Offset of Tax Refund Payments To Collect Past-Due, Legally Enforceable Nontax Debt

Résumé

Effective January 1, 1998, the Department of the Treasury (Treasury) will merge the tax refund offset program with the centralized administrative offset program operated by the Financial Management Service (FMS), a bureau of the Department of the Treasury. The merger of the two offset programs is intended to maximize and improve Treasury's government-wide collection of delinquent nontax debt owed to the Federal Government. FMS will administer nontax debt collection functions that include the tax refund offset program. The Internal Revenue Service (IRS) will remain responsible for the administration of the internal revenue laws. To conform with the requirements of the merged offset program, this interim rule supersedes the tax refund offset procedures promulgated by the IRS.