Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Proposed Rules 42439

program to include an inspection method for

any new or affected SSI, and to include the

compliance times for initial and repetitive

accomplishment of this inspection. For

purposes of this section, an SSI is ‘‘affected’’

if it has been altered or repaired, or if the

loads acting on the SSI have been increased

or redistributed. Following accomplishment

of the revision and within the compliance

times established, perform an inspection to

detect cracks in the structure affected by any

design change or repair, in accordance with

the new inspection method. The new

inspection method and the compliance times

shall be approved by the Manager, Seattle

ACO.

Note 6: Notwithstanding the provisions of

paragraphs 5.1.17 and 5.1.18 of the General

Instructions of Revision D, which would

permit deletions of modified, altered, or

repaired structure from the SIP, the

inspection of SSI’s that are modified, altered,

or repaired shall be done in accordance with

a method approved by the Manager, Seattle

ACO.

(g) Before any airplane that is subject to

this AD and that has exceeded the applicable

compliance times specified in paragraph (c)

of this AD can be added to an air carrier’s

operations specifications, a program for the

accomplishment of the inspections required

by this AD must be established in accordance

with paragraph (g)(1) or (g)(2) of this AD, as

applicable.

(1) For airplanes that have been inspected

in accordance with this AD, the inspection of

each SSI must be accomplished by the new

operator in accordance with the previous

operator’s schedule and inspection method,

or the new operator’s schedule and

inspection method, whichever would result

in the earlier accomplishment date for that

SSI inspection. The compliance time for

accomplishment of this inspection must be

measured from the last inspection

accomplished by the previous operator. After

each inspection has been performed once,

each subsequent inspection must be

performed in accordance with the new

operator’s schedule and inspection method.

(2) For airplanes that have not been

inspected in accordance with this AD, the

inspection of each SSI required by this AD

must be accomplished either prior to adding

the airplane to the air carrier’s operations

specification, or in accordance with a

schedule and an inspection method approved

by the Manager, Seattle ACO. After each

inspection has been performed once, each

subsequent inspection must be performed in

accordance with the new operator’s schedule.

(h)(1) An alternative method of compliance

or adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Seattle

ACO. Operators shall submit their requests

through an appropriate FAA Principal

Maintenance Inspector, who may add

comments and then send it to the Manager,

Seattle ACO.

Note 7: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Seattle ACO.

(2) Alternative methods of compliance,

approved previously in accordance with AD

91–14–20, amendment 39–7061, are not

considered to be approved as alternative

methods of compliance with this AD.

(i) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Issued in Renton, Washington, on July 31,

1997.

Darrell M. Pederson,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 97–20732 Filed 8–6–97; 8:45 am]

BILLING CODE 4910–13–O

SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 422

RIN 0960–AE09

Federal Old-Age, Survivors, and

Disability Insurance; Disclosure of

Information to Consumer Reporting

Agencies and Overpayment Recovery

Through Administrative Offset Against

Federal Payments

AGENCY: Social Security Administration.

ACTION: Proposed rules.

SUMMARY: We propose to make several

revisions to our regulations dealing with

debt collection. First, we propose to

modify the regulations dealing with the

recovery of benefit overpayments under

title II of the Social Security Act (the

Act) to reflect statutory authority for the

Social Security Administration (SSA) to

selectively refer information to

consumer reporting agencies and to

recover title II overpayments through

administrative offset by the Department

of the Treasury against other Federal

payments to which the overpaid

individual may be entitled. These

collection practices would be limited to

overpayments made to a person after he

or she attained age 18 that are

determined to be otherwise

unrecoverable under section 204 of the

Act after the individual ceases to be a

beneficiary under title II of the Act.

Second, as an independent agency in

the executive branch of the U.S.

