Application of the $2,000 administrative waiver tolerance depends on the total amount
of a person's liability. Thus a person who is liable for several overpayments, which
total more than $2,000, even though each is $2,000 or less, cannot be considered for
waiver under this tolerance. Likewise, if an overpayment of more than $2,000 has been
reduced to $2,000 or less by repayment or collection, the tolerance does not apply.
Consideration of waiver under the tolerance is also dependent on overpayments to other
members of the household. In single family situations where one request for waiver
can be used for all household members, the largest liability any person has will determine
if the tolerance applies. Thus if one household member has liability for an overpayment
of $2,200, waiver under the tolerance cannot be considered for any other member of
that household, even if their own personal liability is $2,000 or less.
If there is an indication that the person may be at fault in causing the overpayment,
the tolerance cannot be used. Full waiver development is necessary. For example, the person requesting waiver is overpaid for the second time because
of work and earnings. Since this is the second overpayment for the same reason, there
is an indication that the person may be at fault. Also, if the overpayment was caused
by receipt of duplicate payments and it has been proven that the person did receive
both payments, there is an indication that the person may be at fault. Full waiver
development must be done in both cases. This does not mean that without fault cannot
be found, only that full waiver development is necessary. To determine whether a waiver
request is appropriate under the administrative tolerance, you may use the Administrative Tolerance Decision Tree.
NOTE: An organizational payee is considered a “person” for the purposes of these instructions.