1900.25 REV-3

CHG-1

Appendix 18

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IRS OFFSET AND CREDIT BUREAU/COLLECTION

AGENCY LETTERS

This appendix provides examples of letters to be sent to

debtors by the DCO giving required notice of the Department\'s

intent to proceed with special collection initiatives. These

include:

\- Notice of Intent to Offset Internal Revenue service

(IRS) Tax Refund.

\- Notice of Disclosure of Debt to consumer Reporting

Agencies.

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1900.25 REV-3

CHG-1

Appendix 18

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NOTICE OF INTENT TO OFFSET IRS TAX REFUND

EXAMPLE

Ms. June Debtor

123 Any Street

Somewhere, USA 00000-0000

Dear Ms. Debtor:

SUBJECT: Notice of intent to offset Internal Revenue Service

(IRS) tax refund

HUD Claim Number. - number

Date of the Debt. - date

You have not satisfied your debt to the Department of

Housing and Urban Development (HUD) which arose from:

Debt origination particulars including program

identification, etc.

The current amount due as of the date of this letter is:

principal \$ amount , interest \$ amount , penalty \$ amount , and

administrative costs \$ amount for a total of \$ amount . As

you have not indicated your willingness to repay this debt in

an acceptable manner, we now find it necessary to resort to

other action.

This letter is official notification that, unless your

account is repaid within 65 days from the date of this letter,

the Department intends to request the IRS to offset the amount

of your debt (including any interest and other charges) against

any Federal tax refund to which you are entitled. It is

important that you understand that you will still be legally

responsible for repayment of any remaining balance on your

account if the amount of the tax refund is inadequate to

satisfy your debt. Interest at the rate of amount percent

per annum, a 6 percent per annum penalty, and administrative

cost will continue to accrue until the obligation has been

satisfied.

You have the right to obtain a review of the Department\'s

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letter must be received by the Board within 25 days of this

notice. Direct your letter for review to:

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1900.25 REV-3

CHG-1

Appendix 18

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The HUD Board of Contract Appeals

Department of Housing and Urban Development

Room 2158

451 7th Street, SW

Washington, DC 20410-0001

A copy of the letter should be sent to:

The Offsets Docket Clerk

Department of Housing and Urban Development

Room 10251

451 7th Street, SW

Washington, DC 20410-0500

Please include the claim number referenced at the top of

this letter and a telephone number where you can be reached

during the day on all correspondence with HUD. The letter

should state that all or part of the debt is not past due or

not legally enforceable and that you intend to present

evidence. Examples of reasons why a debt is not past due or

legally enforceable are that the debt has been paid in full, or

the debt has been discharged in bankruptcy. You may submit the

evidence, along with your letter requesting review, but in any

event, the evidence must be submitted to the HUD Board of

Contract Appeals within 65 calendar days after the date of this

notice.

IF YOU HAVE FILED FOR BANKRUPTCY AND AN AUTOMATIC STAY IS

IN EFFECT, YOU MAY NOT BE SUBJECT TO AN OFFSET PROVIDED YOU

NOTIFY THE BOARD IN WRITING OF THE BANKRUPTCY WITHIN 65 DAYS OF

THE DATE OF THIS NOTICE.

After examining the evidence, the reviewing official will

issue an opinion, a copy of which will be sent to you. If the

decision is in HUD\'s favor, HUD will refer your debt to the

IRS. If the decision is in your favor, no referral will be

made and the case will be closed. Any petition for a review

will stay collection proceedings. However, failure to submit

evidence within 65 calendar days after the date of this notice

will result in an automatic referral of the debt to the IRS

without further action by the HUD Board Of Contract Appeals.

Any money HUD recovers by offset will be paid first toward any

special charges, then to interest and finally to principal. If

you owe more than one debt, the offset will be paid first

toward the debt that became due first.

You have a right to inspect and copy any Departmental

records relating to this debt. Any such request to inspect or

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1900.25 REV-3

CHG-1

Appendix 18

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copy records must be received within 25 days after the date of

this letter by me at the following address:

Office of Finance and Accounting

Department of Housing and Urban Development

Room 2206

451 7th Street, SW

Washington, D.C. 20410

You will be informed as to where and when inspections and

copying can be done after the Department receives your

request.

If you will be filing a joint tax return, you should

contact the IRS before filing to determine the steps to take to

protect the share of the refund which may be payable to your

non-obligated spouse.

The spouse who does not owe the debt may receive his or

her portion of the joint refund by filing a Form 8379, Injured

Spouse Allocation, and Form 1040X, Amended Federal Income Tax

Return. These forms should be attached to the top of the Form

1040 or 1040A when you file. Your spouse should write \"Injured

Spouse\" at the top of the Form 1040X.

Any false statements or misrepresentations you make may

subject you to disciplinary procedures and/or civil or criminal

penalties under the applicable statutory authority.

Any amounts paid on or deducted for the debt that are

later waived or found not owed to the United States will be

promptly refunded.

The above action is being taken pursuant to the Deficit

Reduction Act, 31 USC 3720A.

I urge you to contact this office immediately, at the

above address, to make arrangements to bring your account

up-to-date. Please refer any questions regarding this matter to

Name & Title , at (202) Phone Number .

Sincerely yours,

Signed

Name

Title

Office

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1900.25 REV-3

CHG-1

Appendix 18

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NOTICE OF DISCLOSURE OF DEBT TO CONSUMER

REPORTING AGENCIES

EXAMPLE

Ms. June Debtor

123 Any Street

Somewhere, USA 00000-0000

Dear Ms. Debtor:

SUBJECT: Notice of Disclosure of Debt to Consumer Reporting

Agencies

HUD Claim Number. - Number

Date Of the Debt. - Date

You have not satisfied your debt to the Department of

Housing and Urban Development (HUD) which arose from

explanation . The current amount that is due is \$ amount .

HUD has reviewed this debt and determined that the debt is

valid and overdue.

HUD is authorized by Federal law (Section 3711(f) of Title

3, United States Code and Section 17.76 of Title 24, Code of

Federal Regulations) to report valid, overdue debts to consumer

reporting agencies (credit bureaus).

This letter is official notification that your debt is

overdue, and you have 65 days from the date of this notice to

make a written repayment agreement or to otherwise satisfy your

debt. Otherwise, HUD will report your debt and the fact that

you are responsible for the debt to national consumer reporting

agencies and a collection agency. Interest at the rate of

amount percent per annum and a 6 percent per annum penalty

will accrue from the date of the debt. An administrative

charge will be added once your debt is referred to a collection

agency.

Other information to be reported includes your name,

address, and social security number; the program under which

you incurred the debt; the balance to be repaid on the debt;

and the status of any repayment plan.

HUD will update its reports periodically to reflect

important changes in the status of your account.

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1900.25 REV-3

CHG-1

Appendix 18

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If you would like further information about your debt, if

you wish to dispute any information in HUD\'s records concerning

your debt, or if you wish a review or appeal with respect to

your debt, you must send a letter including a copy of this

notice within 65 days from the date of this notice to:

Mr. DCO Name

Departmental Claims Officer

Department of Housing and Urban Development

451 Seventh Street, SW, Room 2206

Washington, DC 20410

Please include on all correspondence the HUD claim number

referenced at the top of this letter and a telephone number

where you can be reached during the day.

Should you have any questions regarding this matter, call

Name Title at (202) Phone Number .

Sincerely yours,

Signed

(Name

Title

Offices

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