Quick Reference: Cross-Servicing Program
| DEBT COLLECTION TOOL/ACTION | DESCRIPTION | STATUTORY AUTHORITY | REGULATORY AUTHORITY |
|---|---|---|---|
| Mandatory Transfer of Servicing to Cross-Servicing | All debts >120 delinquent (in some cases 180 days delinquent) must be sent to Fiscal Service unless exempted | 31 U.S.C. § 3711(g)(1) | 31 CFR § 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. § 3720D | 31 CFR § 285.11 |
| Credit Bureau Reporting | Report delinquent debts to the major credit bureaus | 31 U.S.C. § 3711(e) | 31 CFR § 901.5 |
| Referral to Private Collection Agencies (PCAs) | Refer debts to contractors for collection action | 31 U.S.C. § 3718 | 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. § 3711 | 31 CFR Part 904 |
| Treasury Offset Program (TOP) | Collect debts by offset of federal and state payments | 31 U.S.C. § 3716 31 U.S.C. § 3720A 26 U.S.C. § 6402 5 U.S.C. § 5514 | 31 CFR 285, Subpart A |
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) 31 U.S.C. § 3720A | 31 CFR § 285.2 | 100% |
| Child support debts | 26 U.S.C. § 6402(c) 42 U.S.C. § 664 | 31 CFR § 285.3 45 CFR § 303.72< | ||
| State income tax debts | 26 U.S.C. § 6402(e) | 31 CFR § 285.8 | ||
| State unemployment compensation debts | 26 U.S.C. § 6402(f) | |||
| 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. § 3716 | 31 CFR § 285.4 | Lesser of 15% or amount over $750.00 |
| Federal tax debts (levy) | 26 U.S.C. § 6331(h) | N/A | 15% | |
| Federal salary | Federal non-tax debts | 5 U.S.C. § 5514 31 U.S.C. § 3716 | 5 CFR § 550.1101 31 CFR § 285.7 | 15% |
| Child support debts | 31 U.S.C. § 3716(h) | 31 CFR § 285.1 State law & regulations HHS procedures | 50%-65% | |
| Federal tax debts (levy) | 26 U.S.C. § 6331(h) | N/A | 15% | |
| Federal non-tax non-salary non-benefit (includes civil service retirement, travel, vendor, etc.) | Federal non-tax debts | 31 U.S.C. § 3716 | Federal Claims Collection Standards (31 CFR Parts 900-904) 31 CFR § 285.5 Creditor agency regulations | 100%, except as otherwise provided by law (25% for retirement) |
| Child support debts | 31 U.S.C. § 3716(h) | 31 CFR § 285.1 State law & regulations HHS procedures Exec. Order 13019 | ||
| Federal tax debts (levy) | 26 U.S.C. § 6331(h) | N/A | 100%, except as otherwise provided by law | |
| State debts | 31 U.S.C. § 3716(h) | 31 CFR § 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 § 285.6 | 100% |
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. § 3720B | 31 CFR § 285.13 31 CFR § 901.6 |
| Centralized Receivables Service (CRS) | Provide collection services from billing through either collection or completion of due process | 31 U.S.C. § 3711(g) | N/A |
| Unclaimed Assets | Locate and recover unclaimed federal financial assets | 31 U.S.C. § 3718 31 U.S.C. § 321 | I TFM § 6-5100 |
| Publishing Debtors' Identities | Issue regulations to allow agencies to publish debtor identities | 31 U.S.C. § 3720E | N/A |
| Debt Sales | Sell nontax debts to the private sector | 31 U.S.C. § 3711(h) | OMB Circular A-11 |