[Code of Federal Regulations]
[Title 28, Volume 1]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 28CFR11.12]

[Page 250-251]
 
                    TITLE 28--JUDICIAL ADMINISTRATION
 
                    CHAPTER I--DEPARTMENT OF JUSTICE
 
PART 11_DEBT COLLECTION--Table of Contents
 
   Subpart C_IRS Tax Refund Offset Provisions for Collection of Debts
 
Sec. 11.12  Procedures.

    (a) The Department may refer any past due, legally enforceable non-
judgment debt of an individual, organization or entity to the IRS for 
offset if the Department's or the referring agency's rights of action 
accrued more than three months but less than ten years before the offset 
is made. Debts reduced to judgment may be referred at any time. Debts in 
amounts lower than $25.00 are not subject to referral.
    (b) The Department will provide the debtor with written notice of 
its intent to offset before initiating the offset. Notice will be mailed 
to the debtor at the current address of the debtor, as determined from 
information obtained from the IRS pursuant to 26 U.S.C. 6103(m)(2), (4), 
(5) or from information regarding the debt maintained by the Department 
of Justice. The notice sent to the debtor will state the amount of the 
debt and inform the debtor that:
    (1) The debt is past due;
    (2) The Department intends to refer the debt to the IRS for offset 
from tax refunds that may be due to the taxpayer;
    (3) The Department intends to provide information concerning the 
delinquent debt exceeding $100 to a consumer reporting bureau (credit 
bureau) unless such debt has already been disclosed; and

[[Page 251]]

    (4) The debtor has 65 days from the date of notice in which to 
present evidence that all or part of the debt is not past due, that the 
amount is not the amount currently owed, that the outstanding debt has 
been satisfied, or, if a judgment debt, that the debt has been 
satisfied, or stayed, before the debt is reported to a consumer 
reporting agency, if applicable, and referred to the IRS for offset from 
tax refunds.
    (c) If the debtor neither pays the amount due nor presents evidence 
that the amount is not past due or is satisfied or stayed, the 
Department will report the debt to a consumer reporting agency at the 
end of the notice period, if applicable, and refer the debt to the IRS 
for offset from the taxpayer's federal tax refund.
    (d) A debtor may request a review by the Department if the debtor 
believes that all or part of the debt is not past due or is not legally 
enforceable, or, in the case of a judgment debt, that the debt has been 
stayed or the amount satisfied, as follows:
    (1) The debtor must send a written request for review to the address 
provided in the notice.
    (2) The request must state the amount disputed and the reasons why 
the debtor believes that the debt is not past due, is not legally 
enforceable, has been satisfied, or, if a judgment debt, has been 
satisfied or stayed.
    (3) The request must include any documents that the debtor wishes to 
be considered or state that additional information will be submitted 
within the time permitted.
    (4) If the debtor wishes to inspect records establishing the nature 
and amount of the debt, the debtor must request an opportunity for such 
an inspection in writing. The office holding the relevant records shall 
make them available for inspection during normal business hours.
    (5) The request for review and any additional information submitted 
pursuant to the request must be received by the Department at the 
address stated in the notice within 65 days of the date of issuance of 
the notice.
    (6) The Department will review disputes and shall consider its 
records and any documentation and arguments submitted by the debtor. The 
Department's decision to refer to the IRS any disputed portion of the 
debt shall be made by the Assistant Attorney General for Administration 
of his designee, who shall hold a position at least one supervisory 
level above the person who made the decision to offset the debt. The 
Department shall send a written notice of its decision to the debtor. 
There is no administrative appeal of this decision.
    (7) If the evidence presented by the debtor is considered by a non-
Departmental agent or other entities or persons acting on the 
Department's behalf, the debtor will be accorded at least 30 days from 
the date the agent or other entity or person determines that all or part 
of the debt is past-due and legally enforceable to request review by an 
officer or employee of the Department of any unresolved dispute.
    (8) Any debt that previously has been reviewed pursuant to this 
section or any other section of this part, or that has been reduced to a 
judgment, may not be disputed except on the grounds of payments made or 
events occurring subsequent to the previous review of judgment.
    (e) The Department will notify the IRS of any change in the amount 
due promptly after receipt of payments or notice of other reductions.
    (f) In the event that more than one debt is owed, the IRS refund 
offset procedure will be applied in the order in which the debts became 
past due.