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The total dollar amount equals the sum of lines 4A, 4B, 4C, and 4D of this section, and is system generated. (Sample Report)

This line item may be either positive or negative. All amounts reported on this line are to be footnoted with the reason for the adjustment.  (Sample Report)

The dollar amount is equal to the sum of lines 1, 2, 3, 4, 5, and 6 of this section and is system generated. Lines 4, and 6 are negative figures. Line 5 may be either positive or negative. The number and dollar amounts of lines 7A and 7B of this section do not equal line 7. (Sample Report)

• Receivables are recorded as delinquent if not paid by the payment due date unless terms of the contract or agreement provide otherwise. If the contract or agreement provides for a "grace" period, then the receivable is not considered delinquent until that period expires without payment.

• Receivables which are recorded as delinquent are aged from the payment due date or the day notification of debt was mailed depending on the contract or agreement, i.e., date of delinquency. If a "grace" period expires without payment, then the receivable is aged from the original payment due date or date of notification.

• Rescheduled receivables in a repayment plan and receivables being paid in installment agreements which are being paid as agreed are not considered delinquent receivables.

• Each delinquent debt is only to be counted once. For example, past due installments for the same account should be counted as one delinquent receivable. Multiple loans for a single borrower are to be counted as a separate debt for each loan.

• The entire amount of each single debt (or loan) is recorded as delinquent if any part of it has been delinquent more than 180 days, provided the debtor has been notified that the entire amount is due (or accelerated). (Sample Report)

Lines (A) through (G) show the dollar amounts of receivables that are delinquent for the respective time periods (1-90 days, 91-180 days, 181-365 days, 1-2 years, 2-6 years, 6-10 years, and over 10 years).  (Sample Report)

• Categories are not always mutually exclusive. An agency may refer a debt to a private collection agency and to Treasury for offset at the same time. This debt should be reported in both places.

• Debts at Treasury for cross servicing, a designated debt collection center, other third party, or the Department of Justice for litigation will not be reported in any other category, even though the entity working the debt may have referred it to a private collection agency or to Treasury for offset. (Sample Report)

Note: Debts that are more than 10 years delinquent may not be referred for offset, unless authorized by Federal law, for example, the Department of Education’s student loans.

This information is being requested to assist in identifying what actions agencies are taking to collect seriously delinquent debt, relative to compliance with the requirements of the Debt Collection Improvement Act (DCIA) of 1996. The DCIA requires agencies to (1) notify Treasury of all debts delinquent more than 180 days for offset and (2) refer to Treasury, with the aforementioned exceptions, all debts delinquent more than 180 days for cross-servicing debt collection.

• Compromise Debt: The amount of a debt remaining after the agency has compromised with the debtor and has received the payment, generally is NOT LEGALLY enforceable. The agency needs to determine whether to report this to the IRS on a 1099-C and get it off its books.

• Repatriation Loans Over 10 Years Delinquent: These debts are essentially written-off as uncollectible. They remain on the agency’s books for the sole purpose of preventing a debtor from obtaining a new passport until the debt is paid off.

• Repayment Agreements or Installments: If the agency and the debtor have reached either an installment or repayment agreement, this amount is no longer delinquent and the debt is reclassified as a “Current Receivable” and should be taken out of the 180 days delinquent category of reporting. (Sample Report)

Note on Debts That Are Not Legally Enforceable: Debts that are classified as in suspense, deemed not valid or no final determinations that the debts are due and valid should be classified in the “Other” category since they are not legally enforceable.

Note on Debts Scheduled for Sale: The DCIA excludes debts for referral to Treasury for cross-servicing that will be disposed of under an asset sales program within one year of becoming eligible for sale, or later than one year if consistent with an asset sales program and a schedule established by the agency and approved by the Director of the Office of Management and Budget. This should be classified in the “Other” category.

Note on Estate debt: To collect against an estate, the agency must file a claim against the estate. This is typically done through a probate court. If the agency is proceeding against the estate, it should be categorized “In Litigation”.

