If payments for the current calendar month or subsequent month or both are included
in the amount subject to installments, issue an A-OTP for the current month or subsequent
month or both. In some instances, this action removes the case from the installment
NOTE: Take this action only after any prepayment review of large underpayments (see SI 02101.025), adjustment for IAR calculation, or adjustment for direct attorney/non-attorney
fee payment and collectible overpayment from a different period.
EXAMPLE 1: If we effectuate the SSI claim on August 15th, the current computation month is September
and the first monthly payment would be issued September 1st.
We treat all due amounts through August as an underpayment and are subject to the
installment provisions if the underpayment is more than three times the FBR. The FO
may issue an A-OTP for August (the current calendar month).
EXAMPLE 2: If we effectuate the claim after the current computation month cutoff in August,
the current computation month is October, and the first monthly payment is issued
October 1st. Treat all payments due through September as an underpayment, subject
to installment payment requirements if the underpayment is more than three times the
FBR. In this situation, the FO may pay the current calendar month’s payment (August),
and September’s payment by A-OTP. The FO needs to issue a manual notice when paying
the current or subsequent month by an A-OTP. In both examples, the possibility exists
that the A-OTP may reduce the underpayment to less than three times the FBR, removing
the underpayment from installment payment requirements.