[Federal Register Volume 63, Number 196 (Friday, October 9, 1998)]
[Notices]
[Pages 54524-54525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27070]


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DEPARTMENT OF THE TREASURY

Fiscal Service


Agency Taxpayer Identifying Number Implementation Reports

AGENCY: Financial Management Service, Fiscal Service, Treasury.

ACTION: Policy statement.

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SUMMARY: The Debt Collection Improvement Act of 1996 requires that 
executive agencies include the taxpayer identifying number (TIN) of 
each payee on certified payment vouchers which are submitted to a 
disbursing official. The Financial Management Service (FMS), the 
Department of the Treasury disbursing agency, and other executive 
branch disbursing agencies are responsible for examining certified 
payment vouchers to determine whether such vouchers are in the proper 
form. 31 U.S.C. 3325(a)(2)(A). To ensure that executive branch agencies 
submit payment certifying vouchers in a form which includes payee TINs, 
FMS is requiring each executive agency to prepare and submit an agency 
TIN Implementation Report documenting agency compliance with the TIN 
requirement. This Policy Statement describes agency TIN Implementation 
Report requirements.

DATES: This policy statement takes effect October 9, 1998. Reports must 
be received by April 9, 1999.

ADDRESSES: Reports should be sent to Dean Balamaci, Director, Agency 
Liaison Division, Debt Management Services, Financial Management 
Service, Room 154, 401 14th Street SW, Washington, DC 20227.

FOR FURTHER INFORMATION CONTACT: Dean Balamaci (Director, Agency 
Liaison Division, Debt Management Services) at 202-874-6660, Sally 
Phillips (Policy Analyst) at 202-874-6749, or James Regan (Attorney-
Advisor) at 202-874-6680. This document is available on the Financial 
Management Service's web site: http://www.fms.treas.gov.

SUPPLEMENTARY INFORMATION:

Background

    On April 26, 1996, the Debt Collection Improvement Act of 1996 
(DCIA) was enacted as Chapter 10 of the Omnibus Consolidated 
Rescissions and Appropriations Act of 1996, Pub. L. 104-134, 110 Stat. 
1321-358. A major purpose of the DCIA is to enhance the government-wide 
collection of delinquent debts owed to the Federal Government. The DCIA 
was effective on April 26, 1996.
    Section 31001(d)(2) of the DCIA, codified at 31 U.S.C. 3716(c), 
generally requires Federal disbursing officials to offset an eligible 
Federal payment to a payee to satisfy a delinquent non-tax debt owed by 
the payee to the United States. A Federal disbursing official will 
conduct such an offset when the name and Taxpayer Identifying Number 
(TIN) of the payee match the name and TIN of the delinquent debtor, 
provided all other requirements for offset have been met. This process, 
known as ``centralized offset,'' also may be used to collect delinquent 
debts owed to States, including past-due child support. The Department 
of the Treasury, Financial Management Service (FMS) is responsible for 
implementing the DCIA, including the centralized offset authority.
    Section 31001(y) of the DCIA, codified at 31 U.S.C. 3325(d), 
facilitates centralized offset by requiring the head of an executive 
agency or an agency certifying official to include the TINs of payees 
on certified payment vouchers which are submitted to Federal disbursing 
officials. FMS, as the Department of Treasury disbursing agency, 
disburses more than 850 million Federal payments annually. See 31 
U.S.C. 3321. FMS and other executive branch disbursing agencies are 
responsible for examining certified payment vouchers to determine 
whether such vouchers are in the proper form. 31 U.S.C. 3325(a)(2)(A).
    To ensure that executive branch agencies submit payment certifying 
vouchers in a form which includes payee TINs, FMS is requiring each 
executive agency to prepare and submit an agency TIN Implementation 
Report to FMS documenting agency compliance with the TIN requirement. 
Agency TIN Implementation Reports must be received by FMS within six 
months of the date of publication of this Policy Statement. Treasury 
Financial Manual Bulletin (TFM) No. 99-02 is being published 
concurrently with this Policy Statement. TFM Bulletin No. 99-02 
provides detailed instructions to agencies on TIN Implementation Report 
requirements and format.
    FMS will review agency TIN Implementation Reports to determine the 
status of compliance with the statutory requirement to include TINs on 
payment vouchers. FMS also will evaluate the effectiveness and 
credibility of proposed agency strategies to achieve compliance through 
the elimination of barriers to the collection and providing of TINs. 
FMS will formulate guidance to assist agencies in overcoming or 
reconciling such barriers. FMS will monitor payment vouchers to ensure 
that agencies are meeting compliance goals and time frames as 
identified in Implementation Reports.
    FMS will submit a report to Congress on agency payment voucher TIN 
compliance as part of its DCIA consolidated report to Congress. See 31 
U.S.C. 3711 note; 31 U.S.C. 3719 note; see also 142 Cong. Rec. H4091 
(April 25, 1996) (statement of Rep. Horn) (``Congress directs the 
disbursing official of the Secretary of Treasury * * * to survey agency 
compliance

