FAM 1994-42
FINANCIAL ADMINISTRATION MEMORANDUM NO. 94-042 (II.J.)
To: Bureau Assistant Directors - Administration
Director, Office of Administrative Services
Bureau Finance Officers
Chief, Division of Fiscal Services
From: Chief, Division of Financial Administration
Office of Financial Management
Subject: Internal Revenue Service (IRS) Corporate Refund Offset
Program
The purpose of this Financial Administration Memorandum (FAM) is to
announce the initiation of the IRS Corporate Refund Offset Program.
Beginning, January 1, 1995, IRS will commence offset of corporate tax
refunds as a method to collect debts owed the Federal government.
The Department will participate in the program and requests the
following information from each bureau:
(1) An estimate of the dollar amounts that would be certified for
collection by offset.
(2) An estimate of the number of cases that would be certified for
collection by offset.
Each bureau should begin formulating its debtor list. The information
on each debtor will be forwarded to IRS beginning June 23, 1994. We
will have several other opportunities in the months of July and August.
The list should contain the following information:
(1) Name of the debtor;
(2) Amount of debt;
(3) Date of delinquency; and
(4) Taxpayer Identification Number.
In addition, IRS will begin its preoffset phase for consumer debts on
June 23, 1994. Bureaus can begin referring delinquent debtor
information for preoffset now. IRS will run several debtor address
inquiries between now and the final certification period in December.
It is important that all bureaus participating in the offset program
obtain current IRS addresses for its delinquent debtors. These
addresses must be used in notifying the debtor of the bureaus intent to
collect via taxpayer refund offset.
It appears that both the commercial and consumer offset programs will
run concurrently. Debtor information on both can be sent to this office
at the same time. Both will be transmitted to IRS via the REMIT system.
If you have any additional questions regarding this FAM, please contact
John Merrell on (202) 208-4703.
Stephen L. Varholy
