[Federal Register Volume 60, Number 153 (Wednesday, August 9, 1995)]
[Rules and Regulations]
[Pages 40456-40457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19588]



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AGENCY FOR INTERNATIONAL DEVELOPMENT

22 CFR Part 213

RIN 0422-AA25


Collection of Debts by Tax Refund Offset

AGENCY: Agency for International Development.

ACTION: Final rule.

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SUMMARY: The Agency for International Development is amending its debt 
collection regulations to implement the tax refund offset provisions of 
31 U.S.C. 3720A.

DATES: Effective August 9, 1995.

FOR FURTHER INFORMATION CONTACT:
Jan W. Miller, Office of the General Counsel, Room 6881, N.S., Agency 
for International Development, Washington, DC 20523; (202) 647-6380.

SUPPLEMENTARY INFORMATION: A proposal to amend 22 CFR part 213 to allow 
the agency to recover delinquent debts owed the United States 
Government through the offset of tax refunds was published in the 
Federal Register on January 12, 1995, (60 FR 2911). No comments were 
received.

Regulatory Impact

    This rule is not a ``significant regulatory action'' under 
Executive Order No. 12866.

Environmental Impact

    This action does not constitute a major Federal action 
significantly affecting the quality of the human environment.

List of Subjects in 22 CFR Part 213

    Claims, salary offset.

    Accordingly, 22 CFR part 213 is amended as follows:
    1. The authority citation for part 213 is revised to read as 
follows:

    Authority: Sec. 621 of the Foreign Assistance Act of 1961, as 
amended, 22 U.S.C. 2381; subpart B also issued under 5 U.S.C. 5514; 
5 CFR 550, subpart K. Subpart C also issued under 31 U.S.C. 3720A.

    2. Part 213 is amended to add a new subpart C as follows:

PART 213--COLLECTION OF CLAIMS

* * * * *
Subpart C--Collection of Debts by Tax Refund Offset
213.21  Purpose.
213.22  Applicability and scope.
213.23  Administrative charges.
213.24  Pre-offset notice.
213.25  Reasonable attempt to notify and clear and concise 
notification.
213.26  Consideration of evidence and notification of decision.
213.27  Change in conditions after submission to IRS.
Subpart C--Collection of Debts by Tax Refund Offset


Sec. 213.21  Purpose.

    This subpart establishes procedures for AID to refer past due debts 
to the Internal Revenue Service (IRS) for offset against income tax 
refunds of taxpayers owing debts to AID.


Sec. 213.22  Applicability and scope.

    (a) This subpart implements 31 U.S.C. 3720A which authorizes the 
IRS to reduce a tax refund by the amount of a past due and legally 
enforceable debt owed to the United States.
    (b) A past due legally enforceable debt referable to the IRS is a 
debt which is owed to the United States and:
    (1) Except for judgement debt or other debts specifically exempt 
from this requirement, is referred within 10 years after AID's right of 
action accrues;
    (2) In the case of individuals, is at least $25.00.
    (3) In the case of business debtors is at least $100.00;
    (4) In the case of individual debtors, cannot be currently 
collected pursuant to the salary offset provisions of 5 U.S.C. 5514(a).
    (5) Is ineligible for or cannot be currently collected pursuant to 
the administrative offset provisions of 31 U.S.C. 3716;
    (6) Is the debt of a debtor (or in the case of an individual 
debtor, his or her spouse) for whom AID records do not show debtor has 
filed for bankruptcy under title 11 of the United States Code or for 
whom AID can clearly establish at the time of the referral that an 
automatic stay under 11 U.S.C. 362 has been lifted or is no longer in 
effect;
    (7) Has been disclosed by AID to a consumer reporting agency as 
authorized by 31 U.S.C. 3711(f); and
    (8) For which AID has given notice, considered any evidence, and 
determined that the debt is past-due and legally enforceable under the 
provisions of this subpart.


Sec. 213.23  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. 213.24  Pre-Offset Notice.

    (a) Before AID refers a debt to the IRS, it will notify or make a 
reasonable attempt to notify the debtor that:
    (1) The debt is past due;
    (2) Unless repaid within 60 calendar days thereafter, the debt will 
be referred to the IRS for offset against any overpayment of tax;
    (3) The debtor has at least 60 days from the date of the notice to 
present evidence that all or part of such debt is 

[[Page 40457]]
not past-due or not legally enforceable; and
    (4) AID will consider any evidence presented by the debtor and 
determine whether any part of such debt is past-due and legally 
enforceable.
    (b) The notice will explain to the debtor the manner in which the 
debtor may present such evidence to AID.


Sec. 213.25  Reasonable attempt to notify and clear and concise 
notification.

    (a) Reasonable attempt to notify. AID will have made a reasonable 
attempt to notify the debtor under Sec. 213.24(a) it is 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), unless AID receives 
clear and concise notification from the debtor that notices are to be 
sent to an address different from the address obtained from the IRS.
    (b) Clear and concise notification. Clear and concise notification 
means that the debtor has provided AID with written notification 
containing the debtor's name and identifying number (as defined in the 
Internal Revenue Code, 26 U.S.C. 6109), the debtor's new address, and 
the debtor's intent to have the notices sent to the new address.


Sec. 213.26  Consideration of evidence and notification of decision.

    (a) AID will give the debtor at least 60 days from the date of the 
pre-offset notice to present evidence. Evidence that collection of the 
debt is affected by a bankruptcy proceeding involving the debtor shall 
bar referral of the debt.
    (b) If the evidence presented is not considered by an employee of 
AID but by an entity or person acting for AID, the debtor will have at 
least 30 days from the date the entity or person notifies the debtor 
that all or part of the debt is past-due and legally enforceable to 
request review by an employee of AID of any unresolved dispute.
    (c) AID will provide the debtor with its decision and the decision 
of any entity or person acting for AID on to whether all or part of the 
debt is past-due and legally enforceable. The decision will include a 
statement of the basis or principal bases for the decision.


Sec. 213.27  Change in conditions after submission to IRS.

    AID will promptly notify the IRS if, after submission of a debt to 
the IRS for offset, AID:
    (a) Determines that an error has been made with respect to the 
information submitted to the IRS;
    (b) Receives a payment or credits a payment, other than an IRS 
offset, to the account of the debtor;
    (c) Receives notice that the debtor has filed for bankruptcy under 
title 11 of the United States Code or the debt has been discharged in 
bankruptcy;
    (d) Receives notice that an offset was made at the time when the 
automatic stay provisions of 11 U.S.C. 362 were in effect;
    (e) Receives notice that the debt has been extinguished by death; 
or
    (f) Refunds all or part of the offset amount to the debtor.

    Dated: March 21, 1995.
Donald K. Charney,
Chief Financial Officer.
[FR Doc. 95-19588 Filed 8-8-95; 8:45 am]
BILLING CODE 6116-01-M