20 CFR Part 422 — Organization and Procedures

PART 422—ORGANIZATION AND PROCEDURES Source: 32 FR 13653, Sept. 29, 1967, unless otherwise noted. Subpart A—Organization and Functions of the Social Security Administration Authority: Secs. 205, 218, 221, and 701-704 of the Social Security Act (42 U.S.C. 405, 418, 421, and 901-904). § 422.1 Organization and functions. (a) General. Federal Register Federal Register (b) Information included in description. [34 FR 435, Jan. 11, 1969, as amended at 62 FR 38456, July 18, 1997] § 422.5 District offices and branch offices. There are over 700 social security district offices and branch offices located in the principal cities and other urban areas or towns of the United States. In addition, there are over 3,300 contact stations, located in population and trading centers, which are visited on a regularly, recurring, preannounced basis. A schedule of these visits can be obtained from the nearest district office or branch office. The address of the nearest district office or branch office can be obtained from the local telephone directory or from the post office. Each district office and branch office has a list of all district offices and branch offices throughout the country and their addresses. The principal officer in each district office is the manager. The principal officer in each branch office is the officer-in-charge. Each district office and branch office also has a list of field offices of the Bureau of Hearings and Appeals and their addresses. The administrative hearing examiner is the principal officer in each field office. For procedures relating to claims see § 422.130, subpart J of part 404 of this chapter, and § 404.1520 of this chapter (the latter relating to disability determinations). For procedures on request for hearing by an Administrative Law Judge and review by the Appeals Council see subpart C of this part 422. Subpart B—General Procedures Authority: 42 U.S.C. 405, 432, 902(a)(5), 1320b-1, 1320b-13, and 1320e-3, and sec. 7213(a)(1)(A) of Pub. L. 108-458. § 422.101 Material included in this subpart. This subpart describes the procedures relating to applications for and assignment of social security numbers, maintenance of earnings records of individuals by the Social Security Administration, requests for statements of earnings or for revision of earnings records, and general claims procedures, including filing of applications, submission of evidence, determinations, and reconsideration of initial determinations. § 422.103 Social security numbers. (a) General. (b) Applying for a number Application. (2) Birth registration document. (3) Immigration form. (c) How numbers are assigned Application. (2) Request on birth registration document. (3) Request on immigration document. (d) Social security number cards. (e) Replacement of social security number card When we may issue you a replacement card. (2) Limits on the number of replacement cards. i.e. (3) Restrictive legend change defined. [55 FR 46664, Nov. 6, 1990, as amended at 63 FR 56554, Oct. 22, 1998; 69 FR 55076, Sept. 13, 2004; 70 FR 74651, Dec. 16, 2005; 71 FR 43056, July 31, 2006; 80 FR 47833, Aug. 10, 2015] § 422.104 Who can be assigned a social security number. (a) Persons eligible for SSN assignment. (1) A United States citizen; or (2) An alien lawfully admitted to the United States for permanent residence or under other authority of law permitting you to work in the United States (§ 422.105 describes how we determine if a nonimmigrant alien is permitted to work in the United States); or (3) An alien who cannot provide evidence of alien status showing lawful admission to the U.S., or an alien with evidence of lawful admission but without authority to work in the U.S., if the evidence described in § 422.107(e) does not exist, but only for a valid nonwork reason. We consider you to have a valid nonwork reason if: (i) You need a social security number to satisfy a Federal statute or regulation that requires you to have a social security number in order to receive a Federally-funded benefit to which you have otherwise established entitlement and you reside either in or outside the U.S.; or (ii) You need a social security number to satisfy a State or local law that requires you to have a social security number in order to receive public assistance benefits to which you have otherwise established entitlement, and you are legally in the United States. (b) Annotation for a nonwork purpose. [68 FR 55308, Sept. 25, 2003] § 422.105 Presumption of authority of nonimmigrant alien to engage in employment. (a) General rule. See See (b) Exception to presumption for foreign academic students in immigration classification F-1. and (1) You have authorization from your school to engage in employment, and (2) You are engaging in, or have secured, employment. [69 FR 55075, Sept. 13, 2004] § 422.106 Filing applications with other government agencies. (a) Agreements. (b) States. [55 FR 46665, Nov. 6, 1990, as amended at 63 FR 56555, Oct. 22, 1998] § 422.107 Evidence requirements. (a) General. (b) Evidence of age. See (c) Evidence of identity. (i) Your age, date of birth, or parents' names; or (ii) Your photograph or physical description. (2) A birth record is not sufficient evidence to establish identity for these purposes. (d) Evidence of U.S. citizenship. (1) Certificate of naturalization; (2) Certificate of citizenship; (3) U.S. passport; (4) U.S. citizen identification card issued by the Department of Homeland Security; (5) Consular report of birth (State Department form FS-240 or FS-545); or (6) Other verification from the Department of Homeland Security, U.S. Department of State, or Federal or State court records confirming citizenship. (e) Evidence of alien status General evidence rules. (2) Additional evidence rules for F-1 students Evidence from your designated school official. and (A) The nature of the employment you are or will be engaged in, and (B) The identification of the employer for whom you are or will be working. (ii) Evidence of your employment. (f) Failure to submit evidence. (g) Inability to verify eligibility factors. [55 FR 46665, Nov. 6, 1990, as amended at 60 FR 32446, June 22, 1995; 62 FR 38456, July 18, 1997; 63 FR 56555, Oct. 22, 1998; 68 FR 55308, Sept. 25, 2003; 69 FR 55076, Sept. 13, 2004; 70 FR 74651, Dec. 16, 2005; 80 FR 47834, Aug. 10, 2015] § 422.108 Criminal penalties. A person may be subject to criminal penalties for furnishing false information in connection with earnings records or for wrongful use or misrepresentation in connection with social security numbers, pursuant to section 208 of the Social Security Act and sections of title 18 U.S.C. (42 U.S.C. 408; 18 U.S.C. 1001 and 1546). [39 FR 10242, Mar. 19, 1974] § 422.110 Individual's request for change in record. (a) Application. (b) Assisting in enumeration. i.e. [71 FR 43056, July 31, 2006, as amended at 80 FR 47834, Aug. 10, 2015] § 422.112 Employer identification numbers. (a) General. (b) State and local governments. [60 FR 42433, Aug. 16, 1995, as amended at 64 FR 33016, June 21, 1999] § 422.114 Annual wage reporting process. (a) General. (b) Magnetic media reporting requirements. (c) Processing late and incorrect magnetic media wage transmittals. (d) Paper form reporting requirements. (e) Processing late and incorrect paper form reports. (f) Reconciliation of wage reporting errors. [60 FR 42433, Aug. 16, 1995] § 422.120 Earnings reported without a social security number or with an incorrect employee name or social security number. (a) Correcting an earnings report. (b) Returning incorrect reports. [60 FR 42434, Aug. 16, 1995] § 422.122 Information on deferred vested pension benefits. (a) Claimants for benefits. (b) Requesting deferred vested pension benefit information from SSA files. [60 FR 42434, Aug. 16, 1995] § 422.125 Statements of earnings; resolving earnings discrepancies. (a) Obtaining a statement of earnings and estimated benefits. (b) Statement of earnings and estimated benefits. (c) Detailed earnings statements. (d) Request for revision of earnings records. (e) Notice to individual of determination. (f) Notice to individual of adverse adjustment of his account. [32 FR 13653, Sept. 29, 1967, as amended at 35 FR 7891, May 22, 1970; 35 FR 8426, May 29, 1970; 39 FR 26721, July 23, 1974; 41 FR 50998, Nov. 19, 1976; 50 FR 28568, July 15, 1985; 57 FR 54919, Nov. 23, 1992; 61 FR 18078, Apr. 24, 1996; 65 FR 16816, Mar. 30, 2000] § 422.130 Claim procedure. (a) General. (b) Submission of evidence. see (c) Determinations and notice to individuals. [32 FR 13653, Sept. 29, 1967, as amended at 44 FR 34942, June 18, 1979; 65 FR 16816, Mar. 30, 2000; 71 FR 16461, Mar. 31, 2006; 73 FR 76945, Dec. 18, 2008; 76 FR 24812, May 3, 2011] § 422.135 Reports by beneficiaries. (a) A recipient of monthly benefits and a person for whom a period of disability has been established are obligated to report to the Social Security Administration the occurrence of certain events which may suspend or terminate benefits or which may cause a cessation of a period of disability. (See §§ 404.415 et seq. (b) A person who files an application for benefits receives oral and written instructions about events which may cause a suspension or termination, and also appropriate forms and instruction cards for reporting such events. Pursuant to section 203(h)(1)(A) of the Act, under certain conditions a beneficiary must, within 3 months and 15 days after the close of a taxable year, submit to the Social Security Administration and annual report of his earnings and of any substantial services in self-employment performed during such taxable year. The purpose of the annual report is to furnish the Social Security Administration with information for making final adjustments in the payment of benefits for that year. An individual may also be requested to submit other reports to the Social Security Administration from time to time. [32 FR 13653, Sept. 29, 1967, as amended at 65 FR 16816, Mar. 30, 2000] § 422.140 Reconsideration of initial determination. If you are dissatisfied with an initial determination with respect to entitlement to monthly benefits, a lump-sum death payment, a period of disability, a revision of an earnings record, with respect to any other right under title II of the Social Security Act, or with respect to entitlement to hospital insurance benefits or supplementary medical insurance benefits, you may request that we reconsider the initial determination. The information in § 404.1503 of this chapter as to the respective roles of State agencies and the Social Security Administration in making disability determinations is also generally applicable to the reconsideration of initial determinations involving disability. However, in cases in which a disability hearing as described in §§ 404.914 through 404.918 and §§ 416.1414 through 416.1418 of this chapter is available, the reconsidered determination may be issued by a disability hearing officer or the Associate Commissioner for Disability Programs or his or her delegate. After the initial determination has been reconsidered, we will mail you written notice and inform you of your right to a hearing before an administrative law judge ( see [76 FR 24812, May 3, 2011] § 422.150 Guidelines for establishing and maintaining an information exchange with payroll data providers. (a) Guidelines for establishing an information exchange with payroll data providers. (1) Identify the payroll data providers (as defined in §§ 404.702 and 416.702 of this chapter) that may be interested in participating in an information exchange with us. (2) Review the payroll data providers and consider factors such as: whether a payroll data provider is able and willing to engage in an information exchange; what data the payroll data provider could provide; whether the data from the payroll data provider is sufficiently accurate, complete, and up to date; and any conditions and limitations associated with our receipt of the data. (3) Consistent with applicable law and regulations, establish an information exchange with the selected payroll data provider. The arrangement between us and the selected payroll data provider will describe: (i) The records that will be matched; (ii) The procedures for the match; (iii) Any requirements established related to accuracy, completeness, and up-to-date records; (iv) The procedures for ensuring the administrative, technical, and physical security of the records matched; and (v) Such other provisions as are necessary. (4) Prior to receiving payroll data provider information, publish a notice in the Federal Register (i) Relevant and necessary to: (A) Accurately determine initial and ongoing entitlement to, and the amount of, disability benefits under title II of the Social Security Act; (B) Accurately determine eligibility for, and the amount of, benefits under the Supplemental Security Income program under title XVI of the Social Security Act; and (C) Prevent improper payments of such benefits; and (ii) Sufficiently accurate, up to date, and complete. (b) Guidelines for maintaining an information exchange with payroll data providers. (1) Periodically assess whether the data we receive under the information exchange continues to be accurate, complete, and up to date; and (2) Monitor compliance with the requirements of the information exchange described in paragraph (a)(3) of this section. [89 FR 107261, Dec. 31, 2024] Subpart C—Hearings, Appeals Council Review, and Judicial Review Procedures Authority: Secs. 205, 221, and 702(a)(5) of the Social Security Act (42 U.S.C. 405, 421, and 902(a)(5)); 30 U.S.C. 923(b). § 422.201 Material included in this subpart. This subpart describes in general the procedures relating to hearings, review by the Appeals Council of the hearing decision or dismissal, and court review in cases decided under the procedures in parts 404, 408, 410, and 416 of this chapter. It also describes the procedures for requesting a hearing or Appeals Council review, and for instituting a civil action for court review of cases decided under these parts. For detailed provisions relating to hearings, review by the Appeals Council, and court review, see the following references as appropriate to the matter involved: (a) Title II of the Act, §§ 404.929 through 404.983 of this chapter; (b) Title VIII of the Act, §§ 408.1040 through 408.1060 of this chapter; (c) Title XVI of the Act, §§ 416.1429 through 416.1483 of this chapter; (d) Part B of title IV of the Federal Mine Safety and Health Act of 1977 as amended, §§ 410.630 through 410.670. [41 FR 53791, Dec. 9, 1976, as amended at 44 FR 34942, June 18, 1979; 54 FR 4268, Jan. 30, 1989; 71 FR 16462, Mar. 31, 2006; 76 FR 24812, May 3, 2011; 85 FR 73161, Nov. 16, 2020] § 422.203 Hearings. (a) Right to request a hearing. (2) After (i) a reconsidered or revised determination that an institution, facility, agency, or clinic does not qualify as a provider of services, or (ii) a determination terminating an agreement with a provider of services, such institution, facility, agency, or clinic may, pursuant to section 1866 of the Act, file a written request for a hearing on the determination. (3) After (i) a reconsidered or revised determination that an independent laboratory, supplier of portable X-ray services, or end-stage renal disease treatment facility or other person does not meet the conditions for coverage of its services or (ii) a determination that it no longer meets such conditions has been made, such laboratory, supplier, treatment facility may, under 42 CFR 498.40 of this chapter, file a written request for a hearing on the determination. (For hearing rights of independent laboratories, suppliers of portable X-ray services, and end-stage renal disease treatment facilities and other person see 42 CFR 498.5.) (b) Request for a hearing. (2) Unless an extension of time has been granted for good cause shown, a request for a hearing must be filed within 60 days after the receipt of the notice of the reconsidered or revised determination, or after an initial determination described in 42 CFR 498.3(b) and (c) (see §§ 404.933, 410.631, and 416.1433 of this chapter and 42 CFR 405.722, 498.40, and 417.260.) (c) Hearing decision or other action. [41 FR 53791, Dec. 9, 1976, as amended at 44 FR 34942, June 18, 1979; 51 FR 308, Jan. 3, 1986; 54 FR 4268, Jan. 30, 1989; 73 FR 76945, Dec. 18, 2008; 85 FR 73161, Nov. 16, 2020] § 422.205 Proceedings before the Appeals Council. (a) Administrative Appeals Judge hearing decisions. (b) Appeals Council review. (c) Review of a hearing decision, dismissal, or denial. (d) Appeals Council review panel. (e) Appeals Council meetings. (f) Temporary assignments of ALJs. [85 FR 73161, Nov. 16, 2020] § 422.210 Judicial review. (a) General. (b) Court in which to institute civil action. (c) Time for instituting civil action. (d) Proper defendant. (e) Appeals Council review panel after Federal court remand. [41 FR 53792, Dec. 9, 1976, as amended at 44 FR 34942, June 18, 1979; 49 FR 46370, Nov. 26, 1984; 49 FR 48036, Dec. 10, 1984; 54 FR 4268, Jan. 30, 1989; 62 FR 38456, July 18, 1997; 85 FR 73162, Nov. 16, 2020] Subpart D—Claims Collection 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. Source: 62 FR 64278, Dec. 5, 1997, unless otherwise noted. § 422.301 Scope of this subpart. (a) Except as provided in paragraphs (b) and (c) of this section, this subpart describes the procedures relating to collection of: (1) Overdue administrative debts, and (2) Overdue program overpayments described in §§ 404.527 and 416.590 of this chapter. (b) This subpart does not apply to administrative debts owed by employees of the Social Security Administration, including, but not limited to, overpayment of pay and allowances. (c) The following exceptions apply only to Federal salary offset as described in § 422.310(a)(1). (1) We will not use this subpart to collect a debt while the debtor's disability benefits are stopped during the reentitlement period, under § 404.1592a(a)(2) of this chapter, because the debtor is engaging in substantial gainful activity. (2) We will not use this subpart to collect a debt while the debtor's Medicare entitlement is continued because the debtor is deemed to be entitled to disability benefits under section 226(b) of the Social Security Act (42 U.S.C. 426(b)). (3) We will not use this subpart to collect a debt if the debtor has decided to participate in the Ticket to Work and Self-Sufficiency Program and the debtor's ticket is in use as described in §§ 411.170 through 411.225 of this chapter. [71 FR 38070, July 5, 2006] § 422.303 Interest, late payment penalties, and administrative costs of collection. We may charge the debtor with interest, late payment penalties, and our costs of collection on delinquent debts covered by this subpart when authorized by our regulations issued in accordance with the Federal Claims Collection Standards (31 CFR 901.9). [71 FR 38070, July 5, 2006] § 422.305 Report of overdue program overpayment debts to consumer reporting agencies. (a) Debts we will report. (b) Notice to debtor. (1) We have determined that payment of the debt