[Federal Register Volume 76, Number 203 (Thursday, October 20, 2011)]
[Rules and Regulations]
[Pages 65107-65109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-27221]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404, 408, 416, and 422
[Docket No. SSA-2010-0010]
RIN 0960-AH19
Recovery of Delinquent Debts--Treasury Offset Program
Enhancements
AGENCY: Social Security Administration.
ACTION: Final rule.
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SUMMARY: We are amending our Tax Refund Offset (TRO) and Administrative
Offset regulations. We are conforming our regulations to those of the
Department of the Treasury (Treasury) for the following reasons:
Treasury removed the 10-year limitation to collect delinquent debts
owed the United States by reducing eligible Federal payments, and more
States are participating in reciprocal agreements with Treasury to
offset State payments, including tax refunds to reduce or extinguish a
federally owed debt. These changes will allow us to collect additional
Federal debt.
DATES: These rules are effective November 21, 2011.
FOR FURTHER INFORMATION CONTACT: Jennifer C. Pendleton, Office of
Payment and Recovery Policy, Social Security Administration, 6401
Security Boulevard, Baltimore, MD 21235-6401, (410) 965-5652. For
information on amendments to 20 CFR Part 408, please contact: Benjamin
Franco, Office of International Programs, Social Security
Administration, 6401 Security Boulevard, Baltimore, MD 21235-6401,
(410) 965-7342. For information on eligibility or filing for benefits,
call our national toll-free number, 1-800-772-1213 or TTY 1-800-325-
0778, or visit our Internet site, Social Security Online, at http://www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION:
Background
We are making final the rule for recovery of delinquent debts that
we proposed in a Notice of Proposed Rule Making (NPRM) published in the
Federal Register on March 2, 2011 (76 FR 11402). The preamble to the
NPRM discussed the changes from the current rules and our reasons for
proposing those changes. To the extent that we are adopting the
proposed rule as published, we are not repeating that information here.
Interested readers may refer to the preamble to the NPRM.\1\
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\1\ The NPRM is available at http://www.regulations.gov/#!documentDetail;D=SSA-2010-0010-0001.
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Changes to Our Regulations
We are changing our regulations to conform to Treasury's
regulations. In addition to collecting non-tax debts beyond the
original 10-year statute of limitations, we will collect delinquent
overpayments under titles II, VIII, and XVI by offset of various State
payments, including State tax refunds. Debt Collection Improvement Act
(DCIA) of 1996, Public Law 104-134, 110 Stat. 1321-358 et seq. (April
26, 1996); 31 U.S.C. 3716; 31 CFR 285.6.
Therefore, we are changing Title 20 Sec. Sec. 404.520, 404.521,
408.940, 408.941, 416.580, 416.581, and 422.310. Under these sections,
we notify the overpaid person and refer overpayments to Treasury for
tax refund and administrative offset.
Public Comments on the NPRM
In the NPRM, we provided the public a 60-day comment period, which
ended on May 2, 2011. We received two public comments from individuals.
Since the comments were long, we have summarized and paraphrased them.
We are responding to the significant issues raised by the commenters
that were within the scope of this rule.
Comment: One commenter wanted to make sure that our regulations are
written with understandable language.
Response: We are committed to writing our documents clearly and
welcome feedback if the public does not believe that our documents are
clear.
Comment: Another commenter agreed with our proposed rule and
suggested that individuals be given ample notice before monies are
reclaimed and that individuals be thoroughly informed before entering
into a contract that might fall under this rule.
Response: Before referring a person for offset under these
sections, we will give him or her at least 60 days prior notice in
accordance with Sec. Sec. 404.521, 408.941, 416.581, and 422.310.
[[Page 65108]]
Regulatory Procedures
Executive Order 12866 as Supplemented by Executive Order 13563
We consulted with the Office of Management and Budget (OMB) and
determined that this final rule meets the criteria for a significant
regulatory action under Executive Order 12866 as supplemented by
Executive Order 13563. Thus, OMB reviewed the final rule.
