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167.00 Indebtedness-Collection Upon Separation - Cancel debt to the U.S. Government

Recommendation of the Board for Correction on Case No 041-83, xxxxxxxx

Xxxxxxxx filed an application with the Board for Correction dated Xxxxxxxx, 1983 (revised Xxxxxx, 1986) requesting the Board to modify or cancel the ruling of the Comptroller General denying his request for waiver of monies due the U.S. Government for payment to him of Medical Special Pay benefits (thus cancelling his indebtedness). The merits of his request were reviewed on the basis of the documentation received. The relevant facts in the Board's Proceedings are included as Attachment 1.

After consideration of all information received, the recommendation of the members of the Board for Correction is that Xxxxx request be denied. The Board members recommend, however, that Xxxxx total obligation to the U.S. Government due to the overpayment be reduced to remove payments made by him of Federal, state and local taxes on the amount received. To achieve this end, Xxxxx would be required to document to CPOD's satisfaction, using income tax returns, etc., payments made by him of Federal, state and local taxes, from the money to which he was not entitled, to arrive at the net overpayment to him. The net overpayment to Xxxxx would also be adjusted to allow for the payment of taxes on the money Xxxxx has already reimbursed the U.S. Government. Xxxxx would be excused from making interest payments on the balance of the overpayment due.

Approval of this recommendation would require that Xxxxx record be changed to show that his obligation to the U.S. Government was less by the amount of the payments made by him of Federal, state and local taxes and the exclusion of liability for interest.

It is certified that the foregoing recommendation is a true and complete statement of the action taken by the members of the Board for Correction, as contained in the Attachments to this memorandum, and that the report of this action has been reviewed by the Board members. Further, it is certified that the documentation contained in Attachment 2 includes all information received by the members of the Board and that, in addition to applicable statutes, regulations and policies, it has been considered in arriving at this recommendation. Finally, it certified that a quorum of Board members was present on Xxxxxx 1986 when Xxxxx request was considered.

The foregoing action of the Board for Correction is submitted for your review and approval.

Ellen Wormser

Attachments:

(1) Board Proceedings
(2) Case File including all documentation received

Reviewed and Approved

I hereby approve the recommendation of the members of the Board for Correction on the request of xxxxx which was received and considered in accordance with the authority of 10 U.S.C. 1552 and 42 U.S.C. 213a (12).

Wilford J. Forbush
Deputy Assistant Secretary for Health Operations and
Director, Office of Management

BOARD ACTION ON THE REQUEST OF xxxxxxxx

I. FINDINGS AND CONCLUSIONS:

The central issue before the Board was whether or not Xxxxx should be permitted to benefit from what was acknowledged to be a bookkeeping error and be allowed to keep the money that was paid to him erroneously. The members of the Board found that:

1. Xxxxx should have known how much he was to have been paid and should have taken steps to avoid receiving more or less money than that to which he was entitled.
   
2. The U. S. Government should assume some responsibility for the overpayment to Xxxxx, since it resulted from an acknowledged error by CPOD.

Therefore:

The Board members concluded that Xxxxx should not be permitted to benefit from the error of overpayment. However, they recognized that it would be an undue hardship on Xxxxx to require him to pay back the taxes he paid on the amount received, and the interest expense from Xxxxx 1982 to the present, covering the period of administrative processing of his case.

RECOMMENDATION:

After consideration of all information presented, the recommendation of the members of the Board for Correction is that Xxxxx request be denied. Board members recommend, however, that Xxxxx total obligation to the U. S. Government due to the overpayment be reduced to remove payments made by him of Federal, state and local taxes on the amount received. To achieve this end, Xxxxx would be required to document to CPOD's satisfaction, using income tax returns, etc., payments made by him of Federal, state and local taxes, from the money to which he was not entitled, to arrive at the net overpayment to him. The net overpayment to Xxxxx would also be adjusted to allow for the payment of taxes on the money Xxxxx has already reimbursed the U. S. Government. Xxxxx would be excused from making interest payments on the balance of the coverpayment due.

Approval of this recommendation would require that Xxxxx record be changed to show that his total obligation to the U. S. Government was less by the amount of payments made by him of Federal, state and local taxes and the exclusion of liability for interest.

Anyone wishing to obtain an un-redacted copy of any of the decisions should submit a request for the un-redacted decision under the federal Freedom of Information Act (FOIA). Such requests should be directed to the PHS FOIA Office, Parklawn Building, Room 17 A-46, 5600 Fishers Lane, Rockville, MD 20857; telephone 301-443-5252; fax 301-443-0925.