Legal Authorities Quick Reference Charts

Quick Reference: Cross-Servicing Program

DEBT COLLECTION
TOOL/ACTION

DESCRIPTION

STATUTORY AUTHORITY

REGULATORY AUTHORITY

Mandatory Transfer of Servicing to Treasury

All debts >180 delinquent must be sent to FMS unless exempted

31 U.S.C. 3711(g)(1)Exit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.12
31 CFR 901.1(e)
I TFM 4-4000

Administrative
Wage Garnishment (AWG)

Garnish up to 15% of non-federal wages without a court order

31 U.S.C. 3720DExit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.11

Credit Bureau Reporting

Report delinquent debts to the major credit bureaus

31 U.S.C. 3711(e)Exit Fiscal Service Web site; will open in new browser window

31 CFR 901.5Exit Fiscal Service Web site; will open in new browser window

Referral to Private Collection Agencies (PCAs)

Refer debts to contractors for collection action

31 U.S.C. 3718Exit Fiscal Service Web site; will open in new browser window
(PCAs must comply with consumer protection laws)

N/A

Referral to the Department of Justice

Refer debts for litigation or for compromise, suspension or termination of large-dollar debts

31 U.S.C. 3711Exit Fiscal Service Web site; will open in new browser window

904 Referrals to the Department of JusticeExit the Fiscal Service Web site

Treasury Offset Program

Collect debts by offset of federal and state payments

31 U.S.C. 3716Exit Fiscal Service Web site; will open in new browser window
31 U.S.C. 3720AExit Fiscal Service Web site; will open in new browser window
26 U.S.C. 6402Exit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.2
31 CFR Section 285.4
31 CFR Section 285.5
31 CFR Section 285.7

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Quick Reference: Treasury Offset Program

PAYMENT OFFSET OR LEVIED

DEBT COLLECTED

STATUTORY AUTHORITY

REGULATORY AUTHORITY

AMOUNT DEDUCTED

Federal tax refund

Federal non-tax debts

26 U.S.C. 6402(d)Exit Fiscal Service Web site; will open in new browser window
31 U.S.C. 3720AExit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.2
Creditor agency
regulations

100%

Child support debts

26 U.S.C. 6402(c)Exit Fiscal Service Web site; will open in new browser window
42 U.S.C. 664Exit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.3
45 CFR 303.72
HHS procedures

State income tax debts

26 U.S.C. 6402(e)Exit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.8

State unemployment compensation debts

26 U.S.C. 6402(f)Exit Fiscal Service Web site; will open in new browser window

Social Security;
Black Lung;
Railroad Retirement
(benefit payments; may not be offset for child support or other State debts)

Federal non-tax debts

31 U.S.C. 3716Exit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.4

Lesser of 15%
or amount over
$750.00

Federal tax debts (levy)

26 U.S.C. 6331(h)Exit Fiscal Service Web site; will open in new browser window

26 CFR 301.6331-1

15%

Federal salary

Federal non-tax debts

5 U.S.C. 5514Exit Fiscal Service Web site; will open in new browser window
31 U.S.C. 3716Exit Fiscal Service Web site; will open in new browser window

5 CFR 550.1101
31 CFR Section 285.7
Creditor agency
regulations

15%

Child support debts

31 U.S.C. 3716(h)Exit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.1
State law & regulations
HHS procedures

50%-65%

Federal tax debts (levy)

26 U.S.C. 6331(h)Exit Fiscal Service Web site; will open in new browser window

26 CFR 301.6331-1

15%

Federal non-tax
non-salary
non-benefit
(includes civil service retirement, travel,
vendor, etc.)

Federal non-tax debts

31 U.S.C. 3716Exit Fiscal Service Web site; will open in new browser window

Federal Claims
Collection Standards
(31 CFR Parts 900-904)
31 CFR Section 285.5
Creditor agency
regulations

100%, except as
otherwise provided
by law (25% for retirement)

Child support debts

31 U.S.C. 3716(h)Exit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.1
State law & regulations
HHS procedures
Exec. Order 13019

Federal tax debts (levy)

26 U.S.C. 6331(h)Exit Fiscal Service Web site; will open in new browser window

26 CFR 301.6331-1

15%
100% for certain vendor payments

State debts
(other than child support)

31 U.S.C. 3716(h)Exit Fiscal Service Web site; will open in new browser window

31 CFR Section 285.6

100%, except as
otherwise provided
by law

State payments
(tax refunds,
vendor, etc.)

Federal non-tax debts

State statutes

State regulations
31 CFR Section 285.6

100%

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Quick Reference: Miscellaneous

TREASURY
TOOL/ACTION

DESCRIPTION

STATUTORY AUTHORITY

REGULATORY AUTHORITY

Barring Delinquent Debtors

Prevent delinquent debtors from receiving federal loans, loan insurance or loan guarantees

31 U.S.C. 3720BExit Fiscal Service Web site; will open in new browser window

31 CFR 285.13
31 CFR 901.6Exit the Fiscal Service Web site

Centralized Receivables Service (CRS)

Assist Federal agencies in the management of accounts receivables by increasing collections on current receivables and reducing and more efficiently collecting debts that become delinquent

31 U.S.C. 3711(g)Exit Fiscal Service Web site; will open in new browser window

N/A

Unclaimed Assets

Locate and recover unclaimed Federal financial assets

31 U.S.C. 3718Exit Fiscal Service Web site; will open in new browser window
31 U.S.C. 321
31 U.S.C. 3301

I TFM 6-5100

Publishing Debtors' Identities

Issue regulations to allow agencies to publish debtor identities

31 U.S.C. 3720EExit Fiscal Service Web site; will open in new browser window

N/A

Debt Sales

Sell nontax debts to the private sector

31 U.S.C. 3711(h)Exit Fiscal Service Web site; will open in new browser window

OMB Circular A-11Exit Fiscal Service Web site; will open in new browser window

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Code of Federal RegulationsExit the Fiscal Service Web site
Search the Code of Federal Regulations through the National Archives and Records Administration.

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   Last Updated:  March 25, 2014