Government, we propose to establish a

new subpart D in part 422 of title 20 of

the Code of Federal Regulations which

will explain our rules on debt collection

procedures for both administrative debts

and for title II program overpayments

determined to be otherwise

unrecoverable under section 204 of the

Act. These proposed rules for the new

subpart D would address the reporting

of delinquent debts to consumer and

other credit reporting agencies and the

use of administrative offset through the

Department of the Treasury. Third, we

propose to revise our rules on the

recovery of title II program

overpayments through the use of the

Federal income tax refund offset (TRO)

provisions to reflect that, beginning

January 1, 1998, the Department of the

Treasury, rather than the Internal

Revenue Service (IRS), will administer

the TRO program, and to reflect other

changes in policies and procedures

applied by the IRS and the Department

of the Treasury in the TRO program.

DATES: To be sure your comments are

considered, we must receive them no

later than October 6, 1997.

ADDRESSES: Comments should be

submitted in writing to the

Commissioner of Social Security, P.O.

Box 1585, Baltimore, Maryland 21235,

sent by telefax to (410) 966–2830, sent

by e-mail to ‘‘regulations@ssa.gov,’’ or

delivered to the Division of Regulations

and Rulings, Social Security

Administration, 3–B–1 Operations

Building, 6401 Security Boulevard,

Baltimore, MD 21235, between 8:00 a.m.

and 4:30 p.m. on regular business days.

Comments may be inspected during

these same hours by making

arrangements with the contact person

shown below.

FOR FURTHER INFORMATION CONTACT:

Robert J. Augustine, Legal Assistant,

Division of Regulations and Rulings,

Social Security Administration, 6401

Security Boulevard, Baltimore, MD

21235, (410) 966–5121. For information

on eligibility or claiming benefits, call

our national toll-free number, 1–800–

772–1213.

SUPPLEMENTARY INFORMATION: Section

204 of the Act prescribes the methods

SSA may use to recover Social Security

benefits erroneously paid under title II

of the Act (title II program

overpayments), as distinguished from

the methods SSA may use to collect

other debts owed the agency

(administrative debts) that are

recoverable under other statutory

authority. Until recently, SSA was

authorized to recover title II program

overpayments only through adjustment

of future benefits payable to the

overpaid individual or to others on the

earnings record on which the

overpayment was made, by direct

recovery from the overpaid person (or

the overpaid person’s estate, if

deceased), or by offset against Federal

income tax refunds due from the

Department of the Treasury.

Amendments to section 204 of the Act

by section 5 of Pub. L. 103–387 (1994)

and section 31001(z)(2) of Pub. L. 104–

134 (1996) permit SSA to use several

debt collection procedures that have
42440 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Proposed Rules

been available to Federal agencies

(including SSA) by statute since 1982,

but that SSA had been precluded from

using to recover title II program

overpayments. Among other things,

these procedures include reporting

delinquent debts to consumer and other

credit reporting agencies and recovering

debts by administrative offset against

other Federal payments to which the

debtor is entitled. Under section 204(f)

of the Act (42 U.S.C. 404(f)), these

additional debt collection procedures

may be used to recover title II program

overpayments only if the overpayment

was made to a person after he or she

attained age 18 and the overpayment

has been determined to be otherwise

unrecoverable under section 204 of the

Act after the overpaid person is no

longer entitled to benefits under title II

of the Act.

Before we can refer information to

consumer or other credit reporting

agencies or refer a debt to the

Department of the Treasury for

administrative offset (either title II

program overpayments or

administrative debts), we must (1) send

the debtor written notice (or, in the case

of an individual for whom we do not

have a current address, take reasonable

action to locate and send written notice)

describing the amount and nature of the

debt, the action that we propose to take,

and the debtor’s rights to an explanation

of the debt, to request us to review the

debt, to dispute the accuracy of the

information about the debt, and to

inspect or copy our records about the

debt; and (2) give the debtor at least 60

calendar days to present evidence that

all or part of the debt is not past-due or

not legally enforceable, or enter into a

written agreement to pay the debt.

