PROGRAM OPERATIONS MANUAL SYSTEMPart SI – Supplemental Security IncomeChapter 022 – OverpaymentsSubchapter 20 – Recovery Procedures for Supplemental Security Income OverpaymentsTransmittal No. 132, 05/06/2025
Audience
Originating Component
OFPO
Effective Date
Upon Receipt
Background
The Treasury Offset Program (TOP) operated by the Department of the Treasury Bureau of Fiscal Service (BFS) is a fully automated, centralized offset program that intercepts federal and state payments to collect delinquent debts owed to federal and state agencies. BFS approved the suspension of debt collection activities using TOP for a period of six months, expiring in September 2020. We will take steps to resume SSA’s use of the Treasury Offset Program and begin notifying delinquent debtors of our intent to refer their debts to the Department of the Treasury for offset as required by our regulations.
Summary of Changes
SI 02220.012 Collection of Title XVI Overpayments by Tax Refund Offset (TRO)
We updated links and language with respect to the TOP Resumption. We incorporated all the changes requested during the eIRD review.
Subsection D and E: We update the content and title names.
SI 02220.013 Collection of Title XVI Overpayments by Administrative Offset
We updated links and language with respect to the TOP Resumption.
SI 02220.014 Reporting Title XVI Overpayment Debts to Credit Bureaus
The Debt Collection Improvement Act of 1996 (DCIA, P.L. 104-134) provided for the establishment of TOP. For a detailed description of the TOP process, see GN 02201.029.
Section 3720A of 31 USC permits the Social Security Administration (SSA) to recover delinquent title XVI overpayments from former recipients by offsetting their federal income tax refunds. The Foster Care Independence Act of 1999 (FCIA) authorizes the collection of delinquent title XVI debts by administrative offset. For the new title XVI policy on administrative offset, see SI 02220.013.
Selection of debts for recovery by TRO is made by the system each week from the Supplemental Security Record (SSR) and Numident records. All of the following criteria must apply:
The debtor is alive;
The debtor is not eligible for Supplemental Security Income (SSI) benefits;
The debtor was at least 18 years old when the debt was established on SSA's records;
The debt is $25 or more;
The debtor is not making regular installment payments, or efforts to recover the debt have terminated;
The debt is past-due, and
The debt is legally enforceable.
NOTE:
Treasury conducts the TRO program through its automated system, TOP. TRO runs on a weekly selection and certification cycle. For more information about TOP, see GN 02201.029.
Effective May 12, 2017, SSA no longer refers title II, title VIII, or title XVI debts that have a delinquency date of May 19, 2002 or earlier. There is no manual action necessary to prevent TOP selection because the selection is automated. Rather, our automated ECO system no longer selects these debts for external collection. Debts with a delinquency date after May 19, 2002 remain eligible for TOP referral.
Due to economic challenges during the COVID-19 pandemic, SSA suspended TOP debt collection activities in March 2020. TOP activities resumed in March 2025. Debtors referred to TOP prior to March 2020 received pre-offset notification before TOP activities resumed.
Once a debt is selected for TRO, SSA must send the debtor a pre-offset notice. ECO retrieves a verified address for the debtor from an Address Verification Contractor (AVC).
a. Notice issuance
If the AVC provides a good address, then the pre-offset notice is mailed to that address.
If the AVC does not return a good address and the MBR or Supplemental Security Record (SSR) was updated within the last year, the notice is mailed to the address on the MBR or SSR.
If there is not good address from the AVC and the MBR or SSR address was updated more than a year ago, the AVC will be checked again in six months. The pre-offset notice will be mailed once a good address is obtained.
For information on handling undeliverable pre-offset notices, refer to SI 02220.012F in this section.
Refer to GN 02201.029C for more information on the selection, notification, and referral process.
The automated address request operation is a separate project from the address request made by the Debt Management Sections (DMS). The automated operation has no impact on the DMS requests.
b. Notice information
The notice informs the debtor of the planned offset action and:
They owe a delinquent debt for a specified amount;
SSA plans to
refer the debt to Treasury for TRO,
if applicable,
administrative offset,
conduct administrative wage garnishment, 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
they do not owe all or part of the stated amount, or
SSA does not have the right to collect debt.
The debtor may review and copy SSA's records about the debt.
ECO notices sent November 2015 or later are stored in the Online Notice Retrieval System (ORS). For ECO notices sent prior to November 2015, view the ECO master query. For additional information on the ECO master query, see MS 01114.007.
For SSA TRO purposes, a past-due debt is one on 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 initial overpayment notice date; or
The date on which a decision on a protest (i.e. appeal or waiver request) is made.
A legally enforceable debt for SSA TRO purposes is a debt that still is subject to recovery from the debtor because:
The debt has not been paid in full;
Recovery has not been waived;
A bankruptcy petition is not currently pending in court;
The debt was not previously discharged in bankruptcy;
The debtor is alive; and
The debtor is responsible for the debt.
In most cases, the debtor has previously been given ample opportunity to dispute the overpayment and repay the debt. However, there are situations where the selection for TRO may be erroneous because SSA's records contain outdated or incorrect information.