is overdue; (2) We will refer the debt to a consumer reporting agency at the expiration of not less than 60 calendar days after the date of the notice unless, within that 60-day period, the debtor pays the full amount of the debt or takes either of the actions described in paragraphs (b)(6) or (b)(7) of this section; (3) The specific information we will provide to the consumer reporting agency, including information that identifies the debtor (e.g., name, address, and social security number) and the amount, status, and history of the debt; (4) The debtor has the right to a complete explanation of the debt; (5) The debtor may dispute the accuracy of the information to be provided to the consumer reporting agency; (6) The debtor may request a review of the debt by giving us evidence showing that he or she does not owe all or part of the amount of the debt or that we do not have the right to collect it; and (7) The debtor may request an installment payment plan. (c) Disputing the information that we would send to consumer reporting agencies. [62 FR 64278, Dec. 5, 1997, as amended at 66 FR 67081, Dec. 28, 2001] § 422.306 Report of overdue administrative debts to credit reporting agencies. (a) Debts we will report. (b) Notice to debtor. (1) We have determined that payment of the debt is overdue; (2) We will refer the debt to a credit reporting agency at the expiration of not less than 60 calendar days after the date of the notice unless, within that 60-day period, the debtor pays the full amount of the debt or takes either of the actions described in paragraphs (b)(6) or (b)(7) of this section; (3) The specific information we will provide to the credit reporting agency, including information that identifies the debtor (e.g., name, address, social security number, and employer identification number) and the amount, status, and history of the debt; (4) The debtor has the right to a complete explanation of the debt; (5) The debtor may dispute the accuracy of the information to be provided to the credit reporting agency; (6) The debtor may request a review of the debt by giving us evidence showing that he or she does not owe all or part of the amount of the debt or that we do not have the right to collect it; and (7) The debtor may request an installment payment plan. [62 FR 64278, Dec. 5, 1997, as amended at 71 FR 38070, July 5, 2006] § 422.310 Collection of overdue debts by administrative offset. (a) Referral to the Department of the Treasury for offset. (2) Except as provided in paragraphs (b) and (c) of § 422.301, we will use Federal salary offset to collect overdue debts from Federal employees, including employees of the Social Security Administration. A Federal employee's involuntary payment of all or part of a debt collected by Federal salary offset does not amount to a waiver of any rights which the employee may have under any statute or contract, unless a statute or contract provides for waiver of such rights. (b) Debts we refer. (c) Notice to debtor. (1) The nature and amount of the debt. (2) We have determined that payment of the debt is overdue. (3) We will refer the debt for administrative offset (except as provided in paragraph (c)(9) of this section) at the expiration of not less than 60 calendar days after the date of the notice unless, within that 60-day period: (i) The debtor pays the full amount of the debt, or (ii) The debtor takes any of the actions described in paragraphs (c)(6) or (c)(7) of this section. (4) The frequency and amount of any Federal salary offset deduction (the payment schedule) expressed as a fixed dollar amount or percentage of disposable pay. (5) The debtor may inspect or copy our records relating to the debt. If the debtor or his or her representative cannot personally inspect the records, the debtor may request and receive a copy of such records. (6) The debtor may request a review of the debt by giving us evidence showing that the debtor does not owe all or part of the amount of the debt or that we do not have the right to collect it. The debtor may also request review of any payment schedule for Federal salary offset stated in the notice. If the debtor is an employee of the Federal Government and Federal salary offset is proposed, an official designated in accordance with 5 U.S.C. 5514(a)(2) will conduct the review. (7) The debtor may request to repay the debt voluntarily through an installment payment plan. (8) If the debtor knowingly furnishes any false or frivolous statements, representations, or evidence, the debtor may be subject to: (i) Civil or criminal penalties under applicable statutes; (ii) Appropriate disciplinary procedures under applicable statutes or regulations, when the debtor is a Federal employee. (9) We will refer the debt for Federal salary offset at the expiration of not less than 30 calendar days after the date of the notice unless, within that 30 day period the debtor takes any actions described in paragraphs (c)(3)(i), (c)(6) or (c)(7) of this section. (d) Federal salary offset: amount, frequency and duration of deductions. (2) Federal salary offset will begin no sooner than the first payday following 30 calendar days after the date of the notice to the debtor described in paragraph (c) of this section. (3) Once begun, Federal salary offset will continue until we recover the full amount of the debt, the debt is otherwise resolved, or the debtor's Federal employment ceases, whichever occurs first. (4) After Federal salary offset begins, the debtor may request a reduction in the amount deducted from disposable pay each payday. When we determine that the amount deducted causes financial harm under the rules in § 422.415(b), (c), and (d) of this chapter, we will reduce that amount. (e) Refunds. [71 FR 38070, July 5, 2006, as amended at 76 FR 65109, Oct. 20, 2011] § 422.315 Review of our records related to the debt. (a) Notification by the debtor. (b) Our response. § 422.317 Review of the debt. (a) Notification and presentation of evidence by the debtor. (1) If the debtor notifies us and presents evidence within 60 calendar days from the date of our notice (except as provided for Federal salary offset in paragraph (a)(3) of this section), we will not take the action described in our notice unless and until review of all of the evidence is complete and we send the debtor the findings that all or part of the debt is overdue and legally enforceable. (2) If the debtor notifies us and presents evidence after that 60 calendar-day period expires (except as provided for Federal salary offset in paragraph (a)(4) of this section) and paragraph (b) of this section does not apply, the review will occur, but we may take the actions described in our notice without further delay. (3) If the debtor notifies us and presents evidence within 30 calendar days from the date of our notice, we will not refer the debt for Federal salary offset unless and until review of all of the evidence is complete and we send the debtor the findings that all or part of the debt is overdue and legally enforceable and (if appropriate) the findings on the payment schedule for Federal salary offset. (4) If the debtor notifies us and presents evidence after that 30 calendar-day period expires and paragraph (b) of this section does not apply, the review will occur, but we may refer the debt for Federal salary offset without further delay. (b) Good cause for failure to timely request review. (2) We will determine good cause under the rules in § 422.410(b)(1) and (2) of this chapter. (c) Review of the evidence. (d) Special rules regarding Federal salary offset. (2) In addition to the requirements in paragraphs (a) and (b) of this section, the Federal employee must submit the request for review in writing. The request must (i) Be signed by the employee, (ii) Explain with reasonable specificity the facts and evidence that support the employee's position, and (iii) Include the names of any witnesses. (3) In reviewing the payment schedule described in the notice to the Federal employee, the reviewing official must apply the rules in § 422.415(b), (c), and (d) of this chapter regarding financial hardship. (4) The reviewing official will review our records and any documents, written statements, or other evidence submitted by the debtor and issue written findings. (5) The reviewing official will complete the review within 60 calendar days from the date on which the request for review and the debtor's evidence are received. If the reviewing official does not complete the review within that 60-day period and the debt was referred to the Department of the Treasury for Federal salary offset, we will notify the Department of the Treasury to suspend Federal salary offset. Offset will not begin or resume before we send the debtor findings that all or part of the debt is overdue and legally enforceable or (if appropriate) findings on the payment schedule. (e) The findings. (2) If the findings state that an individual does not owe the debt, or the debt is not overdue, or we do not have the right to collect it, we will not send information about the debt to consumer or other credit reporting agencies or refer the debt to the Department of the Treasury for administrative offset. If we had referred the debt to the Department of the Treasury for administrative offset, we will cancel that action. If we had informed consumer or credit reporting agencies about the debt, we will inform them of the findings. (3) If the findings state that the payment schedule for Federal salary offset would cause financial hardship, we will notify the debtor and the Department of the Treasury of the new payment schedule. [71 FR 38071, July 5, 2006] Subpart E—Collection of Debts by Administrative Wage Garnishment Authority: Secs. 205(a), 702(a)(5) and 1631(d)(1) of the Social Security Act (42 U.S.C. 405(a), 902(a)(5) and 1383(d)(1)) and 31 U.S.C. 3720D. Source: 68 FR 74184, Dec. 23, 2003, unless otherwise noted. § 422.401 What is the scope of this subpart? This subpart describes the procedures relating to our use of administrative wage garnishment under 31 U.S.C. 3720D to recover past due debts that you owe. § 422.402 What special definitions apply to this subpart? (a) Administrative wage garnishment (b) Debt (c) Disposable pay (d) We, our, us (e) You § 422.403 When may we use administrative wage garnishment? (a) General. (b) Exceptions. (2) If you have been separated involuntarily from employment, we will not order your employer to withhold amounts from your disposable pay until you have been reemployed continuously for at least 12 months. You have the burden of informing us about an involuntary separation from employment. (3) We will not use this subpart to collect a debt while your disability benefits are stopped during the reentitlement period, under § 404.1592a(a)(2) of this chapter, because you are engaging in substantial gainful activity. (4) We will not use this subpart to collect a debt while your Medicare entitlement is continued because you are deemed to be entitled to disability benefits under section 226(b) of the Social Security Act (42 U.S.C. 426(b)). (5) We will not use this subpart to collect a debt if you have decided to participate in the Ticket to Work and Self-Sufficiency Program and your ticket is in use as described in §§ 411.170 through 411.225 of this chapter. (c) Overpayments under title II of the Social Security Act. (1) You are not receiving title II benefits. (2) We have completed our billing system sequence ( i.e., (3) We have not made an installment payment arrangement with you or, if we have made such an arrangement, you have failed to make any payment for two consecutive months. (4) You have not requested waiver pursuant to § 404.506 or § 404.522 of this chapter or, after a review conducted pursuant to those sections, we have determined that we will not waive collection of the overpayment. (5) You have not requested reconsideration of the initial overpayment determination pursuant to §§ 404.907 and 404.909 of this chapter or, after a review conducted pursuant to § 404.913 of this chapter, we have affirmed all or part of the initial overpayment determination. (6) We cannot recover your overpayment pursuant to § 404.502 of this chapter by adjustment of benefits payable to any individual other than you. For purposes of this paragraph, an overpayment will be deemed to be unrecoverable from any individual who was living in a separate household from yours at the time of the overpayment and who did not receive the overpayment. (d) Overpayments under title XVI of the Social Security Act. (1) You are not receiving benefits under title XVI of the Social Security Act. (2) We are not collecting your title XVI overpayment by reducing title II benefits payable to you. (3) We have completed our billing system sequence ( i.e., (4) We have not made an installment payment arrangement with you or, if we have made such an arrangement, you have failed to make any payment for two consecutive months. (5) You have not requested waiver pursuant to § 416.550 or § 416.582 of this chapter or, after a review conducted pursuant to those sections, we have determined that we will not waive collection of the overpayment. (6) You have not requested reconsideration of the initial overpayment determination pursuant to §§ 416.1407 and 416.1409 of this chapter or, after a review conducted pursuant to § 416.1413 of this chapter, we have affirmed all or part of the initial overpayment determination. (7) We cannot recover your overpayment pursuant to § 416.570 of this chapter by adjustment of benefits payable to any individual other than you. For purposes of this paragraph, if you are a member of an eligible couple that is legally separated and/or living apart, we will deem unrecoverable from the other person that part of your overpayment which he or she did not receive. § 422.405 What notice will we send you about administrative wage garnishment? (a) General. (b) Contents of the notice. (1) We have determined that payment of the debt is past due; (2) The nature and amount of the debt; (3) Information about the amount that your employer could withhold from your disposable pay each payday (the payment schedule); (4) No sooner than 60 calendar days after the date of the notice, we will order your employer to withhold the debt from your disposable pay unless, within that 60-day period, you pay the full amount of the debt or take either of the actions described in paragraphs (b)(6) or (7) of this section; (5) You may inspect and copy our records about the debt ( see (6) You may request a review of the debt ( see see (7) You may request to pay the debt by monthly installment payments to us. (c) Mailing address. (d) Electronic record of the notice. § 422.410 What actions will we take after we send you the notice? (a) General. (2) If paragraph (b) of this section does not apply and you do not pay the debt in full or do not take either of the actions described in § 422.405(b)(6) or (7) within 60 calendar days from the date of the notice described in § 422.405, we may order your employer to withhold and send us part of your disposable pay each payday until your debt is paid. (3) If you request review of the debt or the payment schedule after the end of the 60 calendar day period described in paragraph (a)(2) of this section and paragraph (b) of this section does not apply, we will conduct the review. However, we may send the administrative wage garnishment order to your employer without further delay. If we sent the administrative wage garnishment order to your employer and we do not make our decision on your request within 60 calendar days from the date that we received your request, we will tell your employer to stop withholding from your disposable pay. Withholding will not resume before we conduct the review and notify you of our decision. (4) We may send an administrative wage garnishment order to your employer without further delay if: (i) You request an installment payment plan after receiving the notice described in § 422.405, and (ii) We arrange such a plan with you, and (iii) You fail to make payments in accordance with that arrangement for two consecutive months. (b) Good cause for failing to request review on time. (1) Determining good cause. (i) Any circumstances that kept you from making the request on time; (ii) Whether our action misled you; (iii) Whether you had any physical, mental, educational, or linguistic limitations (including any lack of facility with the English language) which prevented you from making a request on time or from understanding the need to make a request on time. (2) Examples of good cause. (i) Your serious illness prevented you from contacting us yourself or through another person. (ii) There was a death or serious illness in your family. (iii) Fire or other accidental cause destroyed important records. (iv) You did not receive the notice described in § 422.405. (v) In good faith, you sent the request to another government agency within the 60-day period, and we received the request after the end of that period. (3) If we issued the administrative wage garnishment order. § 422.415 Will we reduce the amount that your employer must withhold from your pay when withholding that amount causes financial hardship? (a) General. (1) You may ask us at any time to reduce the amount due to financial hardship. (2) If you request review of the payment schedule stated in the notice described in § 422.405 within the 60-day period stated in the notice, we will not issue a garnishment order to your employer until we notify you of our decision. (b) Financial hardship. (c) Ordinary and necessary living expenses. (1) Fixed expenses such as food, clothing, housing, utilities, maintenance, insurance, tax payments; (2) Medical, hospitalization and similar expenses; (3) Expenses for the support of others for whom you are legally responsible; and (4) Other reasonable and necessary miscellaneous expenses which are part of your standard of living. (d) Fraud and willful concealment or failure to furnish information. (i) Your intentional false statement, or (ii) Your willful concealment of, or failure to furnish, material information. (2) “Willful concealment” means an intentional, knowing and purposeful delay in providing, or failure to reveal, material information. § 422.420 May you inspect and copy our records related to the debt? You may inspect and copy our records related to the debt. You must notify us of your intention to review our records. After you notify us, we will arrange with you the place and time the records will be available to you. At our discretion, we may send copies of the records to you. § 422.425 How will we conduct our review of the debt? (a) You must request review and present evidence. (b) Review of the evidence. (c) Our findings. § 422.430 When will we refund amounts of your pay withheld by administrative wage garnishment? If we find that you do not owe the debt or that we have no right to collect it, we will promptly refund to you any amount withheld from your disposable pay under this subpart that we received and cancel any administrative wage garnishment order that