Prior to March 31, 1995, SSA was an

operating division of the Department of

Health and Human Services (DHHS).

SSA relied on the DHHS rules at 45 CFR

part 30 for debt collection (other than

collection of title II program

overpayments). The Social Security

Independence and Program

Improvements Act of 1994 (SSIPIA),

Pub. L. 103–296, established SSA as an

independent agency in the executive

branch of the Federal government

effective March 31, 1995, and vested

general regulatory authority in the

Commissioner of Social Security (the

Commissioner). Under section 106(b) of

the SSIPIA, DHHS regulations in effect

immediately before March 31, 1995,

which relate to functions now vested in

the Commissioner by reason of SSA’s

independence, continue to apply to SSA

until such time as they are modified,

suspended, terminated, or repealed by

the Commissioner. In this rule, we

propose to establish a new subpart D in

part 422 of our regulations which will

set forth the SSA rules on debt

collection for title II program

overpayments that have been

determined to be otherwise

unrecoverable under section 204 of the

Act and for administrative debts. At this

time, we propose to set forth in subpart

D our rules on referral to consumer and

other credit reporting agencies and

referral to the Department of the

Treasury for administrative offset. In the

future, as we make the necessary

systems changes and develop policies

and procedures to enable us to use

additional debt collection tools for

recovery of title II program

overpayments, we will modify subpart

D of part 422. In the meantime, we will

continue to rely on the definitions and

collection methods contained in the

DHHS regulations in 45 CFR part 30 to

recover administrative debts owed the

Federal government.

We are also proposing revisions to our

existing rules on the recovery of title II

program overpayments through the

withholding of amounts due to former

beneficiaries as Federal income tax

refunds to reflect the fact that, beginning

January 1, 1998, the Federal income tax

refund offset (TRO) program will be

administered by the Department of the

Treasury, Financial Management

Service (FMS), instead of the IRS. The

policy requiring agencies to delay

referral of debts for TRO for three

months after the right to collect first

accrued has been rescinded. Also, the

TRO program, as administered by FMS,

will be ongoing rather than cyclical so

that it will no longer be necessary for

agencies to recertify amounts for

collection by TRO each year. Instead,

the case will remain with FMS for offset

in succeeding years.

Explanation of Changes to Regulations

We propose to revise our title II rules

on TRO at §§ 404.520–404.526 to reflect

the fact that, beginning January 1, 1998,

we will be referring title II program

overpayments for TRO to the

Department of the Treasury, rather than

to IRS. Section 404.520 would be

revised to delete the requirement that a

debt may not be referred for TRO before

the expiration of three months after our

right to collect first accrued. Section

404.526 would also be revised by

deleting reference to the need to

recertify an overpayment for TRO in

cases where a tax refund is insufficient

to recover an overpayment in a given

year, reflecting the fact that the case will

now remain with the Department of the

Treasury for offset in succeeding years

without need for recertification.

We propose to add a new § 404.527 to

our regulations to explain that we will

use the additional debt collection

methods authorized by section 204(f) of

the Act to recover title II program

overpayments if the overpayment

occurred after the individual attained

age 18, and the overpayment has been

determined to be otherwise

unrecoverable under section 204 of the

Act after the individual is no longer

entitled to benefits under title II of the

Act. Proposed § 404.527 also contains

the criteria under which we determine

that an overpayment is ‘‘otherwise

unrecoverable under section 204 of the

Act.’’ An overpayment debt will be

determined to be unrecoverable when

all of the following conditions are met:

we completed our billing sequence or

collection activity has been suspended

or terminated in accordance with the

Federal Claims Collection Standards in

4 CFR 104.2 and 104.3; there is no

installment payment agreement or the

overpaid person has failed to pay in

accordance with such an agreement for

two consecutive months; we cannot

collect the overpayment by adjusting

benefits payable to individuals other

than the overpaid person. For purposes

of proposed § 404.527, an overpayment

will be deemed to be unrecoverable by

adjustment of benefits payable to an

individual who lived in a separate

household from the overpaid person

when the overpayment occurred and

did not receive the overpayment.