Although the time period to request reconsideration of the overpayment determination has passed, under the TRO process, the debtor has the right to object to the collection of a debt on the basis that all or part of the debt is not past-due or not legally enforceable (see SI 02220.012B, SI 02220.012C, and SI 02220.012E.6 in this section). This section explains how to handle specific inquiries, protests and allegations prior to certification and offset.
If a request for an explanation of the overpayment is received, use the SSID to provide an explanation of the overpayment. Keep explanations generic to the extent possible. For example: "You were no longer disabled as of 05/24 and continued to receive checks through 12/2."
If online queries contain insufficient information or unresolvable discrepancies, proceed as follows:
On the MSSICS Update Sequence Data (UOSD) screen (see MS 00304.006):
Select EXPLANATION OF OVERPAYMENT to suspend billing.
Refer a priority Modernized Development Worksheet (MDW) to the jurisdictional FO
Request the FO provide an explanation to the debtor.
Annotate the referral Necessary Action - TOP/Credit Bureau Case - Do Not Backlog.
If the FO received an explanation request from the PC or TSC via an MDW:
Provide a satisfactory explanation to the debtor,
Remove the suspend billing code via the MSSICS Update Sequence Data (UOSD) screen, see MS 00304.006.
a. General response
If a request for an explanation of TRO is received, explain the following:
Congress passed a law which allows Treasury to withhold delinquent overpayments from federal payments, including income tax refunds, due the overpaid person.
The pre-offset notice also contains an explanation of TRO.
No systems input is needed to document the request for explanation of TRO or other external collections (ECO) tools
b. Specific debt response
If the debtor ask for an explanation of a delinquent or legally enforceable debt, see SI 02220.012B and SI 02220.012C in this section.
If a request for waiver is received,
Obtain an SSA-632-BK in accordance with current instructions in GN 02250.001 and GN 02250.002.
Advise the debtor that TRO remains in effect until SSA received a completed and signed SSA-632-BK (or its equivalent).
When the signed form (or other request) is received
Input the waiver request via the Direct SSR Update Waiver (UOWV) screen (see MS 00304.009and SM 01311.423).
Do not delay recording the request once written documentation is received. Process in accordance with GN 02250.002.
In all situations, the FO will attempt to satisfy the review request without the need to obtain the paper claims folder. However, if the debtor wishes to review the folder you must obtain it (for SSI folder recall, see SM 01201.205 ).
If the debtor ask to review records:
In person at the FO - obtain all systems queries and explain what the queries show.
By telephone to the FO - set up an appointment for a review of the queries. Schedule the appointment well in advance of the 60-day time limit; emphasize the debtor must submit evidence.
To a PC or TSC - advise the FO, via a priority MDW, to contact the debtor to set up an appointment. Annotate the MDW accordingly, "Urgent-TOP/Credit Bureau Case."
If the FO has not conducted a folder review before due process has expired, add EXPLANATION OF OVERPAYMENT on the Update Sequence Data (UOSD) screen in Direct SSR Update until the necessary review of the record is complete, see MS 00304.006 .
Certification occurs no less than 60 days after the date of the pre-offset notice.
If the debtor wants to repay the debt by monthly installments, to negotiate a reasonable monthly payment amount follow SI 02220.025B.2.
Advise the debtor the debt of the following:
The debt will remain eligible for TRO until the first payment is received;
The debt will not be referred to TRO as long as payments are made according the agreement.
Send the installment payment to:
pay online using the information provided in the pre-offset notice, or
the address shown on the Payment Stub form attached to the pre-offset notice, or
as a last resort, the remittance address (MATPSC, P. O. Box 3430, Philadelphia, PA 19122-9985) if the debtor does not have the form.
Record the name and claim number on the remittance payment to ensure proper posting for the beneficiary.
Upon default of one or more installment payments, the debt will be referred to Treasury for collection, where it will remain until the debt is satisfied.
The debtor may subsequently offer to resume regular installment payments. The payments will be accepted and applied towards the debt, but TRO will not be deactivated until the debt is paid in full.
For instructions on adding the installment agreement G TAC, on the SSR, see SI 02220.025B.2,SM 01311.235, and MS 00304.008).
A debtor may object to collection of the debt for two reasons:
They object to SSA's determination the debt is past due and legally enforceable.
They protest the fact or amount of debt.
If a debtor objects to collection of the debt, follow these procedures:
General policy
Under the law authorizing TRO, a debtor has the right to object to the collection of a debt on the basis that all or part of the debt is not past due or not legally enforceable, see SI 02220.012B and SI 02220.012C. These types of protests require submission of evidence to rebut SSA's findings. However, there are some situations in which an effective protest to collection is based on only the debtor's current statement and information in the claims folder.
Debtor objects and an external collection review is requested
If the debtor objects the collection, advise the debtor SSA must receive any evidence supporting the objection within 60 days from the date of the pre-offset notice.
Examples of evidence that could rebut SSA's determination that a debt is past due and legally enforceable include:
Copies of checks (front and back), money orders, and receipts showing payments that reduced or eliminated the debt;
A waiver approval notice;
A waiver or reconsideration request (but no SSA determination regarding that request);
A report that the debtor is deceased; or
Bankruptcy documents showing the debt was discharged or a bankruptcy petition is pending.
NOTE: This list is not all-inclusive. SSA must evaluate any evidence submitted by the debtor on a case-by-case basis.
Debtor submits evidence
If an objection to collection is made:
Accept any evidence the debtor submits.