we issued. Refunds under this section will not bear interest unless Federal law or contract requires interest. § 422.435 What happens when we decide to send an administrative wage garnishment order to your employer? (a) The wage garnishment order. (1) Your name, address, and social security number, (2) The amount of the debt, (3) Information about the amount to be withheld, and (4) Information about where to send the withheld amount. (b) Electronic record of the garnishment order. (c) Employer certification. (d) Amounts to be withheld from your disposable pay. (1) The amount indicated on the order (up to 15% of your disposable pay); or (2) The amount by which your disposable pay exceeds thirty times the minimum wage as provided in 15 U.S.C. 1673(a)(2). (e) Multiple withholding orders. (1) Unless otherwise provided by Federal law or paragraph (e)(2) of this section, a garnishment order issued under this section has priority over other withholding orders served later in time. (2) Withholding orders for family support have priority over garnishment orders issued under this section. (3) If at the time we issue a garnishment order to your employer amounts are already being withheld from your pay under another withholding order, or if a withholding order for family support is served on your employer at any time, the amounts to be withheld under this section will be the lesser of: (i) The amount calculated under paragraph (d) of this section; or (ii) The amount calculated by subtracting the amount(s) withheld under the withholding order(s) with priority from 25% of your disposable pay. (4) If you owe more than one debt to us, we may issue multiple garnishment orders. If we issue more than one garnishment order, the total amount to be withheld from your disposable pay under such orders will not exceed the amount set forth in paragraph (d) or (e)(3) of this section, as appropriate. (f) You may request that your employer withhold more. § 422.440 What are your employer's responsibilities under an administrative wage garnishment order? (a) When withholding must begin. (b) Payment of amounts withheld. (c) Other assignments or allotments of pay. (d) Effect of withholding on employer pay and disbursement cycles. (e) When withholding ends. (f) Certain actions by an employer against you are prohibited. § 422.445 May we bring a civil action against your employer for failure to comply with our administrative wage garnishment order? (a) We may bring a civil action against your employer for any amount that the employer fails to withhold from your disposable pay in accordance with § 422.435(d), (e) and (f). Your employer may also be liable for attorney fees, costs of the lawsuit and (in the court's discretion) punitive damages. (b) We will not file a civil action against your employer before we terminate collection action against you, unless earlier filing is necessary to avoid expiration of any applicable statute of limitations period. For purposes of this section, “terminate collection action” means that we have terminated collection action in accordance with the Federal Claims Collection Standards (31 CFR 903.3) or other applicable standards. In any event, we will consider that collection action has been terminated if we have not received any payments to satisfy the debt for a period of one year. Subpart F—Applications and Related Forms Authority: 42 U.S.C. 1320b-10(a)(2)(A). § 422.501 Applications and other forms used in Social Security Administration programs. This subpart lists the applications and some of the related forms prescribed by the Social Security Administration for use by the public in applying for benefits under titles II and XVIII of the Social Security Act and the black lung benefits program (Part B, title IV of the Federal Coal Mine Health and Safety Act of 1969, as amended). [38 FR 11450, May 8, 1973] § 422.505 What types of applications and related forms are used to apply for retirement, survivors, and disability insurance benefits? (a) Applications. (b) Related forms. SSA-3—Marriage Certification. (For use in connection with Application for Wife's or Husband's Insurance Benefits, (Form SSA-2)) SSA-11—Request to be Selected as Payee. (For use when an individual proposing to be substituted for the current payee files an application to receive payment of benefits on behalf of disabled child, or a child under 18, or an incapable or incompetent beneficiary or for himself/herself if he/she has a payee.) SSA-21—Supplement to Claim of Person Outside of the United States. (To be completed by or on behalf of a person who is, was, or will be outside the United States.) SSA-25—Certificate of Election for Reduced Spouse's Benefits. (For use by a wife or husband age 62 to full retirement age who has an entitled child in his or her care and elects to receive reduced benefits for months during which he or she will not have a child in his or her care.) SSA-721—Statement of Death by Funeral Director. (This form may be used as evidence of death ( see SSA-760—Certificate of Support (Parent's, Husband's or Widower's). (For use in collecting evidence of support.) SSA-766—Statement of Self-Employment Income. (For use by a claimant to establish insured status based on self-employment income in the current year.) SSA-783—Statement Regarding Contributions. (This form may be used as evidence of total contributions for a child.) SSA-787—Physician's/Medical Officer's Statement of Patient's Capability to Manage Benefits. (This form may be used to request evidence of capability from various medical sources.) SSA-824—Report on Individual with Mental Impairment. (For use in obtaining medical evidence from medical sources when the claimant has been treated for a mental impairment.) SSA-827—Authorization for Source to Release Information to the Social Security Administration. (To be completed by a disability claimant to authorize release of medical or other information.) SSA-1002—Statement of Agricultural Employer (Years Prior to 1988). (For use by employer to provide evidence of annual wage payments for agricultural work.) SSA-1372—Student's Statement Regarding School Attendance. (For use in connection with request for payment of child's insurance benefits for a child who is age 18 through 19 and a full-time student. SSA-1724—Claim for Amount Due in the Case of a Deceased Beneficiary. (For use in requesting amounts payable under title II to a deceased beneficiary.) SSA-3368—Disability Report—Adult. (For use in recording information about the claimant's condition, source of medical evidence and other information needed to process the claim to a determination or decision.) SSA-3369—Disability Report—Work History. (For use in recording work history information.) SSA-3826-F4—Medical Report—General. (For use in helping disability claimants in obtaining medical records from their doctors or other medical sources.) SSA-3827—Medical Report—(Individual with Childhood Impairment). (For use in requesting information to determine if an individual's impairment meets the requirements for payment of childhood disability benefits.) SSA-4111—Certificate of Election for Reduced Widow(er)s Benefits. (For use by applicants for certain reduced widow's or widower's benefits.) SSA-7156—Farm Self-Employment Questionnaire. (For use in connection with claims for benefits based on farm income to determine whether the income is covered under the Social Security Act.) SSA-7160—Employment Relationship Questionnaire. (For use by an individual and the alleged employer to determine the individual's employment status.) SSA-7163—Questionnaire about Employment or Self-Employment Outside the United States. (To be completed by or on behalf of a beneficiary who is, was, or will be employed or self-employed outside the United States.) [69 FR 499, Jan. 6, 2004, as amended at 70 FR 14978, Mar. 24, 2005] § 422.510 Applications and related forms used in the health insurance for the aged program. (a) Application forms. SSA-18—Application for Hospital Insurance Entitlement. (For use by individuals who are not entitled to retirement benefits under title II of the Social Security Act or under the Railroad Retirement Act. This form may also be used for enrollment in the supplementary medical insurance benefits plan.) SSA-40—Application for Enrollment in the Supplementary Medical Insurance Program. (This form is mailed directly to beneficiaries at the beginning of their initial enrollment period.) SSA-40A—Application for Enrollment in Supplementary Medical Insurance. (For use by civil service employees who are not eligible for enrollment in the hospital insurance plan.) SSA-40B—Application for Medical Insurance. (For general use in requesting medical insurance protection.) SSA-40C—Application for Enrollment. (This form is mailed to beneficiaries as a followup on Form SSA-40 (Application for Enrollment in the Supplementary Medical Insurance Program).) SSA-40F—Application for Medical Insurance. (For use by beneficiaries residing outside the United States.) An individual who upon attainment of age 65 is entitled to a monthly benefit based on application OA-C1, SSA-2, OA-C7, OA-C10, SSA-10A, OA-C13, or SSA-14 is automatically entitled to hospital insurance protection. (For conditions of entitlement to hospital insurance benefits, see 42 CFR part 405, subpart A. For medical insurance protection, an applicant must request supplementary medical insurance coverage (see Forms SSA-40, SSA-40A, SSA-40B, SSA-40C, and SSA-40F under § 422.510(a)). (For conditions of entitlement to supplementary medical insurance benefits, see 42 CFR part 405, subpart B.) (b) Related forms. SSA-1453—Inpatient Hospital and Extended Care Admission and Billing. (To be completed by hospital for payment of hospital expenses for treatment of patient confined in hospital.) SSA-1483—Provider Billing for Medical and Other Health Services. (To be completed by hospital for payment of hospital expenses for treatment of patient who is not confined in the hospital.) SSA-1484—Explanation of Accommodation Furnished. (To be completed by the hospital to explain accommodation of a patient in other than a semiprivate (two- to four-bed) room.) SSA-1486—Inpatient Admission and Billing—Christian Science Sanatorium. (To be completed by a Christian Science sanatorium for payment for treatment of patients confined in the sanatorium.) SSA-1487—Home Health Agency Report and Billing. (For use by an organization providing home health services.) SSA-1490—Request for Medicare Payment. (For use by patient or physician to request payment for medical expenses.) SSA-1554—Provider Billing for Patient Services by Physicians. (For use by hospital for payment for services provided by hospital-based physicians.) SSA-1556—Prepayment Plan for Group Medical Practices Dealing Through a Carrier. (For use by organizations (which have been determined to be group practice prepayment plans for medicare purposes) for reimbursement for medical services provided to beneficiaries.) SSA-1660—Request for Information—Medicare Payment For Services to a Patient Now Deceased. (For use in requesting amounts payable under title XVIII to a deceased beneficiary.) SSA-1739—Request for Enrollment Card Information by Foreign Beneficiary. (Used to notify beneficiaries approaching age 65 who reside in foreign countries that they are eligible to enroll for SMI. They return this form if they wish additional information and an application, SSA-40F.) SSA-1966—Health Insurance Card. (This card is issued to a person entitled to benefits under the health insurance for the aged program and designates whether he is entitled to hospital insurance benefits or supplementary medical insurance benefits or both. SSA-1980—Carrier or Intermediary Request for SSA Assistance. SSA-2384—Third Party Premium Billing Request. (For use by a nonbeneficiary enrollee who must pay premiums by direct remittance and is having his premium notices sent to a third party to assure continuance of supplementary medical insurance.) [32 FR 18030, Dec. 16, 1967, as amended at 38 FR 11451, May 8, 1973; 44 FR 34943, June 18, 1979] § 422.512 Applications and related forms used in the black lung benefits program. (a) Application forms. SSA-46—Application for Benefits Under the Federal Coal Mine Health and Safety Act of 1969, as Amended (Coal Miner's Claim of Total Disability). SSA-47—Application for Benefits Under the Federal Coal Mine Health and Safety Act of 1969, as Amended (Widow's Claim). SSA-48—Application for Benefits Under the Federal Coal Mine Health and Safety Act of 1969, as Amended (Child's Claim). SSA-49—Application for Benefits Under the Federal Coal Mine Health and Safety Act of 1969, as Amended (Parent's, Brother's and Sister's Claim). (b) Related forms. SSA-50—Request To Be Selected as Payee. (For use when the individual proposing to be substituted for current payee files application to receive payment of black lung benefits on behalf of himself, a disabled child or child under age 18, a student beneficiary, or an incompetent beneficiary.) SSA-2179—Report by Person Entitled to Black Lung Benefits. (For use by person entitled to black lung benefits to report events which affect benefits.) SAA-2210—Statement of Coal Mine Employment by United Mine Workers of America. SSA-2325—Medical Report (Pneumoconiosis). [38 FR 11451, May 8, 1973] § 422.515 Forms used for withdrawal, reconsideration and other appeals, appointment of representative, and representative registration. The following is a list of forms prescribed by the Social Security Administration for use by the public to request a withdrawal of an application, a reconsideration of an initial determination, a hearing, a review of an administrative law judge's decision, or for use where a person is authorized to represent a claimant. SSA-521—Request for Withdrawal of Application. (For use by an individual to cancel his application.) SSA-561—Request for Reconsideration. (For use by an individual who disagrees with an initial determination concerning (a) entitlement to benefits or any other right under title II of the Social Security Act, or (b) entitlement to hospital insurance benefits or supplementary medical insurance benefits under title XVIII of the act, or (c) entitlement to black lung benefits under title IV of the Federal Coal Mine Health and Safety Act. See § 422.140 for a discussion of the reconsideration procedure.) SSA-1696—Claimant's Appointment of a Representative. (For use by claimants or representatives as a notice of their appointment of a representative in a claim, issue, or other matter that is pending a determination or a decision before us). SSA-1699—Representative Registration. (For use by individuals to register with us as representatives prior to appointment as a representative on a claim or designation as a point of contact for an entity). SSA-1763—Request for Termination of Supplementary Medical Insurance. (For use by an enrollee in requesting that his supplementary medical insurance coverage be terminated.) SSA-1965—Request for Hearing—Part B Medicare Claim. (For use by an individual enrollee or his assignee to obtain a hearing before a hearing officer designated by the carrier concerning benefits payable under part B of title XVIII.) HA-501—Request for Hearing. (For use by an individual or institution to obtain a hearing on a claim for title II benefits before an administrative law judge of the Social Security Administration.) Note: This form is also used to request a hearing regarding entitlement to hospital insurance benefits or supplementary medical insurance benefits under title XVIII of the act. (See § 422.203 for a discussion of the hearing procedure.) HA-501.1—Request for Hearing—Part A Health Insurance. (For use by an individual or institution to obtain a hearing before an administrative law judge of the Social Security Administration concerning the amount of hospital insurance benefits under title XVIII.) HA-512.1—Notice by Attorney of Appointment as Representative. (For use by an attorney authorized by a claimant to act for him in a claim or related matter.) HA-520—Request for Review of Hearing Examiner's Action. (For use by an individual or institution to obtain a review of a decision by an administrative law judge of the Social Security Administration.) [38 FR 11452, May 8, 1973, as amended at 89 FR 67556, Aug. 21, 2024] § 422.520 Forms related to maintenance of earnings records. The following forms are used by the Social Security Administration and by the public in connection with the maintenance of earnings records of wage-earners and self-employed persons: SS-4—Application for Employer Identification Number. SS-4A—Agricultural Employer's Application. (For use by employers of agricultural workers to request an employer identification number under the FICA.) SS-5—Application for a Social Security Number (or Replacement of Lost Card). SS-15—Certificate Waiving Exemption From Taxes Under the FICA. (For use by certain nonprofit organizations requesting coverage of its employees.) SS-15a—List of Concurring Employees. (To be signed by each employee who concurs in the filing of the Certificate Waiving Exemption From Taxes Under the FICA, Form SS-15.) SSI-21—Social Security and Your Household Employee. (For use by employers of household workers to request information from the Internal Revenue Service Center regarding filing employee tax returns.) OA-702—Social Security Number Card. Form 2031—Waiver Certificate To Elect Social Security Coverage for Use by Ministers, Certain Members of Religious Orders, and Christian Science Practitioners. Form 4029—Application for Exemption from Tax on Self-Employment Income and Waiver of Benefits. (To be completed by self-employed individuals who are members of certain recognized religious sects (or division thereof) and do not wish to pay FICA taxes or participate in the programs provided under titles II and XVIII.) Form 4361—Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners. Form 4415—Election To Exempt From Self-Employment Coverage Fees Received by Certain Public Officers and Employees of a State or Political Subdivision Thereof. OAAN-5028—Evidence of Application for Social Security Number Card. OAAN-7003—Request for Change in Social Security Records. (For use by an individual to change information given on original application for a social security number.) OAR-7004—Request for Statement of Earnings. (For use by worker to obtain a statement of earnings recorded in his earnings record.) OAR-7008—Request for Correction of Earnings Record. (For use by an individual who wishes to have his earnings record revised.) SSA-7011—Statement of Employer. (For use by an employer to provide evidence of wage payments in cases of a wage discrepancy in an individual's earnings record.) [38 FR 11452, May 8, 1973] § 422.525 Where applications and other forms are available. All applications and related forms prescribed for use in the programs administered by the Social Security Administration pursuant to the provisions of titles II and XVIII of the act, and part B of title IV of the Federal Coal Mine Health and Safety Act of 1969 are printed under the