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Debt Collection Legal Authorities Quick Reference Charts

Quick Reference: Cross-Servicing Program

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DEBT COLLECTION
TOOL/ACTION
DESCRIPTION STATUTORY AUTHORITY REGULATORY AUTHORITY
Mandatory Transfer of Servicing to Treasury All debts >180 delinquent must be sent to Fiscal Service unless exempted 31 U.S.C. 3711(g)(1) 31 CFR Section 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 Section 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
(PCAs must comply with consumer protection laws)
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 904 Referrals to the Department of Justice
Treasury Offset Program 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 Section 285.2
31 CFR Section 285.4
31 CFR Section 285.5
31 CFR Section 285.7

Quick Reference: Treasury Offset Program

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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 Section 285.2
Creditor agency regulations
100%
Child support debts 26 U.S.C. 6402(c)
42 U.S.C. 664
31 CFR Section 285.3
45 CFR 303.72
HHS procedures
State income tax debts 26 U.S.C. 6402(e) 31 CFR Section 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 Section 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 Section 285.7
15%
Child support debts 31 U.S.C. 3716(h) 31 CFR Section 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 Section 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 Section 285.1
State law & regulations
HHS procedures
Exec. Order 13019
Federal tax debts (levy) 26 U.S.C. 6331(h) N/A 15%
100% for certain vendor payments
State debts 31 U.S.C. 3716(h) 31 CFR Section 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 Section 285.6
100%

Quick Reference: Miscellaneous

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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

Last modified 11/23/18