Input appropriate suspend billing code on the UOSD screen, if necessary (see MS 00304.006).
Obtain:
a statement from the debtor that explains their reason(s) for objection to collection of the debt (e.g., Statement of other person, Form SSA-795). Do not obtain an SSA-561-US.
the claims folder, if available (see SI 02220.012D.4 in this section).
additional information if needed from the debtor prior to making a decision.
Review the evidence to determine if the debt is still past-due and legally enforceable as defined in SI 02220.012Band SI 02220.012C.
If yes, and the case can be adjudicated without additional information, send a notice to the debtor explaining why the debt is collectible (in whole or in part).
Notify the debtor of the final decision
Delete the suspend billing code by completing the MSSICS Update Sequence Data (UOSD) screen (see MS 00304.006).
If evidence to support the objection to collection of the debt is received after 60 days from the date of the pre-offset notice:
SSA will accept and review the evidence.
The debt remains in the TRO program unless evaluation of the evidence proves the debt is not past-due and legally enforceable.
IMPORTANT: Since a review to determine if a debt is past due and legally enforceable is not an initial determination, do not include any appeal language in the decision notice.
If a debtor protests the fact or amount of a debt, obtain an SSID query (see SM 01601.000).
If there is no indication that a request for review is pending, explain the time period to appeal the overpayment determination has expired and; therefore, the determination is final.
If good cause for extending the time limit is established, process the request as timely filed (see SI 04020.020).
If the debtor indicates they have evidence that refutes SSA's records, explain the debt will be referred to Treasury unless we receive the evidence within 60 days from the date of the pre-offset notice.
When the evidence is received follow SI 02220.012E.6.a ,in this section.
If a debtor alleges non-receipt of the overpayment check(s) or direct deposit payment(s), obtain an SSID query or Q query.
If the query shows no record of non-receipt of the payment(s) in question, proceed as follows:
If the debtor had a representative payee, explain that we sent the payment(s) to the payee and there is no indication the payee did not receive the payment(s).
If there was no representative payee, explain that our records did not show any evidence of a non-receipt allegation at the time the initial overpayment notice was sent.
If the debtor insists that we provide a photocopy of the check(s) in question,
Explain that we will investigate but our system will refer the debt to Treasury for offset.
We will repay any erroneous offset if our investigation supports the non-receipt allegation.
To process the non-receipt allegation for a check follow GN 02406.130 and for a direct deposit payment GN 02406.007 . DO NOT MAKE a suspend billing code input.
If the date of the alleged missing check is more than 12 months in the past, see GN 02401.901 through GN 02401.920 for processing limited payability non-receipt cases.
If the investigation shows a copy of the check is not available, presume the debtor received the check. We will determine the overpayment occurred and the debt remains subject to collection.
If the debtor makes a compromise offer, process in accordance with existing instructions in SI 02220.030 and sensitive instructions SI 02220.031.
If SSA agrees to the offer, stress that payment must be received by us before the 60-day due process period expires or we will report the debt to TOP.
If a debtor alleges never receiving the initial overpayment notice, proceed as follows:
Request from the debtor
a statement regarding non-receipt of the notice, and
their current address and telephone number.
Provide the address and telephone number of the FO that services the debtor.
Forward the material to the FO annotated "Necessary Action TOP/Credit Bureau Case Do Not Backlog."
Explain to the debtor that TRO will continue to apply unless we can confirm their allegation.
a statement regarding non-receipt of the notice
Request the claims folder if not currently available, in the FO as the result of a folder review request (see SI 02220.012E.4 in this section),
Review the claims folder to determine if the notice was returned as undeliverable.
If the claims folder is in the FO as the result of a folder review request check for an undeliverable notice, see SI 02220.012E.4 .
Not returned undeliverable
If there is not evidence to support the debtor's allegations, advise the debtor accordingly (by telephone, if possible):
Explain that since there is no evidence the notice was returned as undeliverable by the post office, we must proceed on the assumption the notice was received,
Document the folder with any debtor contact information.
Returned undeliverable
If returned undeliverable, verify we did not mail a subsequent notice.
Subsequent notification
If we mailed a subsequent notice, advise the debtor (by telephone, if possible) of the date we sent the new notice.
No subsequent notification
If we did not mail a subsequent notice, the debtor has the right to a full administrative review process.
Therefore,
Send an initial overpayment notice to the debtor's current address, and overlay the old notice date with the new notice date using the UOSD screen in Direct SSR Update (see MS 00304.006).
If the debtor is in the FO, give them the initial overpayment notice.
If there is a disposition code on the SSR (e.g., DB, DC, DM, or M TAC), delete the old disposition code by completing the MSSICS Add/Change/Delete Overpayment Decisions (UODC) screen to avoid an excess decision (see MS 00304.007).
The new notice date will overlay the old and an unresolved overpayment will be computed.
The above action will delete the debt from the TRO program until such time the debt becomes delinquent and meets all TRO selection criteria.
For a report of death, follow this procedure:
If the FO/TSC is informed the debtor is deceased:
Obtain proof of death as required by GN 00304.001.
Input the death report via the Death Information Processing System (DIPS).
Post the following information to the SSR
passing details, and
the debt is no longer collectible (if appropriate).