Regulatory Flexibility Act
We certify that this final rule will not have a significant
economic impact on a substantial number of small entities because it
applies to individuals only. Thus, a regulatory flexibility analysis is
not required under the Regulatory Flexibility Act, as amended.
Paperwork Reduction Act
This rule does not create any new or affect any existing
collections and does not require OMB approval under the Paperwork
Reduction Act.
List of Subjects
20 CFR Part 404
Administrative practice and procedure, Blind, Disability benefits,
Income taxes, Old-Age, Survivors, and Disability Insurance, Reporting
and recordkeeping requirements, Social Security.
20 CFR Part 408
Administrative practice and procedure; Aged; Reporting and
recordkeeping requirements; Social Security; Supplemental Security
Income (SSI); Veterans.
20 CFR Part 416
Administrative practice and procedure, Reporting and recordkeeping
requirements, Supplemental Security Income (SSI).
20 CFR Part 422
Administrative practice and procedure, Organization and functions
(Government agencies), Reporting and recordkeeping requirements, Social
Security.
Michael J. Astrue,
Commissioner of Social Security.
For the reasons set out in the preamble, we are amending 20 CFR
chapter III, parts 404, 408, 416, and 422 as set forth below:
PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE
(1950- )
Subpart F--[Amended]
0
1. The authority citation for subpart F of part 404 is revised to read
as follows:
Authority: Secs. 204, 205(a), 702(a)(5), and 1147 of the Social
Security Act (42 U.S.C. 404, 405(a), 902(a)(5), and 1320b-17); 31
U.S.C. 3716; 31 U.S.C. 3720A.
0
2. Amend Sec. 404.520(b) in the second sentence by removing the word
``individuals'' and adding in its place the word ``persons'' and by
revising the third sentence to read as follows:
Sec. 404.520 Referral of overpayments to the Department of the
Treasury for tax refund offset--General.
* * * * *
(b) * * * We will refer overpayments to the Department of the
Treasury for offset against Federal tax refunds regardless of the
length of time the debts have been outstanding.
0
3. Amend Sec. 404.521 by revising the section heading, introductory
text, and paragraphs (a) and (b), and in paragraph (e) by removing the
word ``individual'' in two places and adding in its place ``person''.
Sec. 404.521 Notice to overpaid persons.
Before we request the collection of an overpayment by reduction of
Federal and State income tax refunds, we will send a written notice of
intent to the overpaid person. In our notice of intent to collect an
overpayment through tax refund offset, we will state:
(a) The amount of the overpayment; and
(b) That we will collect the overpayment by requesting that the
Department of the Treasury reduce any amounts payable to the overpaid
person as refunds of Federal and State income taxes by an amount equal
to the amount of the overpayment unless, within 60 calendar days from
the date of our notice, the overpaid person:
(1) Repays the overpayment in full; or
(2) Provides evidence to us at the address given in our notice that
the overpayment is not past due or legally enforceable; or
(3) Asks us to waive collection of the overpayment under section
204(b) of the Act.
* * * * *
PART 408--SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS
Subpart I--[Amended]
0
4. The authority citation for subpart I of part 408 is revised to read
as follows:
Authority: Secs. 702(a)(5), 808, and 1147 of the Social
Security Act (42 U.S.C. 902(a)(5), 1008, and 1320b-17); 31 U.S.C.
3716; 31 U.S.C. 3720A.
0
5. In Sec. 408.940(b) revise the third sentence to read as follows:
Sec. 408.940 When will we refer an SVB overpayment to the Department
of the Treasury for tax refund offset?
* * * * *
(b) * * * We refer overpayments to the Department of the Treasury
for offset against Federal tax refunds regardless of the amount of time
the debts have been outstanding.
0
6. In Sec. 408.941 revise the introductory text, and paragraphs (a)
and (b) to read as follows:
Sec. 408.941 Will we notify you before we refer an SVB overpayment
for tax refund offset?
