The Omnibus Budget Reconciliation Act of 1990 permits the Social Security Administration (SSA) to recover delinquent Title II overpayments from former beneficiaries by offsetting their Federal income tax refunds. The Unemployment Compensation Act of 1992 made TRO a permanent authority for SSA.

SSA's system selects debts for recovery by TRO from the Recovery of Overpayments, Accounting and Reporting (ROAR) file, the Master Beneficiary Record (MBR) and Numident records. The main criteria for TRO selection is:

• •

  The debtor is alive;

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  The debtor is not entitled to benefits (ledger account file (LAF) code is equal to T, U, X, N or P);

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  The debtor was 18 years or older when the debt was established on SSA's records;

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  The beneficiary’s own account number (BOAN) for the debtor can be identified on the MBR;

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  The debt is $25 or more;

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  The debtor is not making regular installment payments, or efforts to recover the debt have terminated (for example,TC-71 debts);

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  The debt is past-due, and

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  The debt is legally enforceable.

Once SSA's system selects a debt for TRO, SSA sends the debtor a notice using the debtor's address of record from the MBR. If the MBR does not have an address or if the notice is returned as undeliverable based on the MBR address, TOP will retrieve any available address from the credit bureau via an automated address request operation run by SSA.

1. a. 

   If the credit bureau provides an updated address, SSA will create and send a new pre-offset notice using that address.

2. b. 

   If the credit bureau does not provide an updated address, then the case will be removed from TOP.

The notice informs the debtor of the planned offset action and that:

• •

  He or she owes a delinquent overpayment debt in a particular amount;

• •

  SSA plans to refer the debt to Treasury for TRO and send information about the debt to credit bureaus after 60 days have expired from the date on the notice;

• •

  SSA will not take this action if, before the end of that 60-day period, the debtor pays the debt in full, makes regular installment payments under an agreement with SSA, requests waiver, or furnishes evidence showing that he or she does not owe all or part of the stated amount or SSA does not have the right to collect the debt; and

• •

  The debtor has the right to review and request a copy of SSA's records regarding the debt.

For SSA TRO purposes, a past-due debt is one in which:

• •

  Payment is delinquent; and

• •

  No appeal or waiver request is pending.

A debt is delinquent on the later of the following dates:

• •

  The 60th day after the date the debt is established on ROAR; or

• •

  The date on which a decision on a reconsideration and waiver request is posted to ROAR.

For a request for an explanation of the overpayment, proceed as follows:

If the debtor requests a waiver, obtain a Request for Waiver of Overpayment Recovery or Change in Repayment Rate (SSA-632-BK) in accordance with current instructions in GN 02250.002 and GN 02250.200.

Advise the debtor that TRO remains in effect until SSA receives a completed SSA-632-BK (or its equivalent).

Input the waiver request in the Protest Request screen (DRPF for FO and DRPT for TSC) under the TRO category only when the form (or any other written request) is received in accordance with GN 02201.034. Do not delay recording the request once written documentation is received.

If the debtor asks to review records in person at the FO, obtain all systems (MBR/ROAR/PHUS) queries and explain what the queries show.

If the debtor makes a request by telephone to the FO, set up an appointment for a review of the MBR/ROAR/PHUS queries. Set the appointment well within the 60-day time limit the debtor has to submit evidence.

If the debtor makes a request to a TSC or PSC, advise the FO to contact the debtor to set up an appointment, and advise the requester that someone from the FO will contact them to schedule an appointment.

In all situations, the FO will attempt to satisfy the request for review without the need to obtain the claims folder. However, if the debtor indicates he or she wishes to review the folder, you must obtain it.

If the FO has not conducted a folder review by the time of the TRO certification run, input “TRO Explanation” to the Protest/Stop Recovery request (PC) screen (DRPR using code TC-23F).

If the debtor wants to repay the debt by monthly installments, follow GN 02210.180 to negotiate a reasonable monthly payment amount.

Advise the debtor that the debt will remain eligible for TRO until we receive a payment and TRO will be inactivated only as long as payments are made according to the agreement. However, upon default of one or more installment payments, the system will refer the debt to Treasury for collection, where it will remain until the debt is paid in full. The debtor may subsequently, offer to restart or resume paying regular installments. We will accept and apply those payments towards the debt but the payments will not inactivate TRO until the debt is paid in full.

