Federal Register / Vol. 65, No. 192 / Tuesday, October 3, 2000 / Proposed Rules 58973

4. Section 416.570 is amended by

revising the third sentence to read as

follows:

§ 416.570 Adjustment-general rule.

* * * Absent a specific request from

the person from whom recovery is

sought, no overpayment made under

title II or XVIII of the Act will be

recovered by adjusting SSI benefits.

***

5. Section 416.572 is added to read as

follows:

§ 416.572 Are title II benefits subject to

adjustment to recover title XVI

overpayments?

(a) Definitions—(1) Cross-program

recovery. Cross-program recovery is the

process that we will use to collect title

XVI overpayments from benefits payable

to you in a month under title II of the

Social Security Act.

(2) Benefits payable in a month. For

purposes of this section, benefits

payable in a month means the amount

of title II benefits you would actually

receive in that month. It includes your

monthly benefit and any past due

benefits after any reductions or

deductions listed in § 404.401(a) and (b)

of this chapter.

Example: A person is entitled to monthly

title II benefits of $1000. The first benefit

payment the person would receive includes

past-due benefits of $1000. The amount of

benefits payable in that month for purposes

of cross-program recovery is $2000. The

monthly benefit payable for subsequent

months is $1000. If $200 would be deducted

from the person’s title II benefits in a later

month because of excess earnings as

described in §§ 404.415 and 404.416 of this

chapter, the benefit payable in that month for

purposes of cross-program recovery would be

$800.

(3) Not currently eligible for SSI cash

benefits. This means that a person is not

receiving any cash payment, including

State supplementary payments, under

any provision of title XVI of the Act or

under section 212(b) of Pub. L. 93–66

(42 U.S.C. 1382 note).

(b) When we may collect title XVI

overpayments using cross-program

recovery. (1) We may use cross-program

recovery to collect a title XVI

overpayment you owe if:

(i) You are not currently eligible for

SSI cash benefits, and

(ii) You are receiving title II benefits.

(2) We will not start cross-program

recovery if:

(i) You are refunding your title XVI

overpayment by regular monthly

installments, or

(ii) We are recovering a title II

overpayment by adjusting your title II

benefits under § 404.502 of this chapter.

(c) Notice you will receive. Before we

collect an overpayment from you using

cross-program recovery, we will send

you a written notice that tells you the

following information:

(1) We have determined that you owe

a specific overpayment balance that can

be collected by cross-program recovery;

(2) We will withhold a specific

amount from the title II benefits payable

to you in a month (see paragraph (e) of

this section);

(3) You may ask us to review this

determination that you still owe this

overpayment balance; and

(4) You may request that we withhold

a different amount (the notice will not

include this information if paragraph

(e)(2) of this section applies).

(d) When we will begin cross-program

recovery. We will begin collecting the

overpayment balance by cross-program

recovery no sooner than 30 calendar

days after the date of the notice

described in paragraph (c) of this

section.

(1) If within that 30-day period you

pay us the full overpayment balance

stated in the notice, we will not begin

cross-program recovery.

(2) If within that 30-day period you

ask us to review our determination that

you still owe us this overpayment

balance, we will not begin crossprogram recovery before we review the

matter and notify you of our decision in

writing.

(3) If within that 30-day period you

ask us to withhold a different amount

than the amount stated in the notice, we

will not begin cross-program recovery

until we determine the amount we will

withhold. This paragraph does not

apply when paragraph (e)(2) of this

section applies.

(e) Rate of withholding. (1) We will

collect the overpayment at the rate of 10

percent of the title II benefits payable to

you in any month, unless:

(i) You request and we approve a

different rate of withholding, or

(ii) You or your spouse willfully

misrepresented or concealed material

information in connection with the

overpayment.

(2) If you or your spouse willfully

misrepresented or concealed material

information in connection with the

overpayment, we will collect the

overpayment at the rate of 100 percent

of the title II benefits payable in any

month. We will not collect at a lesser

rate. (See § 416.571 for what we mean

by concealment of material

information.)

[FR Doc. 00–25184 Filed 10–2–00; 8:45 am]

BILLING CODE 4191–02–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–108522–00]

RIN 1545–AY25

Recognition of Gain on Certain

Transfers to Certain Foreign Trusts

and Estates; Correction

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Correction to notice of proposed

rulemaking.

SUMMARY: This document contains a

correction to a notice of proposed

rulemaking that was published in the

Federal Register on Monday, August 7,

2000 (65 FR 48198) relating to the

recognition of gain on certain transfers

to certain foreign trusts and estates.

FOR FURTHER INFORMATION CONTACT:

Karen A. Rennie Quarrie at (202) 622–

3880 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking

that is the subject of this correction is

under section 684 of the Internal

Revenue Code.

Need for Correction

As published, the notice of proposed

rulemaking contains errors that may

prove to be misleading and are in need

of clarification.

Correction of Publication

Accordingly, the publication of the

notice of proposed rulemaking (REG–

108522–00), that was the subject of FR

Doc. 00–19896, is corrected as follows:

§ 1.684–3 [Corrected]

On page 48202, column 1, § 1.684–

3(f), the first line of Example 1, the

language ‘‘Example 1. Transfer to owner

trust. In’’ is corrected to read ‘‘Example

1. Transfer to grantor trust. In’’.

Cynthia E. Grigsby,

Chief, Regulations Unit, Office of Special

Counsel (Modernization and Strategic

Planning).

[FR Doc. 00–25290 Filed 10–2–00; 8:45 am]

BILLING CODE 4830–01–P