Adjustment of benefits is waived when

waiver is requested under these

circumstances. See 20 CFR 404.509.

We propose to add to § 404.903 new

paragraphs (t) and (u) to include in the

list of administrative actions that are not

initial determinations our

determinations whether we will refer

information about an overpayment debt

to consumer reporting agencies and

whether we will refer the debt to the

Department of the Treasury for offset

against other Federal payments due the

overpaid person. Administrative actions

that are not initial determinations may

be reviewed by us, but they are not

subject to the administrative review

process provided by subpart J of our

regulations at 20 CFR part 404, and they

are not subject to judicial review.

We also propose to create a new

subpart D to part 422 of our regulations

to contain our rules on certain debt

collection practices and procedures. In

§ 422.301, we would specify that the

debt collection tools in subpart D may

be used to recover both title II program

overpayments the Commissioner has

determined to be unrecoverable under

section 204 of the Act and overdue

administrative debts owed the agency.
Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Proposed Rules 42441

In § 422.305, we explain that we will

refer all overdue title II program debts

over $25 to consumer reporting

agencies. We describe the information

we must include in the notice we send

to the debtor before we report the debt

to a consumer reporting agency. We also

explain in this section that, in cases

where an individual disputes the

information we propose to refer to a

consumer reporting agency within 60

calendar days of our notice of our

proposed referral, we will not send the

information until we determine the

correct information.

In § 422.306, we explain that we will

refer all overdue administrative debts

over $25 to credit reporting agencies.

We also describe the information we

must include in the notice we send to

the debtor before we report the debt to

a credit reporting agency. Examples of

administrative debts are overpayments

of employees’ pay and allowances, debts

for civil money penalties imposed under

section 1140(b) of the Act, debts for

unpaid fees for reimbursable services by

SSA (e.g., disclosure of information),

contractor debts, etc.

In § 422.310, we explain our rules

relating to referring debts to the

Department of the Treasury for

administrative offset. Specifically, we

explain that we will refer overdue debts

over $25 to the Department of the

Treasury for offset against any Federal

payments due the debtor. We also

describe the information we must

include in the notice we send to the

debtor before referring the debt to the

Department of the Treasury for

administrative offset.

In § 422.315, we explain that a debtor

has the right to inspect or copy our

records related to a debt before we refer

the debt to a consumer or credit

reporting agency or to the Department of

the Treasury for administrative offset,

and the procedures for exercising that

right.

In § 422.317, we explain that a debtor

has the right to have us review the debt.

To exercise this right, the debtor must

notify us within 60 calendar days from

the date of our notice of proposed

referral and give us evidence that he or

she does not owe all or part of the debt,

or we do not have the right to collect it.

After our review of the evidence, we

explain that we will issue written

findings of our review. If the debtor

requests review and submits evidence

within the 60-day period, we will not

refer the debt to consumer or credit

reporting agencies or to the Department

of the Treasury unless and until we

have completed our review and sent our

findings to the debtor that all or part of

the debt is overdue and legally

enforceable.

Electronic Version

The electronic file of this document is

available on the Federal Bulletin Board

(FBB) at 9:00 a.m. on the date of

publication in the Federal Register. To

download the file, modem dial (202)

512–1387. The FBB instructions will

explain how to download the file and

the fee. The file is in WordPerfect and

will remain on the FBB during the

comment period.

Regulatory Procedures

Executive Order 12866

We have consulted with the Office of

Management and Budget (OMB) and

determined that these proposed rules do

not meet the criteria for a significant

regulatory action under Executive Order

12866. Thus, they were not subject to

OMB review.

Regulatory Flexibility Act

We certify that these proposed

regulations will not have a significant

impact on a substantial number of small

entities. Therefore, a regulatory

flexibility analysis, as provided in the

Regulatory Flexibility Act, as amended,

is not required.