Tell the debtor to send installment payment to the address shown on the “Notice of Payment Due” form attached to the pre-offset notice. If the debtor does not have the form, provide the remittance address (MATPSC, P.O. Box 3430, Philadelphia, PA 19122-9985). Always make sure that the name and claim number are on the remittance to ensure proper posting for the beneficiary.

Input the manual installment agreement via the Record Installment Agreement (DRIN) screen (MS DMS 006.014).

If a debtor alleges nonreceipt of the overpayment, obtain an MBR, ROAR and PHUS query. If the query shows no record of nonreceipt of the payment(s) in question, proceed as follows:

• •

  If the debtor had a representative payee, explain that we sent the payment to the payee and there is no indication that the payee did not receive the payment(s).

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  If there was no representative payee (payee), explain that our records do not show any evidence of a nonreceipt allegation at the time we sent the initial overpayment notice.

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  If the debtor insists that we provide a photocopy of the check(s) in question, explain that we will investigate but our system will still refer the debt to Treasury for offset. We will repay any erroneous offset if our investigation supports the nonreceipt allegation. Follow GN 02406.000 to handle the nonreceipt allegation (these references apply to Title II, Title XVI and Black Lung payments). DO NOT make a ROAR input.

If the debtor makes a compromise offer, process in accordance with existing instructions in GN 02215.100 through GN 02215.125.

If a debtor alleges never receiving the initial overpayment notice, proceed as follows:

For a report of death, follow this procedure:

If the debtor alleges a bankruptcy petition is pending or the court discharged the debt in bankruptcy, obtain a copy of the petition or discharge order. Input “Decision Pending” via the DFBP screen (Record Bankruptcy Petition) and send the petition to the PSC/OCO for action. (See GN 02215.185 for information on handling bankruptcy cases.) To process a notification of pending bankruptcy, see GN 02215.190 for FO procedures and GN 02215.195 for PC procedures.

If the debtor alleges that the court discharged the debt in a bankruptcy judgment, ask him or her to submit a copy of the discharge. If the judgment includes the SSA debt, input “Decision Pending” via the DFBP screen to prevent any further collection activity. If the judgment does not include the SSA debt, make no system input. The PSC/ Office of Central Operations (OCO) handles the case in accordance with GN 02215.230.

If a debtor alleges that he or she filed a protest or requested waiver or hearing but never received a decision, obtain a ROAR query and proceed as follows:

1. a. 

   If there is a 23W, 23R, or 23H posted before the date of the offset but no decision has been made and released:

   • •

     The PC refunds any amount offset by Treasury. This refund is known as an Agency Refund, and we must notify Treasury about the refund. Input the Agency Refund using the Correct Offset Amount screen (TRCA), which is requested from the Debt Management Menu (DMMU) function number 12-Treasury Offset Menu (TRMU) screen (see MS DMS 014.005).

   • •

     Look for an SSA-632-BK (Request for Waiver of Overpayment Recovery or Repayment Rate), a letter from the debtor or his or her representative or a Form SSA-795 (Statement of Claimant or Other Person) in FO records or in the claims folder.

   • •

     Process the waiver/protest in accordance with GN 02201.034 or GN 02201.036.

2. b. 

   If ROAR reflects an unfavorable reconsideration, waiver, or hearing decision:

   • •

     Advise the debtor that since we resolved the issue, recovery via TRO was appropriate.

   • •

     Do not refund any amounts offset by Treasury.

3. c. 

   If there is no ROAR posting but the debtor still indicates he or she filed a prior protest/waiver/hearing, look for an unprocessed SSA-632-BK, letter or SSA-795 in FO records or in the claims folder. If there is no evidence in the claims folder, check DMS Remarks.

   • •

     Documentation found of waiver/protest or hearing filed before certification/offset

     Process as in GN 02201.030E.1.a. in this section.

     Post the pending request to ROAR via the DRPR or DRPF screen.

   • •

     No documentation found advise the debtor that the records review fails to produce any evidence of a precertification protest, waiver or hearing. Follow GN 02201.030E.2. in this section, if the debtor wishes to file a new waiver request.

If we receive a request for waiver , proceed as follows:

1. a. 

   Obtain an SSA-632-BK in accordance with current instructions in GN 02250.002 and GN 02250.200. Input the request for waiver.

2. b. 