specifications of the Administration and distributed free of charge to the public, institutions, or organizations for the purposes described therein. All prescribed forms can be obtained upon request from any social security district office or branch office (see § 422.5). Forms appropriate for use in requesting payment for services provided under the health insurance for the aged and disabled programs can also be obtained from the intermediaries or carriers (organizations under contract with the Social Security Administration to make payment for such services) without charge. Form 2031 (Waiver Certificate to Elect Social Security Coverage for Use by Ministers, Certain Members of Religious Orders, and Christian Science Practitioners), Form 4029 (Application for Exemption From Tax on Self-Employment Income and Waiver of Benefits), Form 4361 (Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners), Form 4415 (Election to Exempt From Self-Employment Coverage Fees Received by Certain Public Officers and Employees of a State or a Political Subdivision Thereof), Form SS-4 (Application for Employer Identification Number), Form SS-4A (Agricultural Employer's Application for Identification Number), Form SS-5 (Application for a Social Security Number (or Replacement of Lost Card)), Form SS-15 (Certificate Waiving Exemption From Taxes Under the FICA), and Form SS-15a (List of Concurring Employees) can also be obtained without charge from offices of the Internal Revenue Service. For other offices where applications and certain other forms can be obtained, see subparts B and C of this part 422. [38 FR 11452, May 8, 1973] § 422.527 Private printing and modification of prescribed applications, forms, and other publications. Any person, institution, or organization wishing to reproduce, reprint, or distribute any application, form, or publication prescribed by the Administration must obtain prior approval if he or she intends to charge a fee. Requests for approval must be in writing and include the reason or need for the reproduction, reprinting, or distribution; the intended users of the application, form, or publication; the fee to be charged; any proposed modification; the proposed format; the type of machinery (e.g., printer, burster, mail handling), if any, for which the application, form, or publication is being designed; estimated printing quantity; estimated printing cost per thousand; estimated annual usage; and any other pertinent information required by the Administration. Forward all requests for prior approval to: Office of Publications Management, 6401 Security Boulevard, Baltimore, MD 21235-6401. [72 FR 73261, Dec. 27, 2007] Subpart G—Administrative Review Process Under the Coal Industry Retiree Health Benefit Act of 1992 Authority: 26 U.S.C. 9701-9708. Source: 58 FR 52916, Oct. 13, 1993, unless otherwise noted. § 422.601 Scope and purpose. The regulations in this subpart describe how the Social Security Administration (SSA) will conduct reviews of assignments it makes under provisions of the Coal Industry Retiree Health Benefit Act of 1992 (the Coal Act). Under the Coal Act, certain retired coal miners and their eligible family members (beneficiaries) are assigned to particular coal operators (or related persons). These operators are then responsible for paying the annual health and death benefit premiums for these beneficiaries as well as the annual premiums for certain unassigned coal miners and eligible members of their families. We will notify the assigned operators of these assignments and give each operator an opportunity to request detailed information about an assignment and to request review of an assignment. We also inform the United Mine Workers of America (UMWA) Combined Benefit Fund Trustees of each assignment made and the unassigned beneficiaries so they can assess appropriate annual premiums against the assigned operators. This subpart explains how assigned operators may request such additional information, how they may request review of an assignment, and how reviews will be conducted. § 422.602 Terms used in this subpart. Assignment Beneficiary Evidence of a prima facie case of error A related person to a signatory operator We us You [58 FR 52916, Oct. 13, 1993, as amended at 62 FR 38456, July 18, 1997] § 422.603 Overview of the review process. Our notice of assignment will inform you as the assigned operator (or related person) which beneficiaries have been assigned to you, the reason for the assignment, and the dates of employment on which the assignment was based. The notice will explain that, if you disagree with the assignment for any beneficiary listed in the notice of assignment, you may request from us detailed information as to the work history of the miner and the basis for the assignment. Such request must be filed with us within 30 days after you receive the notice of assignment, as explained in § 422.604. The notice will also explain that if you still disagree with the assignment after you have received the detailed information, you may submit evidence that shows there is a prima facie case of error in that assignment and request review. Such request must be filed with us within 30 days after you receive the detailed information, as explained in § 422.605. Alternatively, you may request review within 30 days after you receive the notice of assignment, even if you have not first requested the detailed information. In that case, you still may request the detailed information within that 30-day period. (See § 422.606(c) for further details.) § 422.604 Request for detailed information. (a) General. (1) Be in writing; (2) Be filed with us within 30 days of receipt of that notice of assignment. Unless you submit evidence showing a later receipt of the notice, we will assume the notice was received by you within 5 days of the date appearing on the notice. We will consider the request to be filed as of the date we receive it. However, if we receive the request after the 30-day period, the postmark date on the envelope may be used as the filing date. If there is no postmark or the postmark is illegible, the filing date will be deemed to be the fifth day prior to the day we received the request; and (3) Identify the individual miners about whom you are requesting the detailed information. (b) The detailed information we will provide. § 422.605 Request for review. We will review an assignment if you request review and show that there is a prima facie case of error regarding the assignment. This review is a review on the record and will not entail a face-to-face hearing. We will review an assignment if: (a) You are an assigned operator (or related person); (b) Your request is in writing and states your reasons for believing the assignment is erroneous; (c) Your request is filed with us no later than 30 days from the date you received the detailed information described in § 422.604, or no later than 30 days from the date you received the notice of assignment if you choose not to request detailed information. Unless you submit evidence showing a later receipt of the notice, we will assume you received the detailed information or the notice of assignment within 5 days of the date shown thereon. We will consider the request to be filed as of the date we receive it. However, if we receive the request after the 30-day period, the postmark date on the envelope may be used as the filing date. If there is no postmark or the postmark is illegible, the filing date will be deemed to be the fifth day prior to the day we received the request; and (d) Your request is accompanied by evidence establishing a prima facie case of error regarding the assignment. If your request for review includes a request for additional time to submit such evidence, we will give you an additional 90 days from the date of your request for review to submit such evidence to us. § 422.606 Processing the request for review. Upon receipt of your written request for review of an assignment and where relevant, the expiration of any additional times allowed under §§ 422.605(d) and 422.606(c), we will take the following action: (a) Request not timely filed. (b) Lack of evidence. (c) Request for review without requesting detailed information. (d) Reviewing the evidence. (e) Original decision correct. (f) Original decision erroneous. § 422.607 Limited reopening of assignments. On our own initiative, we may reopen and revise an assignment, whether or not it has been reviewed as described in this subpart, under the following conditions: (a) The assignment reflects an error on the face of our records or the assignment was based upon fraud; and (b) We sent to the assigned operator (or related person) notice of the assignment within 12 months of the time we decided to reopen that assignment. Subpart H—Use of SSA Telephone Lines Authority: Secs. 205(a) and 702(a)(5) of the Social Security Act (42 U.S.C. 405 and 902(a)(5)). Source: 63 FR 57058, Oct. 26, 1998, unless otherwise noted. § 422.701 Scope and purpose. The regulations in this subpart describe the limited circumstances under which SSA is authorized to listen-in to or record telephone conversations. The purpose of this subpart is to inform the public and SSA employees of those circumstances and the procedures that SSA will follow when conducting telephone service observation activities. § 422.705 When SSA employees may listen-in to or record telephone conversations. SSA employees may listen-in to or record telephone conversations on SSA telephone lines under the following conditions: (a) Law enforcement/national security. (b) Public safety. (c) Public service monitoring. (d) All-party consent. § 422.710 Procedures SSA will follow. SSA component(s) that plan to listen-in to or record telephone conversations under § 422.705(b) or (c) shall comply with the following procedures. (a) Prepare a written certification of need to the Commissioner of Social Security or designee at least 30 days before the planned operational date. A certification as used in this section means a written justification signed by the Deputy Commissioner of the requesting SSA component or designee, that specifies general information on the following: the operational need for listening-in to or recording telephone conversations; the telephone lines and locations where monitoring is to be performed; the position titles (or a statement about the types) of SSA employees involved in the listening-in to or recording of telephone conversations; the general operating times and an expiration date for the monitoring. This certification of need must identify the telephone lines which will be subject to monitoring, e.g., SSA 800 number voice and text telephone lines, and include current copies of any documentation, analyses, determinations, policies and procedures supporting the application, and the name and telephone number of a contact person in the SSA component which is requesting authority to listen-in to or record telephone conversations. (1) When the request involves listening-in to or recording telephone conversations for public safety purposes, the requesting component head or designee must identify the segment of the public needing protection and cite examples of the possible harm from which the public requires protection. (2) When the request involves listening-in to or recording telephone conversations for public service monitoring purposes, the requesting component head or designee must provide a statement in writing why such monitoring is necessary for measuring or monitoring the performance in the delivery of SSA service to the public; or monitoring and improving the integrity, quality and utility of service provided to the public. (b) At least every 5 years, SSA will review the need for each determination authorizing listening-in or recording activities in the agency. SSA components or authorized agents involved in conducting listening-in or recording activities must submit documentation as described in § 422.710(a) to the Commissioner of Social Security or a designee to continue or terminate telephone service observation activities. (c) SSA will comply with the following controls, policies and procedures when listening-in or recording is associated with public service monitoring. (1) SSA will provide a message on SSA telephone lines subject to public service monitoring that will inform callers that calls on those lines may be monitored for quality assurance purposes. SSA will also continue to include information about telephone monitoring activities in SSA brochures and/or pamphlets as notification that some incoming and outgoing SSA telephone calls are monitored to ensure SSA's clients are receiving accurate and courteous service. (2) SSA employees authorized to listen-in to or record telephone calls are permitted to annotate personal identifying information about the calls, such as a person's name, Social Security number, address and/or telephone number. When this information is obtained from public service monitoring as defined in § 422.705(c), it will be used for programmatic or policy purposes; e.g., recontacting individuals to correct or supplement information relating to benefits, for assessment of current/proposed policies and procedures, or to correct SSA records. Privacy Act requirements must be followed if data are retrievable by personal identifying information. (3) SSA will take appropriate corrective action, when possible, if information obtained from monitoring indicates SSA may have taken an incorrect action which could affect the payment of or eligibility to SSA benefits. (4) Telephone instruments subject to public service monitoring will be conspicuously labeled. (5) Consent from both parties is needed to tape record SSA calls for public service monitoring purposes. (d) The recordings and records pertaining to the listening-in to or recording of any conversations covered by this subpart shall be used, safeguarded and destroyed in accordance with SSA records management program. Subpart I—Administrative Claims Collection Authority: Sec. 97, Pub. L. 97-365, 96 Stat. 1749; Sec. 104, Pub. L. 104-134, 110 Stat. 1321; 5 U.S.C. 552; 5 U.S.C. 553; 31 U.S.C. 3711; 31 U.S.C. 3716; 31 U.S.C. 3717; 31 U.S.C. 3720A; 31 U.S.C. 3720B; 31 U.S.C. 3720C; 31 U.S.C. 3720D; 31 U.S.C. 3720E; 31 CFR parts 901-904; 31 CFR part 285; 5 U.S.C. 5514; 5 CFR part 550; 42 U.S.C. 902(a)(5). Source: 80 FR 61734, Oct. 14, 2015, unless otherwise noted. § 422.801 Scope of this subpart. (a) The regulations in this part are issued under the Debt Collection Act of 1982, as amended by the Debt Collection Improvement Act of (DCIA) 1996 (31 U.S.C. 3701, et seq. (b) This subpart describes the procedures relating to the collection, compromise, and suspension of administrative debts owed to us, the Social Security Administration (SSA). (c) Administrative debts include claims against current employees, separated employees, and non-employee debtors. (1) Employee debts include salary overpayments; advanced sick and annual leave, advanced religious compensatory time, overpayments of health benefit premiums, leave buy back, emergency employee payments, travel, and transit subsidies. (2) Non-employee debts include vendor overpayments, reimbursable agreements, Supplemental Security Income Medicaid determinations, and economic recovery payments. (d) This subpart does not apply to programmatic overpayments described in subparts D and E of this part, and §§ 404.527 and § 416.590 of this title. (e) This subpart does not apply to civil monetary penalties arising from sections 1129 and 1140 of the Social Security Act and collected pursuant to part 498 of this title. § 422.803 Collection activities. (a) We will collect all administrative debts arising out of our activities or that are referred or transferred to us, the Social Security Administration, for collection actions. We will send an initial written demand for payment no later than 30 days after an appropriate official determines that a debt exists. (b) In accordance with 31 CFR 285.12(c) and (g), we transfer legally enforceable administrative debts that are 120 calendar days or more delinquent to Treasury for debt collection services ( i.e., (1) Is in litigation or foreclosure; (2) Will be disposed of under an approved asset sale program within one year of becoming eligible for sale; (3) Has been referred to a private collection contractor for a period acceptable to the Secretary of the Treasury; (4) Is at a debt collection center for a period of time acceptable to Treasury (see paragraph (c) of this section); (5) Will be collected under internal offset procedures within three years after the debt first became delinquent; or (6) Is exempt from this requirement based on a determination by Treasury that exemption for a certain class of debt is in the best interest of the United States. (c) Pursuant to 31 CFR 285.12(h), we may refer debts less than 120 calendar days delinquent to Treasury or, with the consent of Treasury, to a Treasury-designated debt collection center to accomplish efficient, cost effective debt collection. Referrals to debt collection centers will be at the discretion of, and for a period acceptable to, the Secretary of the Treasury. Referrals may be for servicing, collection, compromise, suspension, or termination of collection action. (d) We may refer delinquent administrative debts to Treasury for offset through the Treasury Offset Program (TOP). Administered by Treasury, TOP's centralized offset process permits Treasury to withhold funds payable by the United States to a person to collect and satisfy delinquent debts the person owes Federal agencies and States. (e) We may collect an administrative debt by using Administrative Wage Garnishment. (f) We may collect an administrative debt by using Federal Salary Offset. § 422.805 Demand for payment. (a) Written demand for payment. (2) We will send a demand letter no later than 30 days after the appropriate official determines that the debt exists. We will send the demand letter to the debtor's last known address. (3) When necessary to protect the Government's interest, we may take appropriate action under this part, including immediate referral to DOJ for litigation, before sending the written demand for payment. (b) Demand letters. (1) The written demand for payment will include the following information: (i) The nature and amount of the debt, including the basis for the indebtedness; (ii) The date by which payment should be made to avoid late charges and enforced collection, which must be no later than 30 days from the date the demand letter is mailed; (iii) Where applicable, the standards for imposing any interest, penalties, or administrative costs as specified under § 422.807; (iv) The rights, if any, the debtor may have to: (A) Seek review of our determination of the debt, and for purposes of salary offset or Administrative Wage Garnishment, request a hearing. To request a hearing see §§ 422.810(h) and 422.833(f)); and (B) Enter into a reasonable repayment agreement when necessary and authorized. (v) An explanation of how the debtor may exercise any of the rights described in