NOTES TO THE FINANCIAL STATEMENTS 86

Note 3. Accounts Receivable, Net

Accounts Receivable, Net as of September 30, 2021, and 2020

(In billions of dollars) 2021 2020

Taxes receivable:

Taxes receivable, gross ................................................................................................ 507.8 ................................ 441.9 ...............

Allowance for uncollectible amounts ................................................................................................ (196.6) (198.7) .............................

Taxes receivable, net................................................................................................ 311.2................................ 243.2 ...................

Other accounts receivable:

Other accounts receivable, gross ................................................................................................ 140.7 113.0 .................................

Allowance for uncollectible amounts ................................................................................................ (50.9) (35.0) .............................

Other accounts receivable, net ................................................................................................ 89.8 ................................ 78.0 .....

Total accounts receivable, net ................................................................................................ 401.0 ................................ 321.2 ...

Taxes receivable is listed first above due to being the significant portion of total accounts receivable, and the rest are

referred to as other accounts receivable. Other accounts receivable, gross includes related interest receivable of $3.0 billion

and $2.8 billion as of September 30, 2021, and 2020, respectively.

Treasury comprises approximately 76.0 percent of the government’s reported accounts receivable, net, as of September

30, 2021. Treasury accounts for nearly all the reported taxes receivable, which consist of unpaid assessments due from

taxpayers, unpaid taxes related to IRC section 965, and deferred payments resulting from the CARES Act. Examples of

unpaid assessments are the filing of a tax return without sufficient payment or a court ruling in favor of the IRS. Section

965(h) of the IRC requires taxpayers who are shareholders of certain specified foreign corporations to pay a transition tax on

foreign earnings as if those earnings had been repatriated to the U.S. IRC 965(h) allows taxpayers to elect to pay their tax on

an eight-year installment schedule. Pursuant to the CARES Act, employers can defer payment, without penalty, of their

portions of the Social Security segment of FICA and the employer’s and employee representative’s share of the Railroad

Retirement Tax. Treasury experienced a year to year increase of $67.0 billion principally due to the two-year payment

deferral of FICA Social Security taxes.

Other accounts receivable, gross increased significantly year to year, primarily as a result of DOL’s $18.6 billion

increase in benefit overpayments from programs related to COVID-19. Another substantial factor in the overall change was a

$7.0 billion increase in HHS receivables primarily due to Medicare.

The following entities are the main contributors to the government’s reported accounts receivable, net as of September

30, 2021. Refer to each entity’s financial statements for additional information:

• Treasury • DOD • TVA

• HHS • USDA • FDIC

• DHS • VA • HUD

• SSA • PBGC • USPS

• DOL • DOE • NCUA

• DOI • OPM • FCC