5.4—What notice will Treasury entities send to a debtor when collecting a Treasury debt?
(a) Notice requirements.
Treasury entities shall aggressively collect
Treasury debts. Treasury entities shall promptly send at least one written notice to
a debtor informing the debtor of the consequences of failing to pay or otherwise
resolve a Treasury debt. The notice(s) shall be sent to the debtor at the most
current address of the debtor in the records of the Treasury entity collecting the
debt. Generally, before starting the collection actions described in §§ 5.5 and 5.9
through 5.17 of this part, Treasury entities will send no more than two written
notices to the debtor. The purpose of the notice(s) is to explain why the debt is
owed, the amount of the debt, how a debtor may pay the debt or make alternate
repayment arrangements, how a debtor may review documents related to the debt, how a
debtor may dispute the debt, the collection remedies available to Treasury entities
if the debtor refuses to pay the debt, and other consequences to the debtor if the
debt is not paid. Except as otherwise provided in paragraph (b) of this section, the
written notice(s) shall explain to the debtor:
(2)
How interest, penalties, and administrative costs are added to the debt, the date by which payment should be made to avoid such charges, and
that such assessments must be made unless excused in accordance with 31 CFR 901.9
(see § 5.5 of this part );
(3)
The date by which payment should be made to avoid the enforced collection
actions described in paragraph (a)(6) of this section;
(4)
The Treasury entity's willingness to discuss alternative payment arrangements
and how the debtor may enter into a written agreement to repay the debt under terms
acceptable to the Treasury entity (see § 5.6 of this part );
(5)
The name, address, and telephone number of a contact person or office within
the Treasury entity;
(6)
The Treasury entity's intention to enforce collection if the debtor fails to
pay or otherwise resolve the debt, by taking one or more of the following
actions:
(i) Offset.
Offset the debtor's Federal payments, including income
tax refunds, salary, certain benefit payments (such as Social Security), retirement,
vendor, travel reimbursements and advances, and other Federal payments (see §§ 5.10 through 5.12 of this part);
(ii) Private collection agency.
Refer the debt to a private
collection agency (see § 5.15 of this part );
(iv) Administrative wage garnishment.
Garnish the debtor's wages
through administrative wage garnishment (see § 5.13 of this part );
(v) Litigation.
Refer the debt to the Department of Justice to
initiate litigation to collect the debt (see § 5.16 of this part );
(vi) Treasury Department's Financial Management Service.
Refer the
debt to the Financial Management Service for collection (see § 5.9 of
this part );
(7)
That Treasury debts over 180 days delinquent must be referred to the Financial
Management Service for the collection actions described in paragraph (a)(6) of this
section (see § 5.9 of this part );
(9)
How the debtor may request a review of the Treasury entity's determination that
the debtor owes a debt and present evidence that the debt is not delinquent or
legally enforceable (see §§ 5.10(c) and 5.11(c) of this part );
(10)
How a debtor may request a hearing if the Treasury entity intends to garnish
the debtor's private sector (i.e., non-Federal) wages (see § 5.13(a) of this part ), including:
(ii)
That the timely filing of a request for a hearing on or before the 15th
business day following the date of the notice will stay the commencement of
administrative wage garnishment, but not necessarily other collection procedures;
and
(11)
How a debtor who is a Federal employee subject to Federal salary offset may
request a hearing (see § 5.12(e) of this part ), including:
(ii)
That the timely filing of a request for a hearing on or before the 15th
calendar day following receipt of the notice will stay the commencement of salary
offset, but not necessarily other collection procedures;
(iv)
That the Treasury entity will refer the debt to the debtor's employing agency
or to the Financial Management Service to implement salary offset, unless the
employee files a timely request for a hearing;
(v)
That a final decision on the hearing, if requested, will be issued at the
earliest practical date, but not later than 60 days after the filing of the request
for a hearing, unless the employee requests and the hearing official grants a delay
in the proceedings;
(vi)
That any knowingly false or frivolous statements, representations, or evidence
may subject the Federal employee to penalties under the False Claims Act (31 U.S.C.
3729-373 1) or other applicable statutory authority, and criminal penalties under 18
U.S.C. 286, 287, 1001, and 1002, or other applicable statutory authority;
(vii)
That unless prohibited by contract or statute, amounts paid on or deducted
for the debt which are later waived or found not owed to the United States will be
promptly refunded to the employee; and
(viii)
That proceedings with respect to such debt are governed by 5 U.S.C. 5514 and
31 U.S.C. 3716 ;
(12)
How the debtor may request a waiver of the debt, if applicable (see,
for example, Treasury Directive 34-01 (Waiving Claims Against Treasury
Employees for Erroneous Payments), set forth at Appendix A of this part and at http://www.treas.gov/regs );
(13)
How the debtor's spouse may claim his or her share of a joint income tax
refund by filing Form 8379 with the Internal Revenue Service (see
http://www.irs.gov )
(14)
How the debtor may exercise other statutory or regulatory rights and remedies
available to the debtor;
(15)
That certain debtors may be ineligible for Federal Government loans,
guaranties and insurance (see
31 U.S.C. 3720B, 31 CFR 285.13, and §
5.17(a) of this part );
(16)
If applicable, the Treasury entity's intention to suspend or revoke licenses,
permits or privileges (see § 5.17(b) of this part ); and
(17)
That the debtor should advise the Treasury entity of a bankruptcy proceeding
of the debtor or another person liable for the debt being collected.
(b) Exceptions to notice requirements.
(a)
sury entity may omit
from a notice to a debtor one or more of the provisions contained in paragraphs
(a)(6) through (a)(17) of this section if the Treasury entity, in consultation with
its legal counsel, determines that any provision is not legally required given the
collection remedies to be applied to a particular debt.
(c) Respond to debtors; comply with FCCS.
Treasury entities should
respond promptly to communications from debtors and comply with other FCCS
provisions applicable to the administrative collection of debts. See 31 CFR part 901.