paragraph (b)(1)(iv) of this section; (vi) The name, address, and phone number of a contact person or office to address any debt-related matters; and (vii) Our remedies to enforce payment of the debt, which may include: (A) Garnishing the debtor's wages through Administrative Wage Garnishment; (B) Offsetting any Federal or State payments due the debtor, including income tax refunds, salary, certain benefit payments; (C) Referring the debt to a private collection contractor; (D) Reporting the debt to a credit bureau or other automated database; (E) Referring the debt to the DOJ for litigation; and (F) Referring the debt to the Department of the Treasury for any of the collection actions described in paragraphs (b)(1)(vii)(A) through (E) of this section. (2) The written demand for payment should also include the following information: (i) The debtor's right to review our records pertaining to the debt, or, if the debtor or the debtor's representative cannot personally review the records, to request and receive copies of such records; (ii) Our willingness to discuss alternative methods of payment with the debtor; (iii) If a Federal employee, the debtor may be subject to disciplinary action under 5 CFR part 752 or other applicable authority; (iv) Any amounts collected and ultimately found to not be owed by the debtor will be refunded; (v) For salary offset, up to 15 percent of the debtor's current disposable pay may be deducted every pay period until the debt is paid in full; and (vi) Dependent upon applicable statutory authority, the debtor may be entitled to consideration for a waiver. (c) Evidence retention. (d) Pursue offset. (e) Communications from debtors. (f) Exception. § 422.807 Interest, penalties, and administrative costs. (a) Except as provided in paragraphs (g), (h), and (i) of this section, we will charge interest, penalties, and administrative costs on delinquent debts owed to the United States. These charges will continue to accrue until the debtor pays the debt in full or otherwise resolves the debt through compromise, termination, or an approved waiver. (b) Interest. (1) Interest will accrue from the date of delinquency or as otherwise provided by law. For debts not paid by the date specified in the written demand for payment made under § 422.805, the date of delinquency is the date of mailing of the notice. The date of delinquency for an installment payment is the due date specified in the payment agreement. (2) Unless a different rate is prescribed by statute, contract, or a repayment agreement, the rate of interest charged will be the rate established annually by the Treasury pursuant to 31 U.S.C. 3717. We may charge a higher rate if necessary to protect the rights of the United States, and the Commissioner has determined and documented a higher rate for delinquent debt is required to protect the Government's interests. (3) Unless prescribed by statute or contract, the initial rate of interest charged will remain fixed for the duration of the indebtedness. A debtor who defaults on a repayment agreement may seek to enter into a new agreement. If we agree to a new agreement, we may require additional financial information and payment of interest at a new rate that reflects the Treasury rate in effect at the time the new agreement is executed or at a higher rate consistent with paragraph (b)(2) of this section. Interest will not be compounded. That is, we will not charge interest on the interest, penalties, or administrative costs required by this section, except as permitted by statute or contract. If, however, the debtor defaults on a previous repayment agreement, we will add charges that accrued but were not collected under the defaulted agreement to the principal of any new repayment agreement. (c) Penalty. (d) Administrative costs. (e) Cost of living adjustment. (f) Priority. (g) Waiver. (2) We may waive interest, penalties, and administrative charges charged under this section, in whole or in part, without regard to the amount of the debt, based on: (i) The criteria set forth at § 422.846 (b)(1) for the compromise of debts; or (ii) A determination by the agency that collection of these charges is: (A) Against equity and good conscience; or (B) Not in the best interest of the United States. (h) Review. (2) Exception. (i) Common law or other statutory authority. § 422.809 Collection in installments. Whenever feasible, we will collect the total amount of a debt in one lump sum payment. If a debtor claims a financial inability to pay a debt in one lump sum, by funds or Administrative Offset, we may accept payment in regular installments provided the debtor establishes the financial need and no evidence indicates that fraud or similar fault affected the debt. We will request financial statements from debtors who represent that they are unable to pay in one lump sum and independently verify such representations as described in § 422.846. (a) When we agree to accept payments in regular installments, we will obtain a legally enforceable written agreement from the debtor that specifies all the terms and conditions of the agreement and includes a provision accelerating the debt in the event of a default. (b) The size and frequency of the payments will reasonably relate to the size of the debt and the debtor's ability to pay. Whenever feasible, the installment agreement will provide for full payment of the debt, including interest and charges, in three years or less. (c) When appropriate, the agreement will include a provision identifying security obtained from the debtor for the deferred payments, such as a surety bond or confession of judgment supporting a lien on any property of the debtor. (d) An approved installment agreement does not prevent the use of Administrative Wage Garnishment or other collection tools in this subpart. § 422.810 Salary offset for current employees. (a) Purpose. (b) Authority. (c) Scope. (2) The procedures contained in this part do not apply to any case where an employee consents to collection through deduction(s) from the employee's pay account, or to debts arising under the Internal Revenue Code or the tariff laws of the United States, or where another statute explicitly provides for or prohibits collection of a debt by salary offset (e.g., travel advances in 5 U.S.C. 5705 and employee training expenses in 5 U.S.C. 4108). (3) This part does not preclude an employee from requesting a waiver of an erroneous payment under 5 U.S.C. 5584, 10 U.S.C. 2774, or 32 U.S.C. 716, or in any way questioning the amount or validity of a debt. Similarly, this part does not preclude an employee from requesting waiver of the collection of a debt under any other applicable statutory authority. (4) Provided a debt is not affected by fraud and does not exceed $100,000, nothing in this part precludes the compromise of the debt or the suspension or termination of collection actions in accordance with §§ 422.846 and 422.848 of this title. (d) Definitions. Administrative Offset Agency Creditor agency Day Debt Debt collection center Debtor Delinquent debt Disposable pay Employee Evidence of service Hearing Hearing official Paying agency Salary offset Waiver (e) General rule. (2) Except as provided in paragraph (e)(3) of this section, prior to initiating collection through salary offset under this part, we will first provide the employee with the following: (i) A notice as described in paragraph (f) of this section; and (ii) An opportunity to petition for a hearing, and, if a hearing is provided, to receive a written decision from the hearing official within 60 days on the following issues: (A) The determination concerning the existence or amount of the debt; and (B) The repayment schedule, unless it was established by written agreement between the employee and us. (3) The provisions of paragraph (e)(2) of this section do not apply to: (i) Any adjustment to pay arising out of an employee's election of coverage or a change in coverage under a federal benefits program requiring periodic deduction from pay, if the amount to be recovered was accumulated over four pay periods or less; (ii) A routine intra-agency adjustment of pay that is made to correct an overpayment of pay attributable to clerical or administrative errors or delays in processing pay documents, if the overpayment occurred within four pay periods preceding the adjustment and, at the time of such adjustment, or as soon thereafter as practical, the individual is provided a notice of the nature and the amount of the adjustment and point of contact for contesting such adjustment; or (iii) Any adjustment to collect a debt amount in accordance with the amount stated in 5 U.S.C. 5514 as amended by the DCIA, if, at the time of such adjustment, or as soon thereafter as practical, the individual is provided a notice of the nature and the amount of the adjustment and a point of contact for contesting such adjustment. (f) Notice requirements before offset. (i) We have reviewed the records relating to the debt and have determined that a debt is owed, the amount of the debt, and the facts giving rise to the debt; (ii) Our intention to collect the debt by means of deduction from the employee's current disposable pay until the debt and all accumulated interest, penalties, and administrative costs are paid in full; (iii) The amount, stated either as a fixed dollar amount or as a percentage of pay not to exceed 15 percent of disposable pay, the frequency, the commencement date, and the duration of the intended deductions; (iv) An explanation of our policies concerning the assessment of interest, penalties, and administrative costs, stating that such assessments must be made unless waived in accordance with 31 CFR 901.9 and § 422.807 of this part; (v) The employee's right to review and copy all of our records pertaining to the debt or, if the employee or the employee's representative cannot personally review the records, to request and receive copies of such records; (vi) If not previously provided, the opportunity to establish a schedule for the voluntary repayment of the debt through offset or to enter into an agreement to establish a schedule for repayment of the debt in lieu of offset provided the agreement is in writing, signed by both the employee and us, and documented in our files; (vii) The right to a hearing conducted by an impartial hearing official with respect to the existence and amount of the debt, or the repayment schedule, so long as a petition is filed by the employee as prescribed in paragraph (h) of this section; (viii) Time limits and other procedures or conditions for reviewing our records pertaining to the debt, establishing an alternative repayment agreement, and requesting a hearing; (ix) The name, address, and telephone number of the person or office who may be contacted concerning the procedures for reviewing our records, establishing an alternative repayment agreement, and requesting a hearing; (x) The name and address of the office to send the petition for a hearing; (xi) A timely and properly filed petition for a hearing will suspend the commencement of the collection proceeding; (xii) We will initiate action to effect salary offset not less than 30 days from the date of mailing the notice, unless the employee properly files a timely petition for a hearing, (xiii) A final decision on a hearing, if one is requested, will be issued at the earliest practical date, but not later than 60 days after the filing of the petition requesting the hearing unless the employee requests and the hearing official grants a delay in the proceeding; (xiv) Notice that an employee who knowingly makes false or frivolous statements or submits false or frivolous representations or evidence may be subject to disciplinary procedures under chapter 75 of title 5, United States Code, Part 752 of title 5, CFR, or any other applicable statutes or regulations; (xv) Any other rights and remedies available to the employee under statutes or regulations governing the program for which the collection is being made; (xvi) Unless there are applicable contractual or statutory provisions to the contrary, amounts paid on or deducted for the debt that are later waived or found not owed to the United States will be promptly refunded to the employee; and (xvii) Proceedings with respect to such debt are governed by 5 U.S.C. 5514. (2) We will retain evidence of service indicating the date of mailing of the notice. (g) Review of records relating to the debt. (2) In response to a timely request as described in paragraph (1) of this section, we will notify the employee of the location and time when the employee may review and copy such records. If the employee or employee's representative is unable to review personally such records as the result of geographical or other constraints, we will arrange to send copies of such records to the employee. (h) Hearings Petitions for hearing. (ii) The petition must: (A) Be signed by the employee; (B) Fully identify and explain with reasonable specificity all the facts, evidence, and witnesses, if any, that the employee believes support his or her position; and (C) Specify whether an oral or paper hearing is requested. If an oral hearing is requested, the request should explain why the matter cannot be resolved by a paper hearing, which is a determination of the request for reconsideration based upon a review of the written record. (iii) The timely filing of a petition for hearing will suspend any further collection proceedings. (2) Failure to timely request a hearing. (ii) An employee waives the right to a hearing and will have his or her disposable pay offset in accordance with the offset schedule established by us, if the employee: (A) Fails to file a timely request for a hearing unless such failure is excused; or (B) Fails to appear at an oral hearing of which the employee was notified unless the hearing official determines that the failure to appear was due to circumstances beyond the employee's control. (3) Form of hearings General. (ii) Oral hearing. (A) Informal conferences with the hearing official in which the employee and agency representative will be given full opportunities to present evidence, witnesses, and arguments; (B) Informal meetings in which the hearing official interviews the employee by phone or videoconferencing; or (C) Formal written submissions with an opportunity for oral presentations. (iii) Paper hearing. (iv) Record. (4) Written decision Date of decision. (ii) Content of decision. (A) A statement of the facts presented to support the origin, nature, and amount of the debt; (B) The hearing official's findings, analysis, and conclusions, including a determination whether the employee's petition for hearing was baseless and resulted from an intent to delay the creditor agency's collection activity; and (C) The terms of any repayment schedule, if applicable. (5) Failure to appear. (i) Obtaining the services of a hearing official. (1) When we cannot provide a prompt and appropriate hearing before an administrative law judge or a hearing official furnished pursuant to another lawful arrangement, the office designated in paragraph (f)(1)(x) of this section may contact an agent of any agency designated in 5 CFR part 581, appendix A to arrange for a hearing official. (2)(i) When another agency is the creditor agency, not SSA, it is the responsibility of that agency to arrange for a hearing if one is requested. We will provide a hearing official upon the request of a creditor agency when the debtor is employed by us and the creditor agency cannot provide a prompt and appropriate hearing before a hearing official furnished pursuant to another lawful arrangement. (ii) Services rendered to a creditor agency under paragraph (i)(2)(i) of this section will be provided on a fully reimbursable basis pursuant to the Economy Act of 1932, as amended by 31 U.S.C. 1535. (3) The determination of a hearing official designated under this section is considered an official certification regarding the existence and amount of the debt for purposes of executing salary offset under 5 U.S.C. 5514 and this part. A creditor agency may make a certification to the Secretary of the Treasury under 5 CFR 550.1108 or a paying agency under 5 CFR 550.1109 regarding the existence and amount of the debt based on the certification of a hearing official. If a hearing official determines that a debt may not be collected via salary offset, but we find that the debt is still valid, we may still seek collection of the debt through other means, such as offset of other Federal payments or litigation. (j) Voluntary repayment agreement in lieu of salary offset. (A) Be in writing; (B) Be signed by both the employee and the agency; (C) Specify all the terms of the arrangement for payment; and (D) Contain a provision accelerating the debt in the event of default by the employee, but such an increase may not result in a deduction that exceeds 15 percent of the employee's disposable pay unless the employee has agreed in writing to a deduction of a greater amount. (ii) Any proposal under paragraph (j)(1)(i) of this section must be received within 30 days of the date of the notice. (2) In response to a timely request as described in paragraph (j)(1) of this section, we will notify the employee whether the proposed repayment schedule is acceptable. It is within our discretion to accept a proposed alternative repayment schedule and to set the necessary terms of a voluntary repayment agreement. (3) No voluntary repayment agreement will be binding on us unless it is in writing and signed by the employee and us. (k) Special review. (2)(i) In determining whether an offset would prevent the employee from meeting essential subsistence expenses (e.g., food, housing, clothing, transportation, and medical care), the employee must submit a detailed statement and supporting documents for the employee, his or her spouse, and dependents indicating: (A) Income from all sources; (B) Assets and liabilities; (C) Number of dependents; (D) Food, housing, clothing, transportation, and medical expenses; and (E) Exceptional and unusual expenses, if any. (ii) When requesting a special review under this section, the employee must file an alternative proposed offset or payment schedule and a statement, with supporting documents as described in paragraph (k)(2)(i) of this section, stating why the current salary offset or payments result in an extreme financial hardship to the employee. (3)(i) We will evaluate the statement and supporting documents and determine whether the original offset or repayment schedule impose extreme financial hardship on the employee. (ii) Within 30 calendar days of the receipt of the request and supporting documents, we will notify the employee in writing of such determination, including, if appropriate, a revised offset or repayment schedule. (4) If the special review results in a revised offset or repayment schedule, we will do a new certification based on the result of the review. (l) Procedures for salary offset Method and source of deductions. (2) Limitation on amount of deduction. (3) Duration of deductions Lump