If the PC is informed the debtor is deceased;
Obtain proof of death as required by GN 00304.001
Input the death details using the Stop Offset (TRSCO) screen.
Access to the TRSCO screen is requested from the Debt management Menu (DMMU) function number 12 - Treasury Offset Menu (TRMU) screen. This input will delete the debtor from TOP (see MS 01114.002 and MS 01114.003).
Conduct any estate development in accordance with SI 02220.045.
If the debtor alleges a bankruptcy petition is pending or the debt was discharged in bankruptcy, obtain a copy of the petition or discharge order.
Pending bankruptcy petition
Input the allegation via the UOSD screen (see MS 00304.006 and SM 01311.421) selecting BANKRUPTCY DECISION PENDING (and the system will build a suspend billing indicator of L).
Process the petition or discharge order in accordance with SI 02220.040.
Bankruptcy discharge
Review a copy of the discharge to confirm the SSA debt has been discharged,
If YES:
Select CHANGE on the Add/Change/Delete UODC screen in Direct SSR Update (see MS 00304.007).
Change the decision, if present, to an UNCOLLECTABLE (see MS 00304.008) (N/NT TAC) decision to prevent any further collection activity (see SM 01311.280).
If a suspend billing code is present, delete the suspend billing code using the UOSD screen (see MS 00304.006).
If NO:
The SSA debt is not listed on the discharge. Make no system input.
Process the case in accordance with SI 02220.040.
SSA will receive some inquiries after certification of cases to Treasury or after actual offset has occurred. In these situations, certification to Treasury may have been an incorrect action. This section explains how to handle specific post-offset and post-certification inquiries.
If a debtor alleges they filed a protest or requested waiver but never received a decision, proceed as follows.
Obtain an SSID query.
If there is a pending waiver, an appeals code or suspend billing code posted, but no decision made and released, a determination must be completed (see SI 04070.010B)
Follow these steps:
Step 1 - address the refund.
Refund any amount offset by Treasury via A-OTP (see SM 01901.001). This is known as an Agency Refund.
Notify Treasury of the refund.
Input the Agency Refund using the Correct Offset Amount (TRCA) screen by
accessing the Debt Management Menu (DMMU)
selecting function number12-Treasury Offset Menu (TRMU) screen (see MS 01114.005).
Resolve the overpayment caused by the A-OTP with a Z TAC by
completing the UOPD on the Direct SSR Update screen, and
for a terminated record, select INCORRECT OVERPAYMENT;
for payment status N, select UNCOLLECTIBLE to post an N TAC (see MS 00304.008).
Step 2 - Develop the missing protest by looking for:
an SSA-632-BK,
a letter from the debtor or their representative, or
a Form SSA-795 in FO records or in the claims folder (see SM 01201.205 through SM 01201.235 for SSI folder retrieval instructions).
Step 3 - Process the waiver or protest in accordance with GN 02250.002.
If the waiver is approved, see MS 00304.007G and MS 00304.007H and:
change the waiver request to a waiver approval by completing the Direct SSR Update Waiver (UOWV) screen and
delete the suspend billing code, if present.
If the waiver is not approved:
Document the waiver denial by changing the waiver request to a waiver denial by completing the UOWV screen (see MS 00304.009).
Request a refunds of the overpayment.
If the debtor cannot refund the overpayment, request the debtor make installment payments.
If the debtor cannot make installment payments, add a DB or DC TAC by selecting UNWILLING/UNABLE TO REPAY decision on the UOPD screen (see MS 00304.008).
IMPORTANT: The FO processes all TRO refunds via Automated One Time Payment (A-OTP) (see SM 01901.001).
If the waiver was previously denied as an unfavorable reconsideration or waiver decision:
Advise the debtor that since the issue is resolved, TRO was appropriate.
Provide debtor with a copy of the waiver decision, if requested.
Do not refund any amounts offset by Treasury.
If there are no records available but the debtor still indicates a prior protest was filed,
Develop the allegation by looking for an unprocessed SSA-632-BK, letter or SSA-795 in FO records or in the claims folder.
If found, follow SI 02220.012E.1.a.
If none found, advise the debtor the TRO was appropriate and do not refund any amounts offset by Treasury.
If a request for waiver is received, proceed as follows:
Obtain an SSA-632-BK in accordance with current instructions in GN 02250.002.
Input the request for waiver by completing the UOWV screen in Direct SSR Update (see MS 00304.009).
If TRO recouped the entire debt (i.e., the debt balance is zero), proceed as follows:
Follow GN 02250.002 to process the waiver.
Consider a waiver on the entire overpayment amount during development.
Advise the debtor that refund of the amount offset will be made only if the waiver is approved.
If the waiver is approved (partially or fully), process the refund as in SI 02220.012E.1 in this section.
Request the DMS PC to remove the refund from the SSR, if necessary.
If TRO partially recouped the debt, proceed as follows:
Consider waiver on the full overpayment amount.
Refund any paid amount due via A-OTP if waiver is approved (partially or fully). Refund any amount offset by Treasury. Process the refund as in SI 02220.012E.1 in this section.