Paperwork Reduction Act

These proposed regulations will

impose no new reporting or

recordkeeping requirements requiring

OMB clearance.

(Catalog of Federal Domestic Assistance

Programs No. 96.001, Social Security—

Disability Insurance; 96.002 Social

Security—Retirement Insurance; 96.003

Social Security—Special Benefits for Persons

Aged 72 and Over; 96.004, Social Security—

Survivors Insurance)

List of Subjects

20 CFR Part 404

Administrative practice and

procedure, Blind, Death benefits,

Disability benefits, Old-Age, Survivors

and Disability Insurance, Reporting and

recordkeeping requirements, Social

security.

20 CFR Part 422

Administrative practice and

procedure, Organization and functions

(Government agencies), Social security.

Dated: July 28, 1997.

John J. Callahan,

Acting Commissioner of Social Security.

For the reasons set out in the

preamble, we propose to amend

subparts F and J of part 404 of chapter

III of title 20 of the Code of Federal

Regulations and to add a new subpart D

to part 422 of chapter III of title 20 of

the Code of Federal Regulations as

follows:

1. The authority citation for subpart F

of Part 404 is revised to read as follows:

Authority: Secs. 204, 205(a), and 702(a)(5)

of the Social Security Act (42 U.S.C. 404,

405(a), and 902(a)); 31 U.S.C. 3720A.

2. Section 404.520 is revised to read

as follows:

§ 404.520 Referral of overpayments to the

Department of the Treasury for tax refund

offset—General.

(a) The standards we will apply and

the procedures we will follow before

requesting the Department of the

Treasury to offset income tax refunds

due taxpayers who have an outstanding

overpayment are set forth in §§ 404.520

through 404.526. These standards and

procedures are authorized by 31 U.S.C.

3720A and are implemented through

Department of the Treasury regulations

at 26 CFR 301.6402–6.

(b) We will use the Department of the

Treasury tax refund offset procedure to

collect overpayments that are certain in

amount, past due and legally

enforceable, and eligible for tax refund

offset under regulations issued by the

Department of the Treasury. We will use

these procedures to collect

overpayments only from individuals

who are not currently entitled to

monthly Social Security benefits under

title II of the Act. We will refer an

overpayment to the Department of the

Treasury for offset against tax refunds

no later than 10 years after our right to

collect the overpayment first accrued.

3. Section 404.521 is amended by

revising the introductory text to read as

follows:

§ 404.521 Notice to overpaid individual.

A request for reduction of a Federal

income tax refund will be made only

after we determine that an amount is

owed and past due and send the

overpaid individual written notice. Our

notice of intent to collect an

overpayment through tax refund offset

will state:

* * * * *

4. Section 404.526 is revised to read

as follows:

§ 404.526 Tax refund insufficient to cover

amount of overpayment.

If a tax refund for a given taxable year

is insufficient to recover an

overpayment completely, the case will

remain with the Department of the

Treasury for offset, assuming that all

criteria for offset continue to be met.

5. Section 404.527 is added to read as

follows:
42442 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Proposed Rules

§ 404.527 Additional methods for recovery

of title II benefit overpayments.

(a) General. In addition to the

methods specified in § 404.502 and

§ 404.520, an overpayment under title II

of the Act is also subject to recovery

under the rules in subpart D of part 422,

provided:

(1) The overpayment occurred after

the individual has attained age 18;

(2) The overpaid individual is no

longer entitled to benefits under title II

of the Act; and

(3) Pursuant to paragraph (b) of this

section, we have determined that the

overpayment is otherwise unrecoverable

under section 204 of the Act.

(b) When an overpayment is

considered to be otherwise

unrecoverable. An overpayment under

title II of the Act is considered to be

otherwise unrecoverable under section

204 of the Act if all of the following

conditions are met:

(1) Our billing system sequence has

been completed (i.e., we have sent the

individual an initial notice of the

overpayment, a reminder notice, and a

past-due notice) or collection activity

has been suspended or terminated in

accordance with the Federal Claims

Collection Standards in 4 CFR 104.2 or

104.3.