sum. (ii) If the employee is deemed financially unable to pay in one lump sum or the amount of the debt exceeds 15 percent of the employee's disposable pay for an officially established pay interval, the agency will collect the debt in installments. Except as provided in paragraphs (k)(5) and (6) of this section, installment deductions must be made over a period no longer than the anticipated period of active duty or employment. (4) When deductions may begin. (ii) If the employee files a timely petition for hearing as provided in paragraph (h) of this section, the agency will begin deductions after the hearing official has provided the employee with a hearing and a final written decision has been rendered in favor of the agency. (5) Liquidation from final check. (6) Recovery from other payments due a separated employee. (m) Exception to internal salary offset. (n) Salary offset when we are the paying agency but not the creditor agency. (o) Interest, penalties, and administrative costs. (p) Non-waiver of rights. (q) Refunds. (i) A debt is waived or otherwise found not owed to us; or (ii) We are directed by administrative or judicial order to refund amount deducted from the employee's current pay. (2) Unless required or permitted by law or contract, refunds will not bear interest. (r) Additional administrative collection action. § 422.811 Discretionary referral for cross-servicing. We may refer legally enforceable non-tax administrative debts that are less than 120 calendar days delinquent to the Department of the Treasury (Treasury) or to Treasury-designated “debt collection centers” in accordance with 31 CFR 285.12 to accomplish efficient, cost effective debt collection. § 422.813 Mandatory referral for cross-servicing. (a) Pursuant to the cross-servicing process, creditor agencies must transfer any eligible debt more than 120 calendar days delinquent to the Department of the Treasury (Treasury) for debt collection services. As one such agency, pursuant to 31 CFR 285.12, we are required to transfer to Treasury any legally enforceable nontax debt in excess of $25. We may transfer to Treasury any combination of legally enforceable nontax debts less than $25 that exceeds $25 (in the case of a debtor whose taxpayer identification number (TIN) is unknown, the applicable threshold is $100) that has or have been delinquent for a period of 120 calendar days. Treasury will take appropriate action on behalf of the creditor agency to collect, compromise, suspend, or terminate collection of the debt, including use of debt collection centers and private collection contractors to collect the debt or terminate collection action. (b) Debts not eligible for mandatory referral of paragraph (a) of this section include: (1) Debts owed by a Federal agency; (2) Debts owed by a deceased debtor; (3) Debts not legally enforceable: A debt is considered legally enforceable for purposes of referral to the Treasury's Bureau of the Fiscal Service if there has been a final agency determination that the debt is due and there are no legal bars to collection; (4) Debts that are the subject of an administrative appeal until the appeal is concluded and the amount of the debt is fixed; (5) Debts owed by a debtor who has filed for bankruptcy protection or the debt has been discharged in bankruptcy proceeding; or (6) Debts that are less than $25 (including interest, penalties, and administrative costs). (c) A debt is considered delinquent for purposes of this section if it is 120 calendar days past due and is legally enforceable. A debt is past due if it has not been paid by the date specified in the agency's initial written demand for payment or applicable agreement or instrument (including a post-delinquency payment agreement) unless other satisfactory payment arrangements have been made. A debt is legally enforceable if there has been a final agency determination that the debt, in the amount stated, is due and there are no legal bars to collection action. Where, for example, a debt is the subject of a pending administrative review process required by statute or regulation and collection action during the review process is prohibited, the debt is not considered legally enforceable for purposes of mandatory transfer to the Treasury and is not to be transferred even if the debt is more than 120 calendar days past due. When a final agency determination is made after an administrative appeal or review process, the creditor agency must transfer such debt to Treasury, if more than 120 calendar days delinquent, within 30 days after the date of the final decision. (d) We may also refer debts owed by a foreign country upon consultation with our Office of the General Counsel. § 422.815 Referral of administrative debts to the Department of the Treasury. (a) Agencies are required by law to transfer delinquent, nontax, and legally enforceable debts to Department of the Treasury (Treasury) for collection through cross-servicing and through centralized Administrative Offset. Additionally, we may transfer debts to the Treasury for collection through Administrative Wage Garnishment. Agencies need not make duplicate referrals to Treasury for all these purposes; we may refer a debt to Treasury for purposes of simultaneous collection by cross-servicing, centralized Administrative Offset, and Administrative Wage Garnishment where applicable. However, in some instances a debt exempt from cross-servicing collection may be subject to collection by centralized Administrative Offset, so simultaneous referrals are not always appropriate. (b) When we refer or transfer administrative debts to Treasury, or Treasury-designated debt collection centers under the authority of 31 U.S.C. 3711(g), Treasury will service, collect, or compromise the debts, or Treasury will suspend or terminate the collection action, in accordance with the statutory requirements and authorities applicable to the collection of such debts. (c) Debts that are not required for referral include: (1) Debts delinquent for 120 calendar days or less; (2) Debts less than $100 and we are unable to obtain the debtor's taxpayer identification number; (3) Debts in litigation or foreclosure as defined in 31 CFR 285.12(d)(2); (4) Debts that have been referred to a private collection contractor for a period acceptable to Treasury; (5) Debts that will be disposed of under an approved asset sale program as defined in 31 CFR 285.12(d)(3)(i); (6) Debts that will be collected under internal offset procedures within three years after the debt first became delinquent; (7) Debts at a debt collection center for a period of time acceptable to Treasury; or (8) Debts exempt from this requirement based on a determination by the Secretary of the Treasury that exemption for a certain class of debt is in the best interest of the United States. Federal agencies may request that the Secretary of the Treasury exempt specific classes of debts. Any such request by an agency must be sent to the Fiscal Assistant Secretary of the Treasury by the agency's Chief Financial Officer. § 422.817 Required certification. Before referring delinquent administrative debts to the Department of the Treasury (Treasury) for collection, we will certify, in writing, that: (a) The debts we are transferring are valid and legally enforceable; (b) There are no legal bars to collection; and (c) We have complied with all prerequisites to a particular collection action under the laws, regulations, or policies applicable to us, unless we agree that Treasury will do so on our behalf. § 422.819 Fees. Federal agencies operating Department of the Treasury-designated debt collection centers are authorized to charge a fee for services rendered regarding referred or transferred debts. The fee may be paid out of amounts collected and may be added to the debt as an administrative cost. § 422.821 Administrative offset. (a) Scope. (2) This section does not apply to: (i) Debts arising under the Social Security Act; (ii) Payments made under the Social Security Act, except as provided for in 31 U.S.C. 3716(c), and 31 CFR 285.4; (iii) Debts arising under, or payments made under the Internal Revenue Code or the tariff laws of the United States; (iv) Offsets against Federal salaries to the extent these standards are inconsistent with regulations published to implement such offsets under 5 U.S.C. 5514 and 31 U.S.C. 3716 (see 5 CFR part 550, subpart K; 31 CFR 285.7; §§ 422.810 and 422.829 of this part); (v) Offsets under 31 U.S.C. 3728 against a judgment obtained by a debtor against the United States; (vi) Offsets or recoupments under common law, State law, or Federal statutes specifically prohibiting offsets or recoupments for particular types of debts; or (vii) Offsets in the course of judicial proceedings, including bankruptcy. (3) Unless otherwise provided for by contract or law, debts or payments that are not subject to Administrative Offset under 31 U.S.C. 3716 may be collected by Administrative Offset under the common law or other applicable statutory authority. (4) In bankruptcy cases, the agency may seek legal advice from the Office of the General Counsel concerning the impact of the Bankruptcy Code, particularly 11 U.S.C. 106, 362, and 553, on pending or contemplated collections by offset. (b) [Reserved] § 422.822 Notification of intent to collect by administrative offset. (a) Prior to initiation of collection by Administrative Offset, we will: (1) Send the debtor a notice by mail or hand-delivery. The notice will include the type and amount of the debt, the intention of the agency using internal offset or non-centralized Administrative Offset to collect the debt 30 days after the date of the notice, and the name of the Federal agency from which the creditor agency wishes to collect in the case of a non-centralized Administrative Offset. Additionally, if the debt is not satisfied by offset within the Social Security Administration or by agreement with another Federal agency, the notice will include the intent to refer the debt to the Department of the Treasury (Treasury) for collection through centralized Administrative Offset, including offset of tax refunds 60 days after the date of the notice as well as an explanation of the debtor's rights under 31 U.S.C. 3716. (2) Give the debtor the opportunity: (i) To make a voluntary payment; (ii) To review and copy agency records related to the debt; (iii) For a review within the agency of the determination of indebtedness; (iv) To make a written agreement to repay the debt. (b) The procedures set forth in paragraph (a) of this section are not required when: (1) The offset is in the nature of a recoupment; (2) The debt arises under a contract subject to the Contracts Disputes Act or Federal Acquisition Regulations; (3) In the case of a non-centralized Administrative Offset (see § 422.824), the agency first learns of the existence of the amount owed by the debtor when there is insufficient time before payment would be made to the debtor/payee to allow for prior notice and an opportunity for review. When prior notice and an opportunity for review are omitted, we will give the debtor such notice and an opportunity for review as soon as practicable and will promptly refund any money ultimately found not to have been owed to the agency; or (4) The agency previously has given a debtor any of the notice and review opportunities required under this part, with respect to a particular debt. Subsequently, any interest accrued or any installments coming due after we initiate an offset would not require a new notice and opportunity to review. (c) The notice will be included as part of a demand letter issued under § 422.805 to advise the debtor of all debt collection possibilities that the agency will seek to employ. § 422.823 Debtor rights to review or copy records, submit repayment proposals, or request administrative review. (a) A debtor who intends to review or copy our records with respect to the debt must notify us in writing within 30 days of the date of the notice as described in section § 422.822. In response, we will notify the debtor of the location, time, and any other conditions for reviewing and copying. The debtor may be liable for reasonable copying expenses. (b) In response to the notice as described in section § 422.822, the debtor may propose a written agreement to repay the debt as an alternative to Administrative Offset. Any debtor who wishes to do this must submit a written proposal for repayment of the debt, which we must receive within 30 days of the date of the notice as described in section § 422.822 or 15 days after the date of a decision adverse to the debtor. In response, we will notify the debtor whether we need additional information, for example, financial status information. We will obtain any necessary authorization required to approve the agreement, and we will issue a written determination whether the proposed agreement is acceptable. In exercising our discretion, we will balance the Government's interest in collecting the debt against fairness to the debtor. (c) A debtor must request an administrative review of the debt within 30 days of the date of the notice as described in section § 422.822 for purposes of a proposed collection by non-centralized Administrative Offset pursuant to § 422.824. A debtor must request an administrative review of the debt within 60 days of the date of the notice as described in section § 422.822 for purposes of a proposed collection by centralized Administrative Offset for offset against other Federal payments that would include tax refunds pursuant to § 422.825. (1) For purposes of this section, whenever we are required to provide a debtor a review within the agency, we will give the debtor a reasonable opportunity for an oral hearing, either by telephone or in person, when the debtor requests reconsideration of the debt and we determine that the question of the indebtedness cannot be resolved by review of the documentary evidence. (2) Unless otherwise required by law, an oral hearing under this section is not required to be a formal evidentiary hearing, although we will carefully document all significant matters discussed at the hearing. (3) An oral hearing is not required with respect to debts where determinations of indebtedness rarely involve issues of credibility or veracity, and we have determined that a review of the written record is adequate to correct prior mistakes. (4) In those cases when an oral hearing is not required by this section, we will provide the debtor a paper hearing, that is, a determination of the request for reconsideration based upon a review of the written record. § 422.824 Non-centralized administrative offset. (a) Unless otherwise prohibited by law, when centralized Administrative Offset under § 422.825 is not available or appropriate, we may collect a past due, legally enforceable, nontax delinquent debt by conducting non-centralized Administrative Offset internally or in cooperation with the agency certifying or authorizing payments to the debtor. Generally, non-centralized Administrative Offsets are ad hoc case-by-case offsets that an agency conducts at its own discretion, internally or in cooperation with a second agency certifying or authorizing payments to the debtor. In these cases, we may make a request directly to a payment-authorizing agency to offset a payment due a debtor to collect a delinquent debt. We adopt the procedures in 31 CFR 901.3(c) so that we may request the Department of the Treasury or any other payment-authorizing agency to conduct a non-centralized Administrative Offset. (b) Administrative Offset may be initiated only after: (1) The debtor has been sent a notice of the type and amount of the debt, the intention to initiate Administrative Offset to collect the debt, and an explanation of the debtor's rights under 31 U.S.C. 3716; and (2) The debtor has been given: (i) The opportunity to review and copy records related to the debt; (ii) The opportunity for a review within the department of the determination of indebtedness; and (iii) The opportunity to make a written agreement to repay the debt. (c) The agency may omit the requirements under paragraph (b) of this section when: (1) Offset is in the nature of a recoupment ( i.e., (2) The debt arises under a contract as set forth in Cecile Industries, Inc. Cheney, (3) In the case of non-centralized Administrative Offset conducted under paragraph (a) of this section, the agency first learns of the existence of the amount owed by the debtor when there is insufficient time before payment would be made to the debtor to allow for prior notice and an opportunity for review. When prior notice and an opportunity for review are omitted, we will give the debtor such notice and an opportunity for review as soon as practical and will promptly refund any money ultimately found not to have been owed to the Government. (d) When the debtor previously has been given any of the required notice and review opportunities with respect to a particular debt, such as under § 422.805, we need not duplicate such notice and review opportunities before Administrative Offset may be initiated. (e) Before requesting that a payment-authorizing agency conduct non-centralized Administrative Offset, we will: (1) Provide the debtor with due process as set forth in paragraph (b) of this section; and (2) Provide the payment-authorizing agency written certification that the debtor owes the past due, legally enforceable delinquent debt in the amount stated and that we have fully complied with this section. (f) When a creditor agency requests that we, as the payment authorizing agency, conduct non-centralized Administrative Offset, we will comply with the request, unless the offset would not be in the best interest of the United States with respect to the program of the agency, or would otherwise be contrary to law. Appropriate use should be made of the cooperative efforts of other agencies in effecting collection by Administrative Offset, including salary offset. (g) When collecting multiple debts by non-centralized Administrative Offset, we will apply the recovered amounts to those debts in accordance with the best interests of the United States, as determined by the facts and circumstances of the particular case, particularly the applicable statute of limitations. § 422.825 Centralized administrative offset. (a) Mandatory referral. (b) Discretionary referral. (c) Procedures for referral. § 422.827 Offset against tax refunds. We will take action to effect Administrative Offset against tax refunds due to debtors in accordance with the provisions of 31 U.S.C. 3720A through referral for centralized Administrative Offset under § 422.825. § 422.829 Federal salary offset. (a) Referral to the Department of the Treasury for offset. (2) Treasury will use Federal Salary Offset to collect overdue administrative debts from Federal employees, including employees of the Social Security Administration. A Federal employee's involuntary payment of all or part of a debt collected by Federal Salary Offset does not amount to a waiver of any rights that the employee may have under any