The Debt Collection Improvement Act of 1996 (DCIA, P.L. 104-134) provided for the establishment of the Treasury Offset Program (TOP).

TOP is a centralized, government-wide delinquent debt matching and payment offset program administered by the Department of the Treasury (Treasury). This program enables Treasury to collect delinquent debts owed to the Social Security Administration (SSA) by offsetting federal payments due to a debtor. TOP credits SSA with the amount collected and SSA automatically updates its records with the most recent TOP-related information.

TOP's delinquent debt matching and payment offset system results in a type of collection called an “Administrative Offset.” To collect SSA's debts, TOP performs the following types of Administrative Offsets:

1. a. 

   Tax Refund Offset (TRO) - TOP reduces or withholds federal income tax refunds to recover delinquent title II and title XVI debts. The TRO program continues to operate under its own regulations and has its own policy (for the title II TRO policy, see GN 02201.030 and for the title XVI TRO policy, seeSI 02220.012 ).

2. b. 

   Other Administrative Offset - TOP reduces or withholds other payments, which include federal employee travel advances and travel reimbursements, State payments, OPM retirement, salary, and social security benefits to collect “unrecoverable” title II and title XVI debts. The use of other Administrative Offset is covered under regulations separate from TRO, and has its own policy (for title II procedures, seeGN 02201.031 and for title XVI procedures, seeSI 02220.013 ).

SSA's External Collection Operation (ECO) is a system that selects and maintains debts that we send to the Treasury (Fiscal Service) Offset Program (TOP). ECO selects debtors from the Recovery of Overpayments, Accounting and Reporting (ROAR) master file for title II and the Supplemental Security Income Record (SSR) for title XVI who meet the criteria for TRO, TOP, Administrative Wage Garnishment (AWG), credit bureau referral, or other Administrative Offset. For additional information regarding ECO, see SM 00610.040 .

1. a. 

   After selecting the debtors, ECO sends each individual a notice about the planned action(s). The notice informs the debtor that:

• •

  He or she owes a debt for a particular amount;

• •

  SSA plans to refer the debt to Treasury for TRO or TOP or will 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 a waiver,

  • –

    furnishes evidence showing that he or she does not owe all or part of the stated amount, and SSA does not have the right to collect the debt.

• •

  He or she may review and copy SSA's records about the debt.

b. ECO identifies and automatically selects and sends the following types of pre-offset notices listed in SM 00610.040C.2. :

NOTE: 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 .

NOTE: 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.

SSA certifies debtors to Treasury if they continue to meet all requirements for TOP after the 60-day due process period. Once certified, debtors are eligible for offset.

SSA provides weekly automated updates to Treasury regarding any changes in the status of the debt and the debtor. The updates include events such as decreases in debt amounts and requests for waiver. The ECO Master Query attached to the MBR and SSR identifies pertinent information about the debt and debtor (for description of the ECO Master Query, see MS 01114.007 ).

If the TIN and name of the debtor matches the TIN and name on the payment, TOP automatically determines if an offset is allowed. If offset is allowed, TOP determines the amount of the offset and sends a notice of offset to the debtor.

Treasury notifies the debtor of the offset on or before the date the payment is normally due. This notice tells the debtor that Treasury offset the payment (in whole or in part) to repay a delinquent debt owed to SSA. Treasury's notice also provides the following information:

1. a. 

   SSA's claim account number on which the offset occurred;

2. b. 

   SSA's contact point and address; and

3. c. 

   SSA's telephone number, which is either the national 800 number or the phone number of the Debt Management Section handling the debt.

Treasury also notifies SSA of the offset. This is an automated notification update to the ROAR system for title II.

Treasury updates and maintains the delinquent debtor database to show the most current debt balance and other important information.

NOTE: Due to confidentiality concerns, Treasury does not divulge the source of the collection to the creditor agency.

The Omnibus Budget Reconciliation Act of 1990, Pub. L. No. 101-508, and the Cash Management Improvement Act, Pub. L. No. 102-589 of 31 USC § 3720A permit 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;

• •

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

• •

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

• •

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

• •

  The debt is $25 or more;

• •

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

• •

  The debt is past-due, and

• •

  The debt is legally enforceable.

Once SSA's system selects a debt 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).