When a request for installment payments is received, proceed as follows:
If an installment agreement was negotiated prior to certification and payment was made in accordance with that agreement but Treasury offset still occurred, proceed as follows:
Refund any amount offset by Treasury via A-OTP (see SM 01901.001). This is known as an Agency Refund and we must notify Treasury about the refund. Input the Agency Refund using the Correct Offset Amount (TRCA) screen which is requested from the Debt Management Menu (DMMU) function number 12-Treasury Offset Menu (TRMU) screen (see MS 01114.005).
Resolve the overpayment caused by the A-OTP. Complete the Direct SSR Input Overpayment Decisions (UOPD) screen by selecting INCORRECT OVERPAYMENT (Z TAC for terminated records) or UNCOLLECTIBLE (N TAC for RIC G records). See MS 00304.008.
Add an installment agreement decision (G TAC) by completing the UOPD screen selecting RECOVER BY INSTALLMENTS. (See MS 00304.008)
If the request is made after certification, proceed as follows:
Establish the agreement on the SSID per SI 02220.025.
Advise the debtor that the debt will remain in TRO until it is completely recovered. Explain that SSA will not refund any offset amount paid (unless excess collection, see SI 2220.012F.6)
Excess collections occur when the total amount of voluntary payments and offsets exceed the debt amount (see SM 01310.415 and SM 01310.420). 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 offset for the full amount of the debt. This causes the system to compute an excess decision (see SM 01311.634).
Refund the excess collection to the TRO debtor using existing instructions for A-OTP (see SM 01901.001).
If the offset caused the excess collection, process the refund as in SI 02220.012E.1 in this section.
If the voluntary remittance caused the excess collection, repay the excess to the debtor but Do Not Input an Agency Refund.
When couples file joint tax returns and the party who is not an SSA debtor wants to receive their portion of the refund, advise the person to the local IRS office at 1-800-829-1040. This is known as an “injured spouse claim” which IRS alone can adjudicate. Advise that any refund must be made by IRS, not SSA.
No systems input is necessary.
If the debtor alleges a bankruptcy petition is pending or the debt was discharged in bankruptcy:
obtain a copy of the petition or discharge the order.
Input the allegation via the UOPD screen (see MS 00304.008 and SM 01311.220) selecting BANKRUPTCY to post a MS TAC to the SSR.
If the debtor alleges the debt has been discharged in a bankruptcy judgement, ask the debtor to submit a copy of the discharge. Process as follows:
If the SSA debt has been discharged,
select CHANGE on the Add/Change/Delete UODC screen in Direct SSR Update (see MS 00304.007)
change the decision (including MS TAC) if present, to a UNCOLLECTIBLE (see MS 00304.008) (N TAC) decision to prevent any further collection activity (see SM 01311.280). If a MS TAC is present, change the MS TAC to an N TAC to prevent further collection activity.
If the SSA debt is not listed on the discharge, process the case in accordance with SI 02220.040.
Undeliverable External Collections notices the United States Postal Services (USPS) cannot deliver are handled differently than other returned SSA items.
Most of these undeliverable notices are handled by the mail room in PC7 ODO by scanning the barcodes on the notices using the TRUN screen (see MS 01114.008). If scanning is not possible or the notices are returned to another location, the notices are input using the TRRN screen (see MS 01114.009).
An undeliverable pre-offset notice is recorded on the ECO Master (see MS 01114.007) and will stop any referrals to Treasury, credit bureau reporting, and Administrative Wage Garnishment.
If referral has already been made, an update is sent to Treasury to remove the debt from TOP. ECO will request an address from the Address Verification Contractor (see SI 02220.012A.4 in this section).
Following are case examples of common post-offset and post-certification situations.
A debtor contacted us in September and provided documents they believed to prove the debt does not exist. In November, the FO advised them that their case was reviewed, and the overpayment does exist. The debtor has taken no further action until contacting us in early February to say their rapid refund was refused.
Explain that our referral to Treasury for collection was proper. If there is a balance after the Treasury offset and the debtor now wishes to pay that balance via full refund or negotiate an installment agreement, we will accept it. We will not return the offset funds to the debtor unless the total repaid funds exceed the amount of the overpayment, or the debtor requests waiver which is subsequently approved.
A debtor calls us in March complaining that Treasury informed them $500 of their refund was offset to repay a debt to SSA. They claim never to have received the pre-offset notice.
The TOP query (see MS 01114.007) shows an undeliverable notice posted on March 5. Explain both the TRO process and the existing overpayment to the debtor. Also explain that we received the returned notice from the post office too late to stop the offset, but we will take action to refund the money withheld by Treasury if the debtor wishes it. If the debtor wants the money returned, establish how they wish to repay. Tell the debtor we will refer their debt to Treasury again if they become delinquent in repaying.
The same situation in SI 02220.012G.2.a, except the TOP query (see MS 01114.007) does not have an undeliverable notice entry.
Explain that we have a record of all notices returned as undeliverable by the Postal Service and their notice was not returned. When the notice has not been returned, we must assume that it was delivered and proceed under the provisions for debt collection under TRO. Explain to the debtor that we must keep the money collected by Treasury unless the debtor can establish:
the debt does not exist; or
they are not liable for repaying the debt; or
recovery of the debt is waived; or
they provide clear and convincing evidence that the letter was never delivered.
The debtor may pursue any of these options, but no money will be refunded unless SSA reaches a decision in the debtor's favor based on the information they provide.