statute or contract, unless a statute or contract provides for waiver of such rights. (b) Debts we will refer. (c) Notice to debtor. (1) The nature and amount of the debt; (2) That we have determined that payment of the debt is overdue; and (3) That we will refer the debt for Administrative Offset (except as provided in paragraph (c)(9) of this section) at the expiration of not less than 60 calendar days after the date of the notice unless, within that 60-day period: (i) The debtor pays the full amount of the debt, or (ii) The debtor takes any of the actions described in paragraphs (c)(6) or (c)(7) of this section. (4) The frequency and amount of any Federal Salary Offset deduction (the payment schedule) expressed as a fixed dollar amount or percentage of disposable pay. (5) The debtor may review or copy our records relating to the debt. If the debtor or his or her representative cannot personally review the records, the debtor may request and receive a copy of such records. (6) The debtor may request a review of the debt by giving us evidence showing that the debtor does not owe all or part of the amount of the debt or that we do not have the right to collect it. The debtor may also request review of any payment schedule for Federal Salary Offset stated in the notice. If the debtor is an employee of the Federal Government and Federal Salary Offset is proposed, an official designated in accordance with 5 U.S.C. 5514(a)(2) will conduct the review. (7) The debtor may request to repay the debt voluntarily through an installment payment plan. (8) If the debtor knowingly furnishes any false or frivolous statements, representations, or evidence, the debtor may be subject to appropriate disciplinary procedures under applicable statutes or regulations when the debtor is a Federal employee. (9) We will refer the debt for Federal Salary Offset at the expiration of not less than 60 calendar days after the date of the notice unless, within that 60 day period, the debtor takes any actions described in paragraphs (c)(3)(i), (c)(6), or (c)(7) of this section. (d) Federal Salary Offset: amount, frequency and duration of deductions. (2) Federal Salary Offset will begin not less than 60 calendar days after the date of the notice to the debtor described in paragraph (c) of this section. (3) Once begun, Federal Salary Offset will continue until Treasury recovers the full amount of the debt, the debt is otherwise resolved, or the debtor's Federal employment ceases, whichever occurs first. (4) After Federal Salary Offset begins, the debtor may request a reduction in the amount deducted from disposable pay each payday. When Treasury determines that the amount deducted causes financial harm under the rules in § 422.833(j), they will reduce that amount. Treasury will not reduce the amount from the debtor's disposable pay if the debt was caused by: (A) An intentional false statement by the debtor, or (B) The debtor's willful concealment of, or failure to furnish, material information. (2) “Willful concealment” means an intentional, knowing and purposeful delay in providing, or failure to reveal, material information. (e) Refunds. § 422.833 Administrative wage garnishment for administrative debts. (a) Purpose. (b) Authority. (1) This part will apply notwithstanding any provision of State law. (2) Nothing in this part precludes the compromise of a debt or the suspension or termination of collection action in accordance with § 422.803 of this title or other applicable law or regulation, and the Commissioner has retained the authority. The Department of Justice has exclusive authority to suspend or terminate collection action on a debt affected by fraud. (3) The receipt of payments pursuant to this part does not preclude us from pursuing other debt collection remedies, including the offset of Federal or State payments to satisfy delinquent non-tax debt owed to the United States. We will pursue such debt collection remedies separately or in conjunction with Administrative Wage Garnishment. (4) This section does not apply to the collection of delinquent non-tax debts owed to the United States from the wages of Federal employees from their Federal employment. Federal pay is subject to the Federal Salary Offset procedures set forth in 5 U.S.C. 5514 and other applicable laws. (5) Nothing in this section requires us to duplicate notices or administrative proceedings required by contract or other laws or regulations. (c) Definitions. (1) Business day (2) Day (3) Debt (4) Debtor (5) Delinquent debt (6) Disposable pay (7) Employer (8) Garnishment (9) Hearing (10) Hearing official (11) Treasury (12) Withholding order (d) General rule. (2) Treasury will not garnish the wages of a debtor who we know has been involuntarily separated from employment until the debtor has been re-employed continuously for at least 12 months. The debtor has the burden to inform the agency of the circumstances surrounding an involuntary separation from employment. (e) Notice Notice requirements. (i) The nature and amount of the debt; (ii) The intention to initiate proceedings to collect the debt through deductions from pay until the debt and all accumulated interest, penalties, and administrative costs are paid in full; (iii) The debtor's right: (A) To review and copy our records related to the debt; (B) To enter into a written repayment which is agreeable to the agency; (C) To a hearing, in accordance with paragraph (f) of this section, concerning the existence or the amount of the debt or the terms of the proposed repayment schedule under the garnishment order, except that the debtor is not entitled to a hearing concerning the proposed repayment schedule if the terms were established by written agreement pursuant to paragraph (1)(iii)(B) of this section; and (iv) The periods within which the debtor may exercise his or her rights. (2) Treasury will keep a copy of the dated notice. (f) Hearing In general. (2) Request for hearing. (ii) Effect of timely request: Subject to paragraph (e)(10) of this section, if the debtor's written request is received on or before the 15 business days following the mailing of the notice required under this part, a withholding order will not be issued under paragraph (g) of this section until the debtor has been provided the requested hearing, and a decision in accordance with paragraphs (e)(7) and (8) of this section has been rendered. (iii) Failure to timely request a hearing: If the debtor's written request is received after the 15th business day following the mailing of the notice required under this part, Treasury will provide a hearing to the debtor. However, Treasury may not delay the issuance of a withholding order unless they determine that the delay in submitting such request was caused by factors beyond the control of the debtor, or receive information that they determine justifies a delay or cancellation of the withholding order. (3) Oral hearing. (ii) If the hearing official decides to have a hearing, a debtor can specify to Treasury whether he or she wants to appear in person or by telephone. At the debtor's option, the oral hearing may be conducted in person or by telephone conference. The hearing official will notify the debtor of the date, time, and in the case of an in-person hearing, the location of the hearing. All travel expenses incurred by the debtor in connection with an in-person hearing will be borne by the debtor. (4) Paper hearing. (ii) The hearing official will notify the debtor of the deadline for the submission of additional evidence if necessary for a review of the record. (5) Burden of proof. (ii) Thereafter, if the debtor disputes the existence or amount of the debt, the debtor must present Treasury preponderant evidence that no debt exists or that the amount is incorrect. Debtors challenging the terms of a repayment schedule must provide preponderant evidence to Treasury that the terms of the repayment schedule are unlawful, would cause the debtor financial hardship, or that operation of law prohibits collection of the debt. (6) Record. (7) Date of decision. (ii) If the hearing official is unable to provide the debtor with a hearing and render a decision within 60 days after the receipt of the request for such hearing: (A) A withholding order may not be issued until the hearing is held and a decision is rendered; or (B) A withholding order previously issued to the debtor's employer must be suspended beginning on the 61st day after the receipt of the hearing request and continuing until a hearing is held and a decision is rendered. (8) Content of decision. (i) A summary of the facts presented; (ii) The hearing official's findings, analysis, and conclusions; and (iii) The terms of any repayment schedule, if applicable. (9) Final agency action. et seq. (10) Failure to appear. (g) Withholding order. (h) Certification by employer. (i) Amounts withheld. (2) Subject to paragraphs (h)(3)(i) and (h)(4) of this section, the amount of garnishment will be the lesser of: (i) The amount indicated on the garnishment order up to 15 percent of the debtor's disposable pay; or (ii) The amount set forth in 15 U.S.C. 1673(a)(2) (Maximum allowable garnishment). The amount set forth at 15 U.S.C. 1673(a)(2) is the amount by which a debtor's disposable pay exceeds an amount equivalent to thirty times the minimum wage. See 29 CFR 870.10. (3)(i) Except as provided in paragraph (h)(3)(ii) of this section, when a debtor's pay is subject to multiple withholding orders, unless otherwise provided by Federal law, withholding orders issued pursuant to this part will have priority over other withholding orders that are served later. (ii) Notwithstanding the foregoing, withholding orders for family support will have priority over withholding orders issued under this part. (iii) If amounts are being withheld from a debtor's pay pursuant to a withholding order served on an employer before a withholding order issued pursuant to this part, or if a withholding order for family support is served on an employer at any time, the amounts withheld pursuant to a withholding order issued under this part will be the lesser of: (A) The amount calculated under paragraph (h)(3)(iii)(B) of this section; or (B) An amount equal to 25 percent of the debtor's disposable pay less the amount(s) withheld under the withholding order(s) with priority. (4) If the debtor owes more than one debt to the agency, Treasury will issue multiple withholding orders provided that the total amount garnished from the debtor's pay for such orders does not exceed the amount set forth in paragraph (h)(2) of this section. (5) An amount greater than that set forth in paragraphs (h)(2) or (3) of this section may be withheld with the debtor's written consent. (6) The employer will promptly pay all amounts withheld in accordance with the withholding order issued pursuant to this part. (7) The employer is not required to vary its normal pay and disbursement cycles in order to comply with the withholding order. (8) Any assignment or allotment by an employee will be void to the extent it interferes with or prohibits execution of the withholding order issued under this part, except for any assignment or allotment made pursuant to a family support judgment or order. (9) The employer will withhold the appropriate amount from the debtor's wages for each pay period until the employer receives notification from the agency to discontinue wage withholding. (10) The withholding order, SF-329B “Wage Garnishment Order,” sent to the employer under paragraph (g) of this section, requires the employer to commence wage withholding on the first payday after the employer receives the order. However, if the first payday is within 10 days after receipt of the order, the employer may elect to begin deductions on the second payday. (11) An employer may not discharge, refuse to employ, or take disciplinary action against any debtor because of the issuance of a withholding order under this part. (j) Financial hardship. (2) A debtor requesting review under paragraph (i)(1) of this section will submit the basis for the claim that the current amount of garnishment results in a financial hardship to the debtor, along with supporting documentation. Treasury will consider any information submitted in accordance with this part. (3) If Treasury finds financial hardship, to reflect the debtor's financial condition, Treasury will downwardly adjust the amount garnished by an amount and for a period established by the agency. Treasury will notify the employer of any adjustments in the amount to be withheld. (k) Fraud and willful concealment or failure to furnish information. (l) Refunds. (2) Unless required by Federal law or contract, refunds under this part will not bear interest. (m) Ending garnishment. (2) At least annually, Treasury will review debtors' accounts to ensure that garnishment has ended for accounts that have been paid in full. (n) Employers' responsibilities and right of action. (2) Treasury may bring suit against an employer for any amount that the employer fails to withhold from wages owed and payable to a debtor in accordance with paragraphs (g) and (i) of this section, plus attorney's fees, costs, and, if applicable, punitive damages. (3) A suit under this section may not be filed before the end of the collection action involving a particular debtor, unless earlier filing is necessary to avoid expiration of any applicable statute of limitations period. For purposes of this section, “end of collection action” occurs when we have completed taking collection action in accordance with part 422, subpart I of this title or other applicable law or regulation. (4) Notwithstanding any other provision or action referred to in this section, the end of the collection action will be deemed to occur one (1) year after the agency does not receive any payment of wages that were subject to a garnishment order issued under this part. § 422.835 Debt reporting and use of credit reporting agencies. (a) Reporting delinquent debts. (2) We will report administrative debts owed by individuals to consumer reporting agencies pursuant to 5 U.S.C. 552a(b)(12). We may disclose only the individual's name, address, and Social Security number and the nature, amount, status, and history of the debt. (3) Once we refer a debt to the Department of the Treasury (Treasury) for collection, Treasury may handle any subsequent reporting to or updating of a credit bureau or other automated database. (4) Where there is reason to believe that a debtor has filed a bankruptcy petition, prior to proceeding under this paragraph (a), we will contact the Office of the General Counsel for legal advice concerning the impact of the Bankruptcy Code, particularly with respect to the applicability of the automatic stay, 11 U.S.C. 362, and the procedures for obtaining relief from such stay. (5) If the debtor has not received prior notice under § 422.805, before reporting a delinquent debt under this section, we will provide the debtor at least 60 days notice including: (i) The amount and nature of the debt; (ii) That the debt is delinquent and that we intend to report the debt to a credit bureau; (iii) The specific information that we will disclose; (iv) The right to dispute the accuracy and validity of the information being disclosed; and (v) If a previous opportunity was not provided, the right to request review of the debt or rescheduling of payment. (b) Use of credit reporting agencies. § 422.837 Contracting with private collection contractors and with entities that locate and recover unclaimed assets. (a) Subject to the provisions of paragraph (b) of this section, we may contract with private collection contractors to recover delinquent debts, if: (1) We retain the authority to resolve disputes, compromise debts, suspend or terminate collection action, and, as appropriate, to refer debts to the Department of Justice for review and litigation; (2) The private collection contractor is not allowed to offer the debtor, as an incentive for payment, the opportunity to pay the debt less the private collection contractor's fee, unless we have granted such authority prior to the offer; (3) The contract provides that the private collection contractor is subject to the Privacy Act of 1974 to the extent specified in 5 U.S.C. 552a(m) and to applicable Federal and State laws and regulations pertaining to debt collection practices, including, but not limited, to the Fair Debt Collection Practices Act, 15 U.S.C. 1692; and (4) The private collection contractor is required to account for all amounts collected. (b) We will use government-wide debt collection contracts to obtain debt collection services provided by private collection contractors. However, we may refer debts to private collection contractors pursuant to a contract between the agency and the private collection contractor only if such debts are not subject to the requirement to transfer debts to the Treasury for debt collection under 31 U.S.C. 3711(g) and 31 CFR 285.12(e). (c) Debts arising under the Social Security Act (which can be collected by private collection contractors only by Department of the Treasury (Treasury) after the debt has been referred to Treasury for collection) are excluded from this section. (d) We may fund private collection contractor contracts in accordance with 31 U.S.C. 3718(d) or as otherwise permitted by law. A contract under paragraph (a) of this section may provide that the fee a private collection contractor charges the agency for collecting the debt is payable from the amounts collected. (e) We may enter into contracts for locating and recovering assets of the United States, including unclaimed assets. However, before entering into a contract to recover assets of the United States that may be held by a State Government or financial institution, we must establish procedures that are acceptable to the Secretary of the Treasury. (f) We enter into contracts for debtor asset and income search reports. In accordance with 31 U.S.C. 3718(d), such contracts may provide that the fee a contractor charges the agency for such services may be payable from the amounts recovered unless otherwise prohibited by statute. § 422.839 Offset against amounts payable from civil service retirement and disability fund and the Federal employees' retirement system. Upon providing the Office of Personnel Management (OPM) written certification that a debtor has been afforded the procedures provided in § 422.823 of this part, we may request OPM to offset a debtor's anticipated or future benefit payments under the Civil Service Retirement and Disability Fund (Fund) and the Federal Employees' Retirement System (FERS) in accordance with regulations codified at 5 CFR 831.1801 through 831.1808, and 5 CFR part 845 Subpart D. Upon receipt of such a request, OPM will identify and “flag” a debtor's account in anticipation of the time when the debtor requests, or becomes eligible to receive, payments from the Fund or FERS. § 422.842 Liquidation of collateral. (a)(1) If the debtor fails to pay the debt(s) within a reasonable time after demand and if such action is in the