[Federal Register Volume 63, Number 167 (Friday, August 28, 1998)]
[Rules and Regulations]
[Page 46140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22939]



[[Page 46139]]

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Part VII





Department of the Treasury





_______________________________________________________________________



Fiscal Service



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31 CFR Part 285



Offset of Tax Refund Payments to Collect Past-Due, Legally Enforceable 
Nontax Debt; Final Rule

  Federal Register / Vol. 63, No. 167 / Friday, August 28, 1998 / Rules 
and Regulations  

[[Page 46140]]



DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 285

RIN 1510-AA62


Offset of Tax Refund Payments to Collect Past-Due, Legally 
Enforceable Nontax Debt

AGENCY: Financial Management Service, Fiscal Service, Treasury.

ACTION: Final rule.

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SUMMARY: This final rule adopts the interim rule, published in the 
Federal Register on June 25, 1997, concerning the tax refund offset 
procedures applicable to the collection of delinquent nontax debt owed 
to Federal agencies.

DATES: This rule is effective September 28, 1998. This rule applies to 
tax refund payments payable after January 1, 1998.

FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Financial Program 
Specialist, at (202) 874-6660; Martin Mills, Treasury Offset Program, 
at (202) 874-8700; Ellen Neubauer or Ronda Kent, Senior Attorneys, at 
(202) 874-6680. A copy of this final rule is being made available for 
downloading from the Financial Management Service web site at the 
following address: http://www.fms.treas.gov.

SUPPLEMENTARY INFORMATION:

Background

    On June 25, 1997, the Financial Management Service (FMS) published 
in the Federal Register an interim rule with request for comments 
concerning the tax refund offset procedures applicable to the 
collection of delinquent nontax debt owed to Federal agencies (62 FR 
34175, June 25, 1997). The closing date for the submission of comments 
was July 25, 1997.
    Since publication of the interim rule, FMS and the Internal Revenue 
Service have delayed the merger of the tax refund offset program with 
the Treasury Offset Program to January 1, 1999. However, the procedural 
changes affecting the prerequisites to participation in the tax refund 
offset program remain effective for all tax refund payments payable 
after January 1, 1998. Therefore, the interim rule may be adopted 
without changing the effective date.

Comments on the Interim Rule

    By the close of the comment period, FMS received one comment on the 
interim rule from one organization commenting on behalf of a provider 
of tax-related financial services and a financial institution. The 
commenter noted that the rule does not require agencies to report debts 
to credit bureaus before submitting them for collection by tax refund 
offset. The commenter suggested that the rule should establish a time 
frame within which an agency is required to report a delinquent debt to 
a credit bureau.
    This rule does not include credit bureau reporting as a 
prerequisite for participation, or as a requirement for continued 
participation, in the tax refund offset program. Section 31001(k) of 
the Debt Collection Improvement Act of 1996, Pub. L. 104-134, 110 Stat. 
1321-358 (Apr. 26, 1996), codified at 31 U.S.C. 3711(e), mandates that 
agencies report consumer debt to credit bureaus. Therefore, it is not 
necessary to address credit bureau reporting in the tax refund offset 
program and no change has been made to the final rule.

Adoption as Final Rule

    Accordingly, the interim rule adding 31 CFR part 285 which was 
published at 62 FR 34175 on June 25, 1997, is adopted as a final rule 
without change.

    Dated: August 21, 1998.
Richard L. Gregg,
Commissioner.
[FR Doc. 98-22939 Filed 8-27-98; 8:45 am]
BILLING CODE 4810-35-P