[Federal Register Volume 59, Number 6 (Monday, January 10, 1994)]
[Rules and Regulations]
[Pages 1277-1278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11]


[[Page Unknown]]

[Federal Register: January 10, 1994]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 105-57

 

Collection of Debts by Federal Tax Refund Offset

AGENCY: General Services Administration.

ACTION: Final rule.

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SUMMARY: This document amends the General Services Administration (GSA) 
Regulations by adding procedures to implement the Federal Tax Refund 
Offset Program in GSA. Participation in the program is mandated by the 
Cash Management Improvement Act amendments of 1992. The GSA expects to 
improve the collection of delinquent debts due the agency by 
participation in the Federal Tax Refund Offset Program.

EFFECTIVE DATE: January 10, 1994.

FOR FURTHER INFORMATION CONTACT:
Bernie Kanzler, Office of Finance, Financial Information Control 
Division (BCD), (202-501-2923).

SUPPLEMENTARY INFORMATION: The General Services Administration (GSA) 
has determined that this rule is not a significant rule for the 
purposes of Executive Order (E.O.) 12866 of September 10, 1993, because 
it is not likely to result in an economic impact exceeding $100 million 
or more, to have a material adverse effect on the economy, environment 
or safety, to interfere with the actions of another agency, to 
materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs, or to raise novel legal or policy issues 
arising out of legal mandates, the President's priorities, or the 
principles set forth in E.O. 12866. Therefore, a regulatory assessment 
has not been prepared. GSA has based all administrative decisions 
underlying this rule on adequate information concerning the need for 
and the consequence of this rule; has determined that the potential 
benefits to society from this rule outweigh the potential costs; has 
maximized the net benefits; and has chosen the alternative approach 
involving the least net cost to society.

Regulatory Flexibility Act

    The General Services Administration has determined that this rule 
will not have a significant economic impact on a substantial number of 
small entities under the Regulatory Flexibility Act, 5 U.S.C. 601 et 
seq.).

List of Subjects in 41 CFR Part 105-57

    Administrative practice and procedure, Claims, Income taxes.

    Accordingly, 41 CFR chapter 105 is amended by adding part 105-57 to 
read as follows:

PART 105-57--COLLECTION OF DEBTS BY TAX REFUND OFFSET

Sec.
105-57.001  Purpose.
105-57.002  Applicability and scope.
105-57.003  Administrative charges.
105-57.004  Reasonable attempt to notify.
105-57.005  Notice requirement before offset.
105-57.006  Consideration of evidence.
105-57.007  Change in conditions after submission to IRS.

    Authority: 31 U.S.C. 3720A.


Sec. 105-57.001  Purpose.

    This part establishes procedures for the General Services 
Administration (GSA) to refer past due debts to the Internal Revenue 
Service (IRS) for offset against income tax refunds of taxpayers owing 
debts to GSA.


Sec. 105-57.002  Applicability and scope.

    (a) This part implements 31 U.S.C. 3720A which authorizes the IRS 
to reduce a tax refund by the amount of a past due legally enforceable 
debt owed to the United States.
    (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) Has been delinquent for at least three months but, except in 
the case of a judgment debt, has not been delinquent more than ten 
years at the time the offset is made;
    (2) With respect to which, GSA 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 
such evidence, and has determined that the debt is past due and legally 
enforceable;
    (3) Cannot be currently collected pursuant to the salary offset 
provisions of 5 U.S.C. 5514(a)(1);
    (4) Cannot be currently collected pursuant to the administrative 
offset provisions of 31 U.S.C. 3716;
    (5) Has been disclosed by GSA to a credit reporting agency, 
including a consumer reporting agency as authorized by 31 U.S.C. 
3711(f);
    (6) With respect to which, GSA 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, will be referred to the 
IRS for offset against any income tax refunds due the taxpayer;
    (7) Is at least $25.00;
    (8) All other requirements of 31 U.S.C. 3720A and the Department of 
the Treasury regulations relating to eligibility of a debt for tax 
refund offset, at 26 CFR 301.6402-6T, have been satisfied.


Sec. 105-57.003  Administrative charges.

    All administrative charges incurred in connection with the referral 
of debts to the IRS will be added to the debt, thus increasing the 
amount of the offset.


Sec. 105-57.004  Reasonable attempt to notify.

    In order to constitute a reasonable attempt to notify the debtor, 
GSA must have used a mailing address for the debtor obtained from the 
IRS pursuant to the Internal Revenue Code, 26 U.S.C. 6103 (m)(2) or 
(m)(4), within one year preceding the attempt to notify the debtor.


Sec. 105-57.005  Notice requirement before offset.

    The notification provided by GSA to the debtor will inform the 
debtor how to go about presenting evidence to GSA that all or part of 
the debt is either not past due or is not legally enforceable.


Sec. 105-57.006  Consideration of evidence.

    Evidence submitted by the debtor will be considered by officials or 
employees of GSA. Any determination that an amount of such debt is past 
due and legally enforceable will be made by such officials or 
employees. Evidence that the debt is affected by a bankruptcy 
proceeding involving the debtor shall bar referral of the debt.


Sec. 105-57.007  Change in conditions after submission to IRS.

    If the amount of a debt is reduced after submission by GSA and 
offset by IRS, GSA will refund to the debtor any excess amount and will 
promptly notify IRS of the refund. GSA will also promptly notify the 
IRS if, after submission of a debt to the IRS for offset, GSA:
    (a) Determines that an error has been made with respect to the 
information submitted;
    (b) Receives a payment or credits a payment to an account 
submitted; or
    (c) Receives notification that the debtor has filed for bankruptcy 
under Title 11 of the United States Code or has been adjudicated 
bankrupt and the debt has been discharged.

    Dated: November 30, 1993.
Dennis J. Fischer,
Chief Financial Officer.
[FR Doc. 94-11 Filed 1-7-94; 8:45 am]
BILLING CODE 6820-34-M