(2) We have not entered into an

installment payment arrangement with

the overpaid individual or, if we have

entered into such an arrangement, the

overpaid individual has failed to make

any payment for two consecutive

months.

(3) The overpaid individual has not

requested waiver pursuant to § 404.506

or § 404.522 or, after a review conducted

pursuant to those sections, we have

determined that we will not waive

collection of the overpayment.

(4) The overpaid individual has not

requested reconsideration of the initial

overpayment determination pursuant to

§§ 404.907 and 404.409 or, after a

review conducted pursuant to § 404.913,

we have affirmed, in whole or in part,

the initial overpayment determination.

(5) The overpayment cannot be

recovered pursuant to § 404.502 by

adjustment of benefits payable to any

individual other than the overpaid

individual. For purposes of this

paragraph, an overpayment will be

deemed to be unrecoverable from any

individual who was living in a separate

household from the overpaid person at

the time of the overpayment and did not

receive the overpayment.

6. In addition to the amendments set

forth above, remove the acronym ‘‘IRS’’

and add, in its place, the words

‘‘Department of the Treasury’’ in the

following places:

(a) Section 404.521(b);

(b) Section 404.522(b);

(c) Section 404.523(a) and (c); and

(d) Section 404.525.

7. The authority citation for subpart J

of Part 404 is revised to read as follows:

Authority: Secs. 201(j), 204(f), 205(a), (b),

(d)–(h), and (j), 221, 225, and 702(a)(5) of the

Social Security Act (42 U.S.C. 401(j), 404(f),

405(a), (b), (d)–(h), and (j), 421, 425, and

902(a)(5)); 31 U.S.C. 3720A; sec. 5, Pub. L.

97–455, 96 Stat. 2500 (42 U.S.C. 405 note);

secs. 5, 6(c)–(e), and 15, Pub. L. 98–460, 98

Stat. 1802 (42 U.S.C. 421 note).

8. Section 404.903 is amended by

deleting the word ‘‘and’’ at the end of

paragraph (r), replacing the period at the

end of paragraph (s) with a semicolon,

and adding paragraphs (t) and (u) to

read as follows:

§ 404.903 Administrative actions that are

not initial determinations.

* * * * *

(t) Determining whether we will refer

information about your overpayment to

a consumer reporting agency (see

§ 404.527 and § 422.305 of this chapter);

and

(u) Determining whether we will refer

your overpayment to the Department of

the Treasury for collection by offset

against Federal payments due you (see

§ 404.527 and § 422.310 of this chapter).

PART 422—ORGANIZATION AND

PROCEDURES

10. Subpart D is added to read as

follows:

Subpart D—Claims Collection

Sec.

422.301 Material included in this subpart.

422.305 Report of overdue title II program

overpayment debts to consumer

reporting agencies.

422.306 Report of overdue administrative

debts to credit reporting agencies.

422.310 Collection of overdue debts by

administrative offset.

422.315 Review of our records related to the

debt.

422.317 Review of the debt.

Subpart D—Claims Collection

Authority: Secs. 204(f), 205(a), and

702(a)(5) of the Social Security Act (42 U.S.C.

404(f), 405(a), and 902(a)(5)); 31 U.S.C.

3711(e); 31 U.S.C. 3716.

§ 422.301 Material included in this subpart.

This subpart describes the procedures

relating to collection of:

(a) Overdue administrative debts, and

(b) Overdue title II program

overpayments described in § 404.527 of

this chapter.

§ 422.305 Report of overdue title II

program overpayment debts to consumer

reporting agencies.

(a) Debts we will report. We will

report to consumer reporting agencies

all overdue title II program overpayment

debts over $25.