   If TRO recouped the entire debt (i.e., the debt balance is zero), proceed as follows:

   • •

     Consider waiver on the entire overpayment amount, and follow GN 02201.034 to process the waiver.

   • •

     Advise the debtor that SSA will refund the amount offset only if SSA approves the waiver.

   • •

     Refund any monies due if the waiver is approved (partially or fully). Refund any amount offset by Treasury. Process the refund as in GN 02201.030E.1.a. in this section.

3. c. 

   If TRO partially recouped the debt, proceed as follows:

   • •

     Consider waiver on the outstanding balance unless the debtor asks for waiver for the full overpayment amount. See GN 02250.310A.3 which states that for recovery to defeat the purpose for amounts already recovered, the person must show that he went into debt to repay the overpayment.

   • •

     Follow GN 02201.034 to process the waiver.

   • •

     Refund any monies due if we approve the waiver request (partially or fully). Process the refund as in GN 02201.030E.1.a. in this section.

When a request for installment payments is received, proceed as follows:

1. a. 

   If the debtor negotiated an installment agreement prior to certification and the debtor made payment(s) in accordance with that agreement but offset still occurred, refund the amount offset, unless the debtor wants us to retain the money as payment toward the debt.

   If you refund the offset, input an Agency Refund as in GN 02201.030E.1.a. in this section.

2. b. 

   If the request is made after certification, proceed as follows:

   • •

     Input the manual installment agreement via the Record Installment Agreement (DRIN) screen (MS DMS 006.014).

   • •

     Advise the debtor that offset may have already occurred or could still occur because SSA has no control over when Treasury conducts the TRO operation. Explain that SSA will not refund any offset monies (except for excess collection, see GN 02201.030E.4) The installment agreement will apply to the debt balance remaining after offset.

Excess collections occur when the total amount of voluntary payments and offsets exceed the debt amount. For example, when a certified debtor enters into an installment agreement and fully refunds the debt after certification, an excess collection would occur if Treasury offsets for the full amount of the debt.

If one debtor is on the record, refund the excess amount using the instructions below:

Refund Excess collection to the TRO debtor.

• •

  If the offset causes the excess collection, input an Agency Refund as in GN 02201.030E.1.a. in this section.

• •

  If the voluntary remittance caused the excess collection, repay the excess to the debtor but do not input an Agency Refund because we are sending back only the voluntary remittance, not the TRO.

If more than one debtor is on the record and the system posted the excess collection to that other debtor, an “unverified offset alert” is generated to the PC. If this occurs, proceed as follows:

• •

  Refund the excess collection to the TRO debtor. If the offset caused the excess collection, input an Agency Refund as in GN 02201.030E.1.a. in this section.

• •

  If the voluntary remittance caused the excess collection, repay the excess to debtor but do not input an Agency Refund because we are sending back only the voluntary remittance, not the TRO.

• •

  Remove the other debtor from the Recovery and Collection of Overpayment Process (RECOOP) system if the other debt was loaded as a result of the posted excess refund. Correct the other debtor's overpayment balance.

If the FO discovers the incorrect BOAN, report the case to the PC so that it can be deleted from TRO. Provide the claim number, debtor's name and both the correct and incorrect BOANs in the report.

If the PC discovers the incorrect BOAN, stop the offset by using the TRSO screen. Select “permanent deletion” as the reason for stopping the offset (see MS DMS 014.003).

Correct the MBR per SM 00613.605 once the correct BOAN is determined.

Refund the erroneous offset to the person due the tax refund.

When a couple files a joint tax return and the person who is not an SSA debtor wishes to receive his or her portion of the refund, advise the person to contact the Internal Revenue Service (IRS) (1-800-829-1040) and to ask for an "injured spouse claim". The IRS is responsible for adjudicating injured spouse claims and any refunds must be made by the IRS, not SSA.

A debtor contacted us in September and provided documents he felt would show that the debt does not exist. In November, the PSC advised him that his case was reviewed and the overpayment does exist. The debtor has taken no further action until contacting us in early February to say that he has been refused a rapid refund.

Explain that our referral to Treasury for collection was proper. If there is a balance after the offset and he or she now wishes to pay that balance in full or negotiate an installment agreement, we will accept it. And, explain that SSA we will not return the offset monies unless the total that was repaid exceeds the amount of the overpayment, or if he or she requests a waiver that SSA subsequently approves.