Before we request that an overpayment be collected by reduction of
Federal and State income tax refunds, we will send a written notice of
our action to the overpaid person. In our notice of intent to collect
an overpayment through tax refund offset, we will state:
(a) The amount of the overpayment; and
(b) That we will collect the overpayment by requesting that the
Department of the Treasury reduce any amounts payable to the overpaid
person as refunds of Federal and State income taxes by an amount equal
to the amount of the overpayment unless, within 60 calendar days from
the date of our notice, the overpaid person:
(1) Repays the overpayment in full; or
(2) Provides evidence to us at the address given in our notice that
the overpayment is not past due or legally enforceable; or
(3) Asks us to waive collection of the overpayment under section
204(b) of the Act.
* * * * *
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart E--[Amended]
0
7. The authority citation for subpart E of part 416 is amended to read
as follows:
Authority: Secs. 702(a)(5), 1147, 1601, 1602, 1611(c) and (e),
and 1631(a)-(d) and (g) of the Social Security Act (42 U.S.C.
902(a)(5), 1320b-17, 1381, 1381a, 1382(c) and (e), and 1383(a)-(d)
and (g)); 31 U.S.C. 3716; 31 U.S.C. 3720A.
0
8. Amend Sec. 416.580(b) by removing the word ``individuals'' in the
second
[[Page 65109]]
sentence and adding in its place ``persons'' and by revising the last
sentence to read as follows:
Sec. 416.580 Referral of overpayments to the Department of the
Treasury for tax refund offset--General.
* * * * *
(b) * * * We refer overpayments to the Department of the Treasury
for offset against Federal tax refunds regardless of the amount of time
the debts have been outstanding.
0
9. Amend Sec. 416.581 by revising the section heading, the
introductory text, and paragraphs (a) and (b), and in paragraph (e), by
removing the word ``individual'' in two places and adding in its place
``person''.
Sec. 416.581 Notice to overpaid person.
We will make a request for collection by reduction of Federal and
State income tax refunds only after we determine that a person owes an
overpayment that is past due and provide the overpaid person with
written notice. Our notice of intent to collect an overpayment through
tax refund offset will state:
(a) The amount of the overpayment; and
(b) That we will collect the overpayment by requesting that the
Department of the Treasury reduce any amounts payable to the overpaid
person as refunds of Federal and State income taxes by an amount equal
to the amount of the overpayment unless, within 60 calendar days from
the date of our notice, the overpaid person:
(1) Repays the overpayment in full; or
(2) Provides evidence to us at the address given in our notice that
the overpayment is not past due or legally enforceable; or
(3) Asks us to waive collection of the overpayment under section
204(b) of the Act.
* * * * *
PART 422--ORGANIZATION AND PROCEDURES
Subpart D--[Amended]
0
10. The authority citation for subpart D of part 422 continues to read
as follows:
Authority: Secs. 204(f), 205(a), 702(a)(5), and 1631(b) of the
Social Security Act (42 U.S.C. 404(f), 405(a), 902(a)(5), and
1383(b)); 5 U.S.C. 5514; 31 U.S.C. 3711(e); 31 U.S.C. 3716.
0
11. In Sec. 422.310 revise paragraphs (a)(1) and (b) to read as
follows:
Sec. 422.310 Collection of overdue debts by administrative offset.
(a) Referral to the Department of the Treasury for offset. (1) We
recover overdue debts by offsetting Federal and State payments due the
debtor through the Treasury Offset Program (TOP). TOP is a Government-
wide delinquent debt matching and payment offset process operated by
the Department of the Treasury, whereby debts owed to the Federal
Government are collected by offsetting them against Federal and State
payments owed the debtor. Federal payments owed the debtor include
current ``disposable pay,'' defined in 5 CFR 550.1103, owed by the
Federal Government to a debtor who is an employee of the Federal
Government. Deducting from such disposable pay to collect an overdue
debt owed by the employee is called ``Federal salary offset'' in this
subpart.
* * * * *
(b) Debts we refer. We refer for administrative offset all
qualifying debts that meet or exceed the threshold amounts used by the
Department of the Treasury for collection from State and Federal
payments, including Federal salaries.
* * * * *
[FR Doc. 2011-27221 Filed 10-19-11; 8:45 am]
BILLING CODE 4191-02-P