The Foster Care Independence Act of 1999 (FCIA) extends to the title XVI program all the debt collection authorities currently available for the collection of overpayments under the title II program. For information on title II collections by Administrative Offset, see GN 02201.031.
IMPORTANT:
In this section, the term “administrative offset” refers to the reduction or withholding of federal payments other than tax refunds. Although Tax Refund Offset (TRO) is a type of administrative offset, TRO procedures regarding title XVI debts appear in SI 02220.012.
Administrative offset is the reduction or withholding of federal or state payments that an individual receives in order to recover a delinquent debt owed by that person to the federal government. Various federal payments, such as travel, expense reimbursements, Office of Personnel Management (OPM) pensions, and federal contractor payments, as well as eligible state payments, which include state income tax refunds, are subject to administrative offset to recover certain past due title XVI overpayment debts.
OPM pensions are subject to a reduction of up to 25% of the net payment. Vendor payments such as federal contractor payments and travel and expense reimbursements, are subject to a reduction of up to 100% of the net payment until the overpayment is repaid.
SSA's automated systems select certain title XVI debts for recovery by administrative offset. All the following criteria apply:
The debtor must be alive;
The debtor is not eligible for Supplemental Security Income benefits;
The debtor was at least 18 years of age when the debt was incurred;
The debt must be $25.00 or more;
The debt must be delinquent (for the definition of the term “delinquent”see SI 02220.012B.2.);
The debt must be considered to be “unrecoverable” under regulations determined by the Commissioner of Social Security (for the definition of “unrecoverable”see SI 02220.013B.1 in this section).
Once a debt is selected for administrative offset, SSA must send the debtor a pre-offset notice. ECO retrieves a verified address for the debtor from an Address Verification Contractor (AVC).
If the AVC provides a good address, the pre-offset notice is mailed to that address.
If there is no good address from the AVC and the MBR or SSR address was updated more than a year ago, the AVC will be checked again in six (6) months. The pre-offset notice will be mailed once a good address is obtained.
For more information on handling undeliverable pre-offset notices, refer to GN 02201.030F in this section.
For more information on the selection, notification, and referral process, refer to GN 02201.029C .
The automated address request operation is a separate project from the address requests made by the Debt Management Systems (DMS). The automated operation has no impact on the DMS request.
The pre-offset notice informs the debtor:
A delinquent overpayment debt in a particular amount is owed;
SSA plans to:
refer the debt to Treasury for TOP, and
if applicable, conduct administrative wage garnishment, and
SSA will not take this action if, before the end of that 60-day period, the debtor
furnishes evidence showing the debt;
(all or part of the stated amount) is not owed or
SSA does not have the right to collect the debt; and
That the debtor may review and copy SSA's records about the debt.
SSA sends one notice to inform the debtor about TOP, TRO, administrative offset, administrative wage garnishment, and credit bureau reporting. The same repayment options and due process rights described in SI 02220.012A.4 are offered for credit bureau reporting and for all collection tools. (for credit bureau reporting of title XVI debts, see SI 02220.014 )
SSA considers a title XVI debt to be unrecoverable if it meets all the following conditions:
The RECOOP billing status is past due, or the debt has been written off as uncollectible (SSI overpayment sequence with a "DB" or "DM" TAC code, see SM 01311.200);
SSA has not entered into an installment agreement with the debtor within the past 30 days, or the debtor has failed to make any payment for forty five days;
No appeal or waiver is pending;
The debtor is a former recipient.
An SSI debt is unrecoverable when it meets the definition in SI 02220.013B.1. For purposes of the administrative offset program, a specific unrecoverable date is not required.
In these cases, the debtor has previously been given ample opportunity to dispute the overpayment and repay the debt. However, there are situations where the selection for TRO may be erroneous because SSA's records contain outdated or incorrect information.
Although the time period to request reconsideration of the overpayment determination has passed, under the TRO process, the debtor has the right to object to the collection of the debt on the basis that all or part of the debt is not past-due or not legally enforceable (see SI 02220.012B, SI 02220.012C, and SI 02220.012E.6 in this section). This section explains how to handle specific inquiries, protests, and allegations prior to certification and offset.
If a request for an explanation of the overpayment is received, use the SSID to provide an explanation of the overpayment. Keep explanations generic to the extent possible. For example: "Your were no longer disabled as of 05/24 and continued to received checks through 12/24."
Follow instructions in SI 02220.012D.1.a.
Follow instructions in SI 02220.012D.1.b.
Follow instructions in SI 02220.012D.2.
Follow the instructions in SI 02220.012D.3and SI 02220.012E.
Advise the debtor that administrative offset remains in effect until SSA receives a completed and signed SSA-632-BK (or its equivalent).
Follow the instructions in SI 02220.012D.4.
Follow the instructions in SI 02220.012D.5.
Follow instructions in SI 02220.012D.6.a.
Follow the instructions in SI 02220.012D.6.b.
Follow instructions in SI 02220.012D.7.
Follow the instructions in SI 02220.030 and sensitive instructions in SI 02220.031.
If SSA agrees to the offer, stress that payment must be received by us before the 60-day due process period expires, or we will report the debt to TOP.
Follow the instructions in SI 02220.012D.9.
Follow the instructions in SI 02220.012D.10.
Follow instructions in SI 02220.012D.11.
