45 C.F.R. Subpart D—Tax Refund Offset
Title 45 - Public Welfare
(a) The regulations in this subpart implement 31 U.S.C. 3720A, which authorizes the Treasury to reduce a tax refund by the amount of a past-due, legally enforceable debt owed to a Federal agency. (b) For purposes of this section, a past-due, legally enforceable debt referable to the Treasury for tax refund offset is a debt that is owed to the Corporation and: (1) Is at least $25.00; (2) Except in the case of a judgment debt, has been delinquent for at least three months and will not have been delinquent more than 10 years at the time the offset is made; (3) With respect to which the Corporation has: (i) Given the debtor at least 60 days to present evidence that all or part of the debt is not past due or legally enforceable; (ii) Considered evidence presented by the debtor; and (iii) Determined that an amount of the debt is past due and legally enforceable; (4) With respect to which the Corporation has notified or has made a reasonable attempt to notify the debtor that: (i) The debt is past due, and (ii) Unless repaid within 60 days of the date of the notice, the debt may be referred to the Treasury for offset against any refund of overpayment of tax; and (5) All other requirements of 31 U.S.C. 3720A and the Treasury regulations relating to the eligibility of a debt for tax return offset (31 CFR 285.2) have been satisfied. (a) The Corporation's Accounting and Financial Management Services Division will be the point of contact with the Treasury for administrative matters regarding the offset program. (b) The Corporation will ensure that the procedures prescribed by the Treasury are followed in developing information about past-due debts and submitting the debts to the Treasury. (c) The Corporation will submit to the Treasury a notification of a taxpayer's liability for past-due legally enforceable debt. This notification will contain the following: (1) The name and taxpayer identification number of the debtor; (2) The amount of the past-due and legally enforceable debt; (3) The date on which the original debt became past due; (4) A statement certifying that, with respect to each debt reported, all of the requirements of §2506.40(b) have been satisfied; and (5) Any other information as prescribed by Treasury. (d) For purposes of this section, notice that collection of the debt is stayed by a bankruptcy proceeding involving the debtor will bar referral of the debt to the Treasury. (e) The Corporation will promptly notify the Treasury to correct data when the Corporation: (1) Determines that an error has been made with respect to a debt that has been referred; (2) Receives or credits a payment on the debt; or (3) Receives notice that the person owing the debt has filed for bankruptcy under title 11 of the United States Code and the automatic stay is in effect or has been adjudicated bankrupt and the debt has been discharged. (f) When advising debtors of the Corporation's intent to refer a debt to the Treasury for offset, the Corporation will also advise debtors of remedial actions (see §§2506.9 and 2506.14 through 2506.16 of this part) available to defer the offset or prevent it from taking place.
Title 45: Public Welfare
PART 2506—COLLECTION OF DEBTS
Subpart D—Tax Refund Offset
§ 2506.40 Which debts can the Corporation refer to Treasury for collection by offsetting tax refunds?
§ 2506.41 What are the Corporation's procedures for collecting debts by tax refund offset?
