX REFUND OFFSET--Table of Contents

 

Sec.  31.4  Certification and referral of debt.



    (a) Certification. The Secretary shall certify to FMS that:

    (1) The debt is past-due and legally enforceable in the amount 

submitted and that the Department will ensure that collections are 

properly credited to the debt;

    (2) Except in the case of a judgment debt or as otherwise allowed by 

law, the debt is referred within ten (10) years after the Department's 

right of action accrues;

    (3) The Department has made reasonable efforts to obtain payment of 

the debt, and has:

    (i) Submitted the debt to FMS for collection by offset and complied 

with the administrative offset provision of 31 U.S.C. 3716(a) and 

related regulations, to the extent that collection by administrative 

offset is not prohibited by statute;

    (ii) Notified, or made a reasonable attempt to notify, the debtor 

that the debt is past-due, and unless paid within 60 days of the date of 

the notice, the debt may be referred to Treasury for tax refund offset. 

For purposes of this regulation, the Department has made a reasonable 

attempt to notify the debtor if the agency uses the current address 

information contained in the Department's records related to the debt. 

If address validation is desired or necessary, the Department may obtain 

information from the IRS pursuant to 26 U.S.C. 6103(m)(2)(4) or (5).

    (iii) Given the debtor at least 60 days to present evidence that all 

or part of the debt is not past-due or not legally enforceable, 

considered any evidence presented by the debtor, and determined that the 

debt is past-due and legally enforceable; and

    (iv) Provided the debtor with an opportunity to make a written 

agreement to repay the debt; and

    (4) The debt is at least $25.

    (b) Referral. (1) The Secretary shall submit past-due, legally 

enforceable debt information for tax refund offset in the time and 

manner prescribed by the Department of the Treasury.

    (2) For each debt referred under this part, the Secretary will 

include the following information:

    (i) The name and taxpayer identifying number, as defined in 26 

U.S.C. 6109, of the debtor responsible for the debt;

    (ii) The amount of such past-due and legally enforceable debt;

    (iii) The date on which the debt became past-due; and

    (iv) The designation of the Department referring the debt.

    (c) Correcting and updating referral. (1) After referring a debt 

under this part, the Secretary shall promptly notify the Department of 

the Treasury if:

    (i) An error was made with respect to information transmitted to the 

Department of the Treasury;



[[Page 101]]



    (ii) The Department receives a payment or credits a payment to the 

account of a debtor referred for tax refund offset; or

    (iii) The debt amount is otherwise incorrect.

    (2) The Department shall provide the certification required under 

paragraph (a) of this section for any increases to amounts owed.

    (d) Rejection of certification. If the Department of Treasury 

rejects a certification because it does not comply with the requirements 

of paragraph (a) of this section, upon notification of the rejection and 

the reason(s) for rejection, the Secretary will resubmit the debt with a 

corrected certification.