SSA will receive some inquiries after certification to Treasury or actual offset has occurred. In these situations, certification to Treasury may have been incorrect. This section explains how to handle specific post-offset and post-certification inquiries.
Follow the instructions in SI 02220.012E.1.
Follow the instructions in SI 02220.012E.2.
Follow the instructions in SI 02220.012E.3.
Follow the instructions in SI 02220.012E.4.
Follow instructions in SI 02220.012E.5.
Follow instructions in SI 02220.012E.6.
The Foster Care Independence Act (FCIA) of 1999 authorized SSA to report certain delinquent title XVI overpayment debts to credit bureaus.
In addition, the Fair Credit Reporting Act (FCRA) contains provisions on credit bureau reporting, including handling consumer disputes about information reported to credit bureaus by SSA and other credit reporting entities (for more information about consumer disputes, see SI 02220.014D.1 ).
Credit bureau reporting is the posting of a debt to an individual's credit record. SSA uses credit bureau reporting as a way of influencing a debtor to repay a title XVI debt.
SSA sends information about the debt and debtor to the national credit repositories, which are the largest holders of credit data. The credit repositories then provide the information to the smaller credit bureaus across the country. An SSA debtor could be denied a loan or credit based on the posting of an unrecoverable SSA debt on the credit report.
SSA's automated systems select certain delinquent title XVI debts for credit bureau reporting.
Credit bureau reporting occurs when the following criteria apply to the debt:
The debt must be delinquent for no more than 6 years and 6 months (for the definition of the term “delinquent”see SI 02220.012B ), and
The debt must be considered to be “unrecoverable” under regulations issued by the Commissioner of Social Security (for definition of the term “unrecoverable”see SI 02220.013B.1 ).
Each month, SSA's systems select title XVI debtors whose debts have reached unrecoverable status for credit bureau reporting.
If the debt has not yet been reported to the credit bureau, the presence of a K TAC would prevent it from being reported.
SSA sends an automated due process notices to the selected debtors, telling them that SSA intends to report their debts to credit bureaus. The notice tells the debtors that the following specific information will be reported:
Debtor's name, address and Social Security Number;
Date of birth;
Date the overpayment became delinquent (for definition of the term “delinquent” see SI 02220.012B.2 );
Date of last payment, if any; and
Past due balance of the overpayment.
SSA sends one notice to inform the debtor about TOP, TRO, administrative offset, administrative wage garnishment, and credit bureau reporting. The same repayment options and due process rights described in SI 02220.012A.4 are offered for credit bureau reporting and for all collection tools.
All ECO notices sent November 2015 or later will be stored in ORS. For all ECO notices sent prior to November 2015 you can view the ECO master query. For additional information on the ECO master query, see MS 01114.007.
If all criteria for credit bureau reporting continue to be met, SSA's systems report the debtor and debt information after the later of:
The expiration of 60 days from the date of the notice; or
The date on which SSA sends the debtor a decision on any request for review of the debt or waiver received during that 60-day period.
SSA is required to keep its debtor and debt information updated with the credit bureaus. SSA's systems perform the updates each month. SSA reports updated information such as repayments, changes of address and protests received after the debt is reported to the credit bureaus.
If a debtor becomes re-entitled and benefit withholding resumes, SSA's systems will automatically update the credit bureau with the collections and the most current debt balance.
Shortly after selecting the debtors, SSA sends the individual a notice about the planned actions(s). The notice informs the debtor:
That SSA plans to:
refer the debt to Treasury for Tax Refund Offset (TRO) or
refer the debt to Treasury Offset Program (TOP), and
That SSA will not take this action if before the end of that 60-day period:
the debtor pays the debt in full,
requests waivers, or
furnishes evidence showing:
they do not owe all or part of the stated amount or
The debtor may inspect and copy SSA's records about the debt.
Debtors will react to the 60-day due process notice in a variety of ways. This section provides the procedures for how to handle the debtor reactions most likely to occur after the due process notice is sent and before the debt is reported to the credit bureaus.
Follow procedure in SI 02220.012D.1.
Follow procedure in SI 02220.012D.3.
NOTE: If a waiver request is pending at the end of the 60-day due process period, the debt will not be reported to the credit bureaus.
Follow procedure in SI 02220.012D.4.
Follow SI 02220.012D.5 and SI 02220.025.
they object to SSA's determination the debt is past due and legally enforceable, or
protest the fact or amount of debt.
Protest involves request for review of the debt or the legality of collection
If the debtor wishes us to review these findings before we report the debt to the credit bureaus, we must receive evidence to support the allegations within 60 days from the date of the due process notice. For policy and procedure when the protest involves a request for review of the debt or the legality of collection, follow SI 02220.012D.6 .
Protest involves the fact or amount of overpayment or both
The 60-day due process notice telling the debtor about credit bureau reporting does not offer the right to request reconsideration of the fact, amount, or both of the overpayment. If the debtor still protests the fact or amount or both, follow the procedures in SI 02220.012D.6.b.
Follow procedure in SI 02220.012D.7.
If the debtor makes a compromise offer, process in accordance with existing instructions in SI 02220.030.
If SSA agrees to the offer, stress that we must receive payment before the 60-day due process period expires or we will report the debt to the credit bureaus.
Follow the procedure in SI 02220.012D.9.
Follow procedures in SI 02220.012D.10.
