TN 2 (05-95)

SI 00815.460 Return of Erroneous Payments

A. Policy

A payment is not income when the individual is aware that he/she is not due the money and returns the check uncashed or otherwise refunds all of the erroneously received money.

B. Procedure

1. Timely return

If the individual returns or refunds an erroneous payment in the same or following month of receipt, accept the allegation that the money was returned and do not charge the erroneous payment as income.

2. Delayed return

If there is a delay in the return of an erroneous payment beyond the month following the month of receipt:

  • verify return of the payment;

  • document the reason for the delay (e.g., lengthy hospital stay) and any other relevant facts; and

  • record your determination in the file.

C. Example

In August, Bob Brown states that he received his regular January VA pension check of $290. However, during the latter part of January, he received another $290 VA check along with a letter explaining that his January check had been delayed due to a computer error. Mr. Brown explains that he knew the second check was a duplicate and says he had not been able to return it sooner due to illness. The CR verifies the return of the $290 check in July as well as Mr. Brown's illness. The CR then makes a determination concerning Mr. Brown's income and records it in the file.

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SI 00815.460 - Return of Erroneous Payments - 05/04/1995
Batch run: 11/21/2013