best interests of the United States, we will liquidate security or collateral through the exercise of a power of sale in the security instrument or a non-judicial foreclosure and apply the proceeds to the applicable debt(s). (2) Collection from other sources, including liquidation of security or collateral, is not a prerequisite to requiring payment by a surety, insurer, or guarantor unless such action is expressly required by statute or contract. (3) We will give the debtor reasonable notice of the sale and an accounting of any surplus proceeds and will comply with other requirements under law or contract. (b) Where there is reason to believe that a bankruptcy petition has been filed with respect to a debtor, we will contact the Office of the General Counsel for legal advice concerning the impact of the Bankruptcy Code, particularly with respect to the applicability of the automatic stay, 11 U.S.C. 362, and the procedures for obtaining relief from such stay prior to proceeding under paragraph (a) of this section. § 422.846 Bases for compromise. (a) Scope and application Scope. (2) Application. (b) Bases for compromise Compromise. (i) Inability to pay. (A) Age and health of the debtor; (B) Present and potential income; (C) Inheritance prospects; (D) The possibility that assets have been concealed or improperly transferred by the debtor; and (E) The availability of assets or income that may be realized by enforced collection proceedings. (ii) Inability to collect full debt. (A) In determining the Government's ability to enforce collection, we will consider the applicable exemptions available to the debtor under State and Federal law, and we may also consider uncertainty as to the price any collateral or other property will bring at a forced sale. (B) A compromise affected under this section should be for an amount that bears a reasonable relation to the amount that can be recovered by enforced collection procedures, with regard to any exemptions available to the debtor and the time that collection will take. (iii) Cost of collection. (A) The amount accepted in compromise of such debts may reflect an appropriate discount for the administrative and litigation costs of collection, with consideration given to the time it will take to effect collection. Collection costs may be a substantial factor in the settlement of small debts. (B) In determining whether the costs of collection justify enforced collection of the full amount, we will consider whether continued collection of the debt, regardless of cost, is necessary to further an enforcement principal, such as the Government's willingness to pursue aggressively defaulting and uncooperative debtors. (iv) Doubtful debt can be proven in court. (A) If significant doubt exists concerning the Government's ability to prove its case in court for the full amount claimed, either because of the legal issues involved or because of a legitimate dispute as to the facts, then the amount accepted in compromise should fairly reflect the probabilities of successful prosecution to judgment, with due regard to the availability of witnesses and other evidentiary support for the Government's claim. (B) In determining the litigation risks involved, we will consider the probable amount of court costs and attorney fees a court may impose pursuant to the Equal Access to Justice Act, 28 U.S.C. 2412, if the Government is unsuccessful in litigation. (2) Installments. (c) Enforcement policy. (d) Joint and several liability. (2) We will ensure that a compromise agreement with one debtor does not automatically release the agency's claim against the remaining debtor(s). The amount of a compromise with one debtor will not be considered a precedent or binding in determining the amount that will be required from other debtors jointly and severally liable on the claim. (e) Further review of compromise offers. (f) Consideration of tax consequences to the Government. (g) Mutual release of the debtor and the Government. § 422.848 Suspension and termination of collection activities. (a) Scope and application Scope. (2) Application. (ii) If we believe that suspension or termination of any debt that relates to a claim that appears to be fraudulent, false, or misrepresented by a party with an interest in the claim or that exceeds $100,000 may be appropriate, we will use the Claims Collection Litigation Report to refer the debt to the Civil Division or other appropriate litigating division in the DOJ. The referral will specify the reasons for our recommendation. If, prior to referral to the DOJ, we determine that a debt is plainly erroneous or clearly without merit, we may terminate collection activity regardless of the suspected fraud or amount involved without obtaining the DOJ's concurrence. (b) Suspension of collection activity. (i) The debtor cannot be located; (ii) The debtor's financial condition is not expected to improve; or (iii) The debtor has requested a legally permissible waiver or review of the debt. (2) Financial condition. (i) No applicable statute of limitations has expired; or (ii) Future collection can be effected by Administrative Offset, notwithstanding the expiration of the applicable statute of limitations for litigation of claims, with due regard to any statute of limitation for Administrative Offset prescribed by 31 U.S.C. 3716(e)(1); or (iii) The debtor agrees to pay interest on the amount of the debt on which collection will be suspended and suspension is likely to enhance the debtor's ability to pay the full amount of the principal of the debt with interest at a later date. (3) Waiver or review. (ii) If the statute under which the waiver or administrative review request is sought does not prohibit collection activity pending consideration of the request, we may use discretion, on a case-by-case basis, to suspend collection. We will ordinarily suspend collection action upon a request for waiver or review if we are prohibited by statute or regulation from issuing a refund of amounts collected prior to agency consideration of the debtor's request. However, we will not suspend collection when we determine that the request for waiver or review is frivolous or was made primarily to delay collection. (4) Bankruptcy. (c) Termination of collection activity. (i) We are unable to collect any substantial amount through our own efforts or through the efforts of others; (ii) We are unable to locate the debtor; (iii) Costs of collection are anticipated to exceed the amount recoverable; (iv) The debt is legally without merit or enforcement of the debt is barred by any applicable statute of limitations; (v) The debt cannot be substantiated; or (vi) The debt against the debtor has been discharged in bankruptcy. (2)(i) Collection activity will not be terminated before we have pursued all appropriate means of collection and determined, based upon the results of the collection activity, that the debt is uncollectible. (ii) Termination of collection activity ceases active collection of the debt. The termination of collection activity does not preclude us from retaining a record of the account for purposes of: (A) Selling the debt, if the Secretary of the Department of the Treasury (Treasury) determines that such sale is in the best interest of the United States; (B) Pursuing collection at a subsequent date in the event there is a change in the debtor's status or a new collection tool becomes available; (C) Offsetting against future income or assets not available at the time of termination of collection activity; or (D) Screening future applicants for prior indebtedness. (3) We will terminate collection activity on a debt that has been discharged in bankruptcy, regardless of the amount. We may continue collection activity, however, subject to the provisions of the Bankruptcy Code, for any payments provided under a plan of reorganization. Offset and recoupment rights may survive the discharge of the debtor in bankruptcy and, under some circumstances, claims also may survive the discharge. For example, when we are a known creditor of a debtor, the claims of the agency may survive a discharge if we did not receive notice of the bankruptcy proceeding or the debt was affected by fraud. When we believe that the agency has claims or offsets that may have survived the discharge of the debtor, we will contact the Office of the General Counsel for legal advice. (d) Exception to termination. (e) Discharge of indebtedness; reporting requirements. (ii) Discharge of indebtedness is distinct from termination or suspension of collection activity under this subpart, and is governed by the Internal Revenue Code. When collection action on a debt is suspended or terminated, the debt remains delinquent and further collection action may be pursued at a later date in accordance with the standards set forth in this part and 31 CFR parts 900 through 904. (iii) When we discharge a debt in full or in part, further collection action is prohibited. Therefore, before discharging a debt, we must: (A) Make the determination that collection action is no longer warranted; and (B) Terminate debt collection action. (2) In accordance with 31 U.S.C. 3711(i), we will use competitive procedures to sell a delinquent debt upon termination of collection action if the Secretary of the Treasury determines such a sale is in the best interests of the United States. Since the discharge of a debt precludes any further collection action, including the sale of a delinquent debt, we may not discharge a debt until the requirements of 31 U.S.C. 3711(i) have been met. (3) Upon discharge of indebtedness, we must report the discharge to the Internal Revenue Service (IRS) in accordance with the requirements of 26 U.S.C. 6050P and 26 CFR 1.6050P-1. We may request that Treasury or Treasury-designated debt collection centers file such a discharge report to the IRS on our behalf. (4) When discharging a debt, we must request that litigation counsel release any liens of record securing the debt. [80 FR 61734, Oct. 14, 2015, as amended at 88 FR 1329, Jan. 10, 2023] § 422.850 Referrals to the Department of Justice. (a) Prompt referral. (ii) We may refer debts arising out of activities of, or referred or transferred for collection services to, the agency to DOJ for litigation. (2)(i) Debts for which the principal amount is over $100,000 or such other amount as the Attorney General may direct, exclusive of interest, penalties, and administrative costs will be referred to the Civil Division or other division responsible for litigating such debts at the DOJ. (ii) Debts for which the principal amount is $1,000,000 or less, or such other amount as the Attorney General may direct, exclusive of interest, penalties, and administrative costs will be referred to the Nationwide Central Intake Facility at the DOJ as required by the Claims Collections Litigation Report (CCLR) instructions. (3)(i) Consistent with aggressive agency collection activity and the standards contained in this part and 31 CFR parts 900 through 904, debts will be referred to the DOJ as early as possible and, in any event, well within the period for initiating timely lawsuits against the debtors. (ii) We will make every effort to refer delinquent debts to the DOJ for litigation within one year of the date such debts last became delinquent. In the case of guaranteed or insured loans, we will make every effort to refer these delinquent debts to the DOJ for litigation within one year from the date the debt was known to the agency. (4) The DOJ has exclusive jurisdiction over debts referred to it pursuant to this subpart. Upon referral of a debt to the DOJ, we will: (i) Immediately terminate the use of any administrative collection activities to collect the debt; (ii) Advise the DOJ of the collection tools utilized and the results of activities to date; and (iii) Refrain from having any contact with the debtor and direct all debtor inquiries concerning the debt to the DOJ. (5) After referral of a debt under this subpart, we will immediately notify the DOJ of any payments credited by the agency to the debtor's account. Pursuant to 31 CFR 904.1(b), after referral of the debt under this subpart, the DOJ will notify the agency of any payment received from the debtor. (b) Claims Collection Litigation Report. (ii) We will complete all sections of the CCLR appropriate to each debt as required by the CCLR instructions and furnish such other information as may be required in specific cases. (2) We will indicate clearly on the CCLR the actions that we wish the DOJ to take with respect to the referred debt. We may indicate specifically any of a number of litigation activities the DOJ may choose to pursue, including enforced collection, judgment lien only, renew judgment lien only, renew judgment lien and enforced collection, program enforcement, foreclosure only, and foreclosure and deficiency judgment. (3) We will also use the CCLR to refer a debt to the DOJ for the purpose of obtaining any necessary approval of a proposal to compromise a debt or to suspend or terminate administrative collection activity on a debt. (c) Preservation of evidence. (d) Minimum amount of referrals. (2) We will not refer claims of less than the minimum amount unless: (i) Litigation to collect such smaller amount is important to ensure compliance with the agency's policies and programs; (ii) The agency is referring the claim solely for the purpose of securing a judgment against the debtor, which will be filed as a lien against the debtor's property pursuant to 28 U.S.C. 3201 and returned to the agency for enforcement; or (iii) The debtor has the clear ability to pay the claim and the Government can enforce payment effectively, with due regard for the exemptions available to the debtor under State and Federal law and the judicial remedies available to the Government. (3) We will consult with the Financial Litigation Staff of the Executive Office for United States Attorneys at DOJ prior to referring claims valued at less than the minimum amount. Subpart J—Protecting the Public and Our Personnel To Ensure Operational Effectiveness Authority: Sec. 702(a)(4)-(5) of the Social Security Act (42 U.S.C. 902(a)(4)-(5)). Source: 76 FR 54702, Sept. 2, 2011, unless otherwise noted. § 422.901 Scope and purpose. The regulations in this subpart describe the process we will follow when we decide whether to ban you from entering our offices. Due to increasing reports of threats to our personnel and the public, we are taking steps to increase the level of protection we provide to our personnel and to the public. The purpose of this subpart is to inform the public and our personnel of the conduct that will subject an individual to a ban and the procedures we will follow when banning an individual from entering our offices. We expect that the regulations will result in a safer environment for our personnel and the public who visit our facilities, while ensuring that our personnel can continue to serve the American people with as little disruption to our operations as possible. § 422.902 Definition of personnel for purposes of this subpart. We will construe the term “personnel” broadly to mean persons responsible for or engaged in carrying out the responsibilities, programs, or services of or on behalf of the agency. Personnel includes, but is not limited to, our employees, contractors, consultants, and examiners and State disability determination services (DDS) employees, contractors, consultants, and examiners. § 422.903 Prohibited conduct. We will ban you from entering our offices if you: (a) Physically or verbally assault our personnel or a member of the public in our occupied space; (b) Use force or threats of force against our personnel or offices, including but not limited to communicating threats in person or by phone, facsimile, mail, or electronic mail; (c) Engage in disruptive conduct that impedes our personnel from performing their duties; or (d) Engage in disruptive conduct that impedes members of the public from obtaining services from our personnel. § 422.904 Notice of the ban. If an agency manager makes a decision in writing that you pose a threat to the safety of our personnel, visitors, office, or the operational effectiveness of the agency, we will send you a notice banning you from our offices. The notice will contain the following information: (a) Type of restriction. (b) Prohibited conduct. (c) Alternate means of service. (1) You may use the online services available through our Web site at http://www.socialsecurity.gov; (2) You may call your local office. Your notice will include the contact information for your local office. You should ask to speak with the office manager or a supervisor; (3) You may call our national toll-free number at 1-800-772-1213 between the hours of 7 a.m. and 7 p.m., Monday through Friday. You should not attempt to schedule an in-person appointment through this number. If you are deaf or hard of hearing, you may call our toll-free TTY number at 1-800-325-0778; (4) You may write to your local office. You should address all correspondence to the attention of the office manager; (5) With your written consent, another person may call, write, or visit us to conduct business on your behalf. (d) Appeal rights. (e) Periodic request for review of ban decision. § 422.905 Appeal rights. You may appeal our decision to ban you. You must submit your appeal in writing to the address identified in the notice within 60 days of the date of the notice. You should identify your name, address, Social Security number, and the office that issued the notice of the ban. The appeal should clearly state why we should reconsider our decision and provide any supporting documentation. We may allow an additional 10 days for the late filing of an appeal if you show good cause for the late filing. The ban will remain in effect while the appeal is pending. We will notify you of our decision in writing. § 422.906 Periodic request for review of ban decision. You may request review of our ban decision every three years. The three-year cycle to request review will begin on the date we issued notice of the ban, or if you appealed, the date of our appeal decision. You must submit your request for review of a ban decision in writing to the address identified in the original notice of the ban. Your request for review should identify your name, address, Social Security number, and office that issued the notice of the ban. Your request should clearly state why we should lift the ban and provide relevant documentation that supports removal of the restriction, including medical documentation, applicable psychiatric evaluations, work history, and any criminal record. You must prove by a preponderance of the evidence (meaning that it is more likely than not) that you no longer pose a threat to the safety of our personnel or visitors or the operational effectiveness of the agency. We will notify you of our decision in writing. § 422.907 Posting requirement. We will post the regulation in this subpart in a conspicuous place in our offices that serve the public.

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