Follow procedures in SI 02220.012D.11.
Generally, inquiries and protests received after the debt has been reported to the credit bureaus will be updated when SSA's systems automatically pass current debt balance and last payment information to the credit bureaus. Once a debt has been reported, it will remain on the debtor's credit record (with a few exceptions as explained below).
Consumers have the right to dispute the accuracy of information about them reported to credit bureaus, including information reported by SSA. This will most likely occur after the debtor has received a copy of their report and sees that information reported by SSA has been posted to the report. The consumer can dispute either the amount or the fact of the debt. In some cases, consumers will dispute the accuracy by contacting the credit bureaus directly.
When the credit bureau is notified by the consumer of the dispute, it will contact SSA and request that we verify our records of the debt. The contact will occur via an online system called the Automated Consumer Dispute Verification (ACDV) system, which links the credit bureaus with SSA. (Currently, the ACDV process is handled by the NEPSC.)
Under the provisions of the Fair Credit Reporting Act, we have 30 days to respond to the dispute or the debt is deleted from the credit report. In most cases, SSA need only verify the fact or amount of the debt on the SSR and notify the credit bureau via the online program that the debt is correct as reported.
IMPORTANT: Do not process the consumer dispute as a request for reconsideration of the fact or amount of the debt. Requests for reconsideration of the fact or amount of the debt must be made directly to SSA and should be handled as described in SI 02220.012D.6.b.
If a debtor alleges that they filed a protest or requested waiver before or during the 60-day due process period but never received a decision, proceed as follows:
Follow the steps:
Step 1 - Develop the existence of a protest before or during the 60-day due process period.
Develop the protest by looking for a:
SSA-632-BK
letter from the debtor or their representative; or
Form SSA-795 in FO records or in the claims folder (for SSI folder retrieval instruction,see SM 01201.205 through SM 01201.235 ).
pending waiver or appeal request posted in the OPDD section of the SSR (for codes and definitions,see SM 01311.421 ).
If you find evidence a protest exists before or during the 60-day due process period, but no decision has been made and released, a determination must be completed (see SI 04070.010B). Continue to step 2.
If SSA finds:
No evidence of a protest or waiver filed, or
A collection decision (meaning waiver or protest denied) is reflected on the SSR
Then notify the debtor the reporting was correct.
Ask if the debtor wishes to file a new waiver request.
If yes - see SI 02220.014D.3 .
If no:
Advise the debtor that since the issue has been resolved, credit bureau reporting was appropriate.
Provide the debtor with a copy of the decision, if requested.
Do not have the debt deleted from the credit record.
Step 2 - If the protest request is not present on the SR, post the protest request to the SSR by completing:
Waiver - MSSICS Waiver (UOWV) screen (see MS 00304.009 and SM 01311.423) or
Appeal - MSSICS Appeal (UOAP) screen (see MS 00304.010 and SM 01311.423).
Continue to step 3.
Step 3 - Process the:
Waiver in accordance with GN 02250.002.
Appeal in accordance with SI 02220.017.
If the waiver is approved:
see MS 00304.007G and MS 00304.007H and
change the waiver request to a waiver approval by completing the Direct SSR Update Waiver (UOWV) screen.
Document the waiver denial by changing the waiver to a waiver denial by completing the UOWV screen (see MS 00304.009).
If the appeal is approved or denied:
Update the determination on the MSSICS Appeal (UOAP) screen, and
send a determination notice.
Step 4 - If the protest is approved - address the credit report
Inform the debtor the debt will be removed from the credit report, and
Contact an NEPSC Program Analyst by phone, or request assistance by email from the RO indicating the debt should be deleted from the credit record. The DMS will contact the SSA person with authority to delete the item from the credit record.
If the debtor contacts the processing center directly regarding an allegation of a pending waiver or protest before or during the 60-day due process period, forward the information to the FO as follows:
Refer a priority Modernized Development Worksheet (MDW) to the jurisdictional FO:
Request the FO to develop the allegation of pending waiver or protest.
Annotate the referral Necessary Action - Credit Bureau Case - Do Not Backlog.
The FO should follow the instructions in SI 02220.014D.2.a.
If a request for waiver is received after the 60-day due process period, and the debt has been reported to the credit bureau, the FO should proceed as follows:
Obtain an SSA-632-BK (see TC 26001.080 and TC 27040.025)
Advise the debtor that:
the waiver will be processed as soon as possible.
the debt will remain reported to the credit bureau until a decision is made.
if the debt is eventually waived, SSA will update the credit report to show a balance of zero.
If the debtor wants to repay the debt by monthly installments, to negotiate a reasonable monthly payment amount followSI 02220.025B.2 .
Advised the debtor:
the debt will remain reported to the credit bureau.
SSA will update the balance to reflect each recent payment.
For instructions on adding the installment agreement G TAC, on the SSR, see SI 02220.025B.2, SM 01311.235, and MS 00304.008).
If the debtor alleges a bankruptcy petition was filed and the debt was discharged, obtain a copy of the petition or discharge order.
If proof is received:
Complete actions in SI 02220.012D.11.
Inform the debtor the debt will be removed from the credit report.
Contact an NEPSC Program Analyst by phone or email the RO requesting the debt should be deleted from the credit record. The DMS will contact the SSA person with authority to delete the item from the credit record.