(b) Notice to debtor. Before we report

any such debt to a consumer reporting

agency, we will send the debtor written

notice of the following:

(1) We have determined that payment

of the debt is overdue;

(2) We will refer the debt to a

consumer reporting agency within not

less than 60 calendar days after the date

of the notice unless, within that 60-day

period, the debtor pays the full amount

of the debt or takes either of the actions

described in paragraphs (b)(6) or (b)(7)

of this section;

(3) The specific information we will

provide to the consumer reporting

agency, including information that

identifies the debtor (e.g., name,

address, and social security number)

and the amount, status, and history of

the debt;

(4) The debtor has the right to a

complete explanation of the debt;

(5) The debtor may dispute the

accuracy of the information to be

provided to the consumer reporting

agency;

(6) The debtor may request a review

of the debt by giving us evidence

showing that he or she does not owe all

or part of the amount of the debt or that

we do not have the right to collect it;

and

(7) The debtor may request an

installment payment plan.

(c) Disputing the information that we

would send to consumer reporting

agencies. If a debtor believes that the

information we propose to send to

consumer reporting agencies is

incorrect, the debtor may ask us to

correct such information. If, within 60

calendar days from the date of our

notice described in paragraph (b) of this

section, the debtor notifies us that any

information to be sent to consumer

reporting agencies is incorrect, we will

not send the information to consumer

reporting agencies until we determine

the correct information.

§ 422.306 Report of overdue administrative

debts to credit reporting agencies.

(a) Debts we will report. We will

report to credit reporting agencies all

overdue administrative debts over $25.

Some examples of administrative debts

are as follows: overpayments of pay and

allowances paid to employees, debts for

civil monetary penalties imposed under

section 1140(b) of the Act, debts for

unpaid fees for reimbursable services
Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Proposed Rules 42443

performed by SSA (e.g., disclosures of

information), and contractor debts.

(b) Notice to debtor. Before we report

any administrative debt to a credit

reporting agency, we will send the

debtor written notice of the following: (1) We have determined that payment

of the debt is overdue;

(2) We will refer the debt to a credit

reporting agency within not less than 60

calendar days after the date of the notice

unless, within that 60-day period, the

debtor pays the full amount of the debt

or takes either of the actions described

in paragraphs (b)(6) or (b)(7) of this

section;

(3) The specific information we will

provide to the credit reporting agency,

including information that identifies the

debtor (e.g., name, address, social

security number, and employer

identification number) and the amount,

status, and history of the debt. (4) the debtor has the right to a

complete explanation of the debt; (5) the debtor may dispute the

accuracy of the information to be

provided to the credit reporting agency; (6) the debtor may request a review of

the debt by giving us evidence showing

that he or she does not owe all or part

of the amount of the debt or that we do

not have the right to collect it; and (7) the debtor may request an

installment payment plan.

§ 422.310 Collection of overdue debts by

administrative offset.

(a) Referral to the Department of the

Treasury for offset. We will recover

overdue debts by offsetting Federal

payments due the debtor through the

Treasury Offset Program (TOP). TOP is

a Governmentwide delinquent debt

matching and payment offset process

operated by the Department of the

Treasury, whereby debts owed to the

Federal Government are collected by

offsetting them against Federal

payments owed the debtor. (b) Debts we will refer. We will refer

for administrative offset all overdue

debts over $25.

(c) Notice to debtor. Before we refer

any debt for collection by administrative

offset, we will send the debtor written

notice that:

(1) We have determined that payment

of the debt is overdue;

(2) We will refer the debt for

administrative offset within not less

than 60 calendar days after the date of

the notice unless, within that 60-day

period, the debtor pays the full amount

of the debt or takes either of the actions

described in paragraphs (c)(4) or (c)(5)

of this section;

(3) The debtor may inspect or copy

our records relating to the debt; (4) The debtor may request a review

of the debt by giving us evidence

showing that the debtor does not owe all

or part of the amount of the debt or that

we do not have the right to collect it;

and

(5) The debtor may request an

installment payment plan.

