PART 31—TAX REFUND OFFSET Authority: 31 U.S.C. 3720A, 31 CFR 285.2, E.O. 12866, E.O. 13258. Source: 68 FR 70445, Dec. 18, 2003, unless otherwise noted. § 31.1 Purpose and scope. (a) Purpose. (b) Authority. (c) Scope. (2) Nothing in this part precludes the Department from pursuing other debt collection procedures, including administrative wage garnishment under part 32 of this title, to collect a debt that has been submitted to the Department of the Treasury under this part. The Department may use such debt collection procedures separately or in conjunction with the offset collection procedures of this part. § 31.2 Definitions. In this part, unless the context otherwise requires: Administrative offset Day Debt claim Debtor Department Evidence of service FMS IRS Legally enforceable Operating division Past-due debt Secretary Taxpayer identifying number Tax refund offset Tax refund payment § 31.3 General rule. (a) Any past-due, legally enforceable debt of at least $25, or such other minimum amount as determined by the Secretary of the Treasury, shall be submitted to FMS for collection by tax refund offset. (b) FMS will compare tax refund payment records, as certified by the IRS, with records of debts submitted by the Department under this part. A match will occur when the taxpayer identification number and name of a payment certification record are the same as the taxpayer identifying number and name control of a debtor record. When a match occurs and all other requirements for tax refund offset have been met, FMS will reduce the amount of any tax refund payment payable to a debtor by the amount of any past-due legally enforceable debt. Any amounts not offset will be paid to the payee(s) listed in the payment certification record. § 31.4 Certification and referral of debt. (a) Certification. (1) The debt is past-due and legally enforceable in the amount submitted and that the Department will ensure that collections are properly credited to the debt; (2) Except in the case of a judgment debt or as otherwise allowed by law, the debt is referred within ten (10) years after the Department's right of action accrues; (3) The Department has made reasonable efforts to obtain payment of the debt, and has: (i) Submitted the debt to FMS for collection by offset and complied with the administrative offset provision of 31 U.S.C. 3716(a) and related regulations, to the extent that collection by administrative offset is not prohibited by statute; (ii) Notified, or made a reasonable attempt to notify, the debtor that the debt is past-due, and unless paid within 60 days of the date of the notice, the debt may be referred to Treasury for tax refund offset. For purposes of this regulation, the Department has made a reasonable attempt to notify the debtor if the agency uses the current address information contained in the Department's records related to the debt. If address validation is desired or necessary, the Department may obtain information from the IRS pursuant to 26 U.S.C. 6103(m)(2)(4) or (5). (iii) Given the debtor at least 60 days to present evidence that all or part of the debt is not past-due or not legally enforceable, considered any evidence presented by the debtor, and determined that the debt is past-due and legally enforceable; and (iv) Provided the debtor with an opportunity to make a written agreement to repay the debt; and (4) The debt is at least $25. (b) Referral. (2) For each debt referred under this part, the Secretary will include the following information: (i) The name and taxpayer identifying number, as defined in 26 U.S.C. 6109, of the debtor responsible for the debt; (ii) The amount of such past-due and legally enforceable debt; (iii) The date on which the debt became past-due; and (iv) The designation of the Department referring the debt. (c) Correcting and updating referral. (i) An error was made with respect to information transmitted to the Department of the Treasury; (ii) The Department receives a payment or credits a payment to the account of a debtor referred for tax refund offset; or (iii) The debt amount is otherwise incorrect. (2) The Department shall provide the certification required under paragraph (a) of this section for any increases to amounts owed. (d) Rejection of certification. § 31.5 Notice. (a) Requirements. (1) The nature and amount of the debt; (2) The determination that the debt is past-due and legally enforceable, and unless paid within 60 days after the date of the notice, the Secretary intends to enforce collection by referring the debt the Department of the Treasury for tax refund offset; and (3) The debtor's rights to: (i) Inspect and copy Department records relating to the debt; (ii) Enter into written agreement to repay the amount of the debt; (iii) Request review and present evidence that all or part of the debt is not past-due or not legally enforceable. (b) The Secretary will retain evidence of service indicating the date of mailing of the notice. The notice may be retained electronically so long as the manner of retention is sufficient for evidentiary purposes § 31.6 Review of Departmental records. (a) To inspect or copy Departmental records relating to the debt, the debtor must send a written request to the address designated in the notice described in section 31.5. The request must be received by the Department within 60 days from the date of the notice. (b) In response to a timely request as described in paragraph (a) of this section, the designated Department official shall notify the debtor of the location and time when the debtor may inspect and copy such records. If the debtor is unable to personally inspect such records as the result of geographical or other constraints, the Department will arrange to send copies of the records to the debtor. § 31.7 Review of a determination that a debt is past-due and legally enforceable. (a) Requesting a review. (2) The request for review must be signed by the debtor, state the amount disputed, and fully identify and explain the evidence that the debtor believes supports the debtor's position. The debtor must submit with the request any documents that the debtor wishes to be considered, or the debtor must state in the request that additional information will be submitted within the above specified time period. (3) Failure to timely request a review will be deemed an admission by the debtor that the debt is past-due and legally enforceable, and will result in a referral of the debt to the Department of the Treasury without further action. (b) Review. (c) A debt that previously has been reviewed pursuant to this part, or that has been reduced to a judgment, will not be reconsidered under this part unless the evidence presented by the debtor disputes payments made or events occurring subsequent to the previous review or judgment.