[[Page 54525]]

with this section [TIN payment voucher requirement] and include the 
results of this survey in the consolidated debt collection report to 
Congress * * *''). In the event that agency TIN Implementation Report 
strategies fail to achieve compliance with the statutory payment 
voucher TIN requirement, FMS may take other measures to ensure 
compliance.
    FMS made the determination to publish this Policy Statement 
requiring agencies to submit Implementation Reports after reviewing 
comments submitted by agencies in response to a proposed rule issued by 
FMS on September 2, 1997 (62 FR 46428). The proposed rule, if 
finalized, would require disbursing officials to reject payment 
requests on certified payment vouchers lacking TINs. The comments 
received in response to the proposed rule indicate that many agencies 
have not yet overcome significant barriers impeding the collection and 
providing of TIN information. Rejecting payment requests lacking TINs 
would not resolve these barriers, but would unduly interfere with the 
timely disbursement of Federal funds. Under these circumstances, FMS 
determined that, rather than finalizing the proposed rule, the review 
of required Implementation Reports and the promulgation of guidance by 
FMS to assist agencies in overcoming or reconciling barriers to TIN 
collection would more effectively ensure compliance with the statutory 
TIN requirement.
    This approach is consistent with the consensus of the inter-agency 
TIN workgroup established in the fall of 1997 and led by FMS. The 
inter-agency TIN workgroup is one of three workgroups tasked by the 
Office of Management and Budget and the Chief Financial Officers 
Council to resolve issues related to implementation processes needed to 
achieve the goals and objectives of the DCIA. The TIN workgroup 
strongly supported a planning and review process (consistent with 
Implementation Report requirements) as a viable alternative to the 
approach in the proposed rule to reject payment vouchers lacking TINs. 
FMS received input from the inter-agency workgroup in the course of 
drafting agency Implementation Report requirements.
    Accordingly, FMS has concluded that the publication of the Policy 
Statement, in lieu of a final rule, would more effectively resolve the 
underlying barriers to collecting TINs, and therefore, increase 
compliance with the DCIA. FMS has published elsewhere in this issue of 
the Federal Register a withdrawal of the notice of proposed rulemaking 
concurrently with the publication of this Policy Statement.

Policy Statement

    Section 31001(y) of the Debt Collection Improvement Act of 1996, 
codified at 31 U.S.C. 3325(d) requires the head of an executive agency 
or an agency certifying official to include the TINs of payees on 
certified payment vouchers which are submitted to Federal disbursing 
officials pursuant to 31 U.S.C. 3325(a). Each executive agency shall 
prepare and submit an agency TIN Implementation Report to FMS 
documenting agency compliance with this statutory requirement. Agency 
TIN Implementation Reports must be received by FMS within six months of 
the date of publication of this Policy Statement.
    Agency TIN Implementation Reports shall indicate the current status 
of agency compliance with the requirement to furnish TINs with each 
certified payment voucher; strategies for achieving compliance; 
barriers to collection and providing of TINs; and strategies for 
resolving those barriers.
    FMS will review agency TIN Implementation Reports to determine the 
status of agency compliance. FMS also will evaluate the effectiveness 
and credibility of proposed agency strategies to achieve compliance 
through the elimination of barriers to the collection and providing of 
TINs. FMS will formulate guidance to assist agencies in overcoming or 
reconciling such barriers. FMS will monitor payment vouchers to ensure 
that agencies are meeting compliance goals and time frames as 
identified in Implementation Reports.
    Specific guidance on Implementation Report requirements and format, 
and on payment system requirements relating to TINs, will be provided 
in Treasury Financial Manual Bulletin (TFM) No. 99-02 and on FMS' web 
site: http://www.fms.treas.gov. TFM Bulletin No. 99-02 is being 
published concurrently with this Policy Statement.
    FMS will submit a report to Congress on agency payment voucher TIN 
compliance as part of its DCIA consolidated report to Congress. See 31 
U.S.C. 3711 note; 31 U.S.C. 3719 note; see also 142 Cong. Rec. H4091 
(April 25, 1996) (statement of Rep. Horn) (``Congress directs the 
disbursing official of the Secretary of Treasury * * * to survey agency 
compliance with this section [TIN payment voucher requirement] and 
include the results of this survey in the consolidated debt collection 
report to Congress * * *''). In the event that agency TIN 
Implementation Report strategies fail to achieve compliance with the 
statutory payment voucher TIN requirement, FMS may take other measures 
to ensure compliance.

    Dated: October 5, 1998.
Richard L. Gregg,
Commissioner.
[FR Doc. 98-27070 Filed 10-8-98; 8:45 am]
BILLING CODE 4810-35-P