federal register

46139

Friday

August 28, 1998

Part VII

Department of the

Treasury

Fiscal Service

31 CFR Part 285

Offset of Tax Refund Payments to Collect

Past-Due, Legally Enforceable Nontax

Debt; Final Rule
46140 Federal Register / Vol. 63, No. 167 / Friday, August 28, 1998 /Rules and Regulations

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 285

RIN 1510–AA62

Offset of Tax Refund Payments to

Collect Past-Due, Legally Enforceable

Nontax Debt

AGENCY: Financial Management Service,

Fiscal Service, Treasury.

ACTION: Final rule.

SUMMARY: This final rule adopts the

interim rule, published in the Federal

Register on June 25, 1997, concerning

the tax refund offset procedures

applicable to the collection of

delinquent nontax debt owed to Federal

agencies.

DATES: This rule is effective September

28, 1998. This rule applies to tax refund

payments payable after January 1, 1998.

FOR FURTHER INFORMATION CONTACT:

Gerry Isenberg, Financial Program

Specialist, at (202) 874–6660; Martin

Mills, Treasury Offset Program, at (202)

874–8700; Ellen Neubauer or Ronda

Kent, Senior Attorneys, at (202) 874–

6680. A copy of this final rule is being

made available for downloading from

the Financial Management Service web

site at the following address: http://

www.fms.treas.gov.

SUPPLEMENTARY INFORMATION:

Background

On June 25, 1997, the Financial

Management Service (FMS) published

in the Federal Register an interim rule

with request for comments concerning

the tax refund offset procedures

applicable to the collection of

delinquent nontax debt owed to Federal

agencies (62 FR 34175, June 25, 1997).

The closing date for the submission of

comments was July 25, 1997.

Since publication of the interim rule,

FMS and the Internal Revenue Service

have delayed the merger of the tax

refund offset program with the Treasury

Offset Program to January 1, 1999.

However, the procedural changes

affecting the prerequisites to

participation in the tax refund offset

program remain effective for all tax

refund payments payable after January

1, 1998. Therefore, the interim rule may

be adopted without changing the

effective date.

Comments on the Interim Rule

By the close of the comment period,

FMS received one comment on the

interim rule from one organization

commenting on behalf of a provider of

tax-related financial services and a

financial institution. The commenter

noted that the rule does not require

agencies to report debts to credit

bureaus before submitting them for

collection by tax refund offset. The

commenter suggested that the rule

should establish a time frame within

which an agency is required to report a

delinquent debt to a credit bureau.

This rule does not include credit

bureau reporting as a prerequisite for

participation, or as a requirement for

continued participation, in the tax

refund offset program. Section 31001(k)

of the Debt Collection Improvement Act

of 1996, Pub. L. 104–134, 110 Stat.

1321–358 (Apr. 26, 1996), codified at 31

U.S.C. 3711(e), mandates that agencies

report consumer debt to credit bureaus.

Therefore, it is not necessary to address

credit bureau reporting in the tax refund

offset program and no change has been

made to the final rule.

Adoption as Final Rule

Accordingly, the interim rule adding

31 CFR part 285 which was published

at 62 FR 34175 on June 25, 1997, is

adopted as a final rule without change.

Dated: August 21, 1998.

Richard L. Gregg,

Commissioner.

[FR Doc. 98–22939 Filed 8–27–98; 8:45 am]

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