§ 422.315 Review of our records related to

the debt.

(a) Notification by the debtor. The

debtor may request to inspect or copy

our records related to the debt.

(b) Our response. In response to a

request from the debtor described in

paragraph (a) of this section, we will

notify the debtor of the location and

time at which the debtor may inspect or

copy our records related to the debt. We

may also, at our discretion, mail to the

debtor copies of the records relating to

the debt.

§ 422.317 Review of the debt.

(a) Notification and presentation of

evidence by the debtor. A debtor who

receives a notice described in

§§ 422.305(b), 422.306(b), or 422.310(c)

has a right to have us review the debt.

To exercise this right, within 60

calendar days from the date of our

notice, the debtor must notify us and

give us evidence that he or she does not

owe all or part of the debt or that we do

not have the right to collect it. If the

debtor does not notify us and give us

this evidence within the 60 calendarday period, we may take the action

described in our notice.

(b) Review of the evidence. If the

debtor notifies us and presents evidence

within the 60 calendar day period

described in paragraph (a) of this

section, we will not take the action

described in our notice unless and until

we consider all of the evidence and

send the debtor our findings that all or

part of the debt is overdue and legally

enforceable.

(c) Findings by SSA. Following our

review of all of the evidence presented,

we will issue written findings,

including the supporting rationale for

the findings. Issuance of these findings

will be the final Agency action on the

debtor’s request for review. If we find

that the debt is not overdue or we do not

have the right to collect it, we will not

send information about the debt to

consumer or other credit reporting

agencies or refer the debt to the

Department of the Treasury for

administrative offset.

[FR Doc. 97–20742 Filed 8–6–97; 8:45 am]

BILLING CODE 4190–29–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

31 CFR Part 1

Privacy Act of 1974, Proposed Rule

Exempting System of Records From

Certain Provisions

AGENCY: Internal Revenue Service,

Treasury.

ACTION: Proposed rule.

SUMMARY: In accordance with the

requirements of the Privacy Act of 1974,

as amended, 5 U.S.C. 552a, the

Department of the Treasury gives notice

of a proposed rule to exempt a new

system of records entitled, ‘‘Customer

Feedback System Treasury/IRS 00.003,’’

from certain provisions of the Privacy

Act. The exemption is intended to

comply with legal prohibitions against

the disclosure of certain kinds of

information and to protect certain

information on individuals maintained

in this system of records.

DATES: Comments must be received no

later than September 8, 1997.

ADDRESSES: Please submit comments to

the National Director, Governmental

Liaison and Disclosure Office, Internal

Revenue Service, 1111 Constitution

Avenue, NW, Washington DC. 20224.

Comments will be made available for

inspection and copying at the Freedom

of Information Reading Room upon

request.

FOR FURTHER INFORMATION CONTACT:

Michael Sincavage, 6103/Privacy

Operations, Governmental Liaison and

Disclosure, Internal Revenue Service at

(202) 622–6240.

SUPPLEMENTARY INFORMATION: Pursuant

to the Privacy Act of 1974, the

Department of the Treasury is

publishing separately the notice of a

new Treasury/IRS system of records to

be maintained by the IRS. The

Department of the Treasury is hereby

giving notice of a proposed rule to

exempt the Customer Feedback System

of records from certain provisions of the

Privacy Act pursuant to 5 U.S.C. 552a

(k)(4) and the authority vested in the

Commissioner of Internal Revenue by 31

CFR 1.23(c).

Under 5 U.S.C. 552a, the head of any

agency may promulgate rules to exempt

any system of records within the agency

from certain provisions of the Privacy

Act of 1974, if the system is required by

statute to be maintained and used solely

as statistical records.

The reason for exempting the abovenamed system of records is that

disclosure of statistical records

(including release of any accounting for

disclosure) would be of no benefit to a

particular individual since the records