Note on Debts in Litigation at the Agency: If a debt is not being handled by DOJ, it can still be considered “In Litigation” if an actual court proceeding has been commenced. If the debt is with the agency counsel who is considering, but has not actually started litigation, then the debt should be “Referred to Treasury” and not reported as an exemption.

Note on Debts at PCAs: HHS, Education and Postal Service are agencies allowed to have debt over 180 days delinquent at PCAs. These agencies may have debts less than 180 days delinquent at PCAs, but once those debts become 180 days delinquent the debts remain exempt for another 30 days and then the debts must be referred to Treasury because these debts are considered eligible.

Note on State Managed Federal Debt: This should be classified in the Debt Exempted by Treasury for Cross-Servicing category, since the debt is being serviced by a third party.

Note on Debts Being Serviced by Third Parties: Third party debts include debts at third parties that are not being serviced by the agency. This debt category is exempt and classified in the Debt Exempted by Treasury from Cross-Servicing category.

Note on Debt over 10 years old: If a debt is on an agency’s books, it is exempt from “Offset”, but eligible for “Cross-Servicing” because TOP has a limitation of 10 years, unless otherwise provided by law. Cross-Servicing accepts debts over 10 years.

The purpose for requesting this information is to assist agencies in assessing the effectiveness of their current debt collection strategies. This information allows agencies to compare the number of cases and dollar amounts collected from each tool to the number and dollar amounts of debts applied to each tool.

The following criteria must be used when preparing this section:

• Categories are not always mutually exclusive. An agency may collect a debt from a private collection agency and from Treasury’s Offset program at the same time. The collections should be reported in both places.

• Collections by Treasury’s cross servicing program or a designated debt collection center, third party, or the Department of Justice (by litigation) will not be reported in any other category, even though the entity working the debt may have received funds from a private collection agency or from the Treasury Offset Program.

• The actual number of debts or claims for which collections were received is to be reported. If amounts were received for the same debt by more than one tool or technique, the debt is to be counted once for each tool or technique that was successful in collection. (Sample Report)

The dollar amount for this line equals the sum of lines 1A through 1J of this section and is system generated.

Collections on receivables will be itemized in the following categories: (Sample Report)

Important: Reporting to IRS always occurs in the 2nd Quarter of the fiscal year (February). For example, if a debt is written off in March 2002 and the agency decides to terminate all efforts to collect it in June 2003, the debt would be reported to IRS in February 2004, and reported to FMS on the 2nd quarter, FY 2004 report.

Debts reported on this line have been written off and closed out, and all collection actions have ceased. Note: If there is a significant difference between the amount of debt reported as closed out and the amount of debt reported to the IRS, please describe in the footnote section the amount of this difference and the reason for this difference.

If the debtor fails to pay the debt by the specified date, the debt is delinquent and the "date of delinquency" is the day given as the payment due date for contractual agreements or the day notification of the debt was mailed, as appropriate.

If any part of a debt has been delinquent more than 180 days, agencies should report the entire amount of the debt as delinquent if the debtor has been notified that the entire amount is due (or accelerated). (Sample Report)

Administrative costs: costs incurred in processing and handling a delinquent debt. Costs should be based on actual costs incurred or cost analyses which estimate the average of actual additional costs incurred for particular types of debt at similar stages of delinquency. Administrative costs should be accrued and assessed from the date of delinquency.

Penalties: a punitive charge assessed for delinquent debts. The rate to be assessed is set by law at no more than 6% per year and is assessed on the portion of a debt remaining delinquent more than 90 days, although the charge will accrue and be assessed from the date of delinquency. Penalties should be assessed unless otherwise provided in legislation or a contractual agreement.

Late payment interest: the charge assessed on delinquent debts based on the time value of money owed and not paid when due. As established by the Debt Collection Act of 1982, the minimum annual rate to be assessed is the Department of the Treasury's Current Value of Funds Rate. A higher rate may be used if judged by the agency as necessary to protect the Government's interests. Late payment interest is accrued and assessed from the date of delinquency, and should be assessed unless otherwise provided in legislation or a contractual agreement. Additionally, late payment interest may be waived by the agency at any time (must then be written off) or it may accrue indefinitely. (Sample Report)