• •

  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 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 months. The pre-offset notice will be mailed once a good address is obtained.

For 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 .

NOTE: The automated address request operation is a separate project from the address requests made by the Debt Management Sections (DMS). The automated operation has no impact on the Direct Management Sections requests.

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

• •

  The debtor owes a delinquent overpayment debt in a particular amount;

• •

  SSA plans to refer the debt to Treasury for TRO; and 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 that all or part of the stated amount is not owed 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.

NOTE: 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 CO master query, see MS 01114.007 .

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 (SSA-632-BK) in accordance with current instructions, Waiver basics in GN 02250.001 and Processing a waiver request in 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, when the SSA-632-BK is received, in the Protest Request screen (DRPF for FO and DRPT for TSC).

Do not delay recording the request once written documentation is received. Process in accordance with GN 02250.002.

• •

  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 allowed for the debtor to submit evidence.

• •

  If the debtor makes a request to a TSC or PC, 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 wishes to review the folder, you must obtain it.

If the FO has not conducted a folder review before the 60 days allowed for due process has expired, input “Explanation” to the Protest/Stop Recovery request (PC) screen (DRPR using code TC-23E).

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

Advise the debtor that the debt will remain eligible for TRO until we receive a payment; and the debt will not be referred to TRO 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 and the payments will not deactivate TRO.

Tell the debtor to send the installment payment(s) to the address shown on the “Payment Stub” form attached to the pre-offset notice or pay online using the information provided in 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, see MS 01106.014 .

If a debtor alleges non-receipt of the overpayment, obtain an MBR, ROAR and PHUS 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 to the payee and there is no indication that the payee did not receive the payment(s).

• •

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

• •

  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 non-receipt allegation. To handle the non-receipt allegation (these references apply to title II, title XVI and Black Lung payments), follow GN 02406.000. DO NOT make a ROAR input.

NOTE: If the investigation shows that a copy of the check is not available, presume that the debtor received the check. We will determine the overpayment occurred and remains subject to collection.

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 PC for action. (See GN 02215.185 for information on handling bankruptcy cases.) To process a notification of pending bankruptcy, for FO procedures seeGN 02215.190 and for PC procedures GN 02215.195 .

If the debtor alleges that the court discharged the debt in a bankruptcy judgment, ask the debtor 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 PC handles the case according 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 an Initial Waiver (23W), Recon Fact/Amount (23R), or Hearing (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 01114.005 .

   • •

     Look for an SSA-632-BK (Request for Waiver of Overpayment Recovery), 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.

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 filing prior to the protest or waiver or 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 Debt Management System 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 pre-certification protest or waiver or hearing.

     • –

       If the debtor wishes to file a new waiver, follow GN 02201.030E.2 in this section.

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. 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 of the entire overpayment amount.

   • •

     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 for recovery to defeat the purpose of amounts already recovered, the debtor must show evidence of going into debt to repay the overpayment.

   • •

     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, see MS 01106.014 .

   • •

     Advise the debtor that the debt will remain in TRO until it is completely recovered. Explain that SSA will not refund any offset monies (except for excess collection.

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 01114.003 .

Correct the MBR once the correct BOAN is determined perSM 00613.605 .

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.

Following are case examples of common post-offset and post-certification situation.

The Domestic Employment Reform Act of 1994 (DERA) authorizes the Social Security Administration (SSA) to collect certain title II debts by Administrative Offset. In addition, the Debt Collection Improvement Act of 1996 (DCIA) gives SSA permanent authority to use administrative offset.

IMPORTANT: In this section, the term “Administrative Offset” refers to the reduction or withholding of Federal or State payments other than tax refunds. Although Tax Refund Offset (TRO) is a type of Administrative Offset, separate TRO procedures regarding title II overpayment debts appear in GN 02201.030.

Administrative Offset is the reduction or withholding of federal or state payments to a person to recover a delinquent debt owed by that person to the federal government.

Various federal and state 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 title II 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.

NOTE: For title XVI debts collected by administrative offset of Federal payments, see SI 02220.013.

SSA's automated systems select certain title II debts for recovery by Administrative Offset. The following criteria must all apply:

1. a. 

   The debtor was 18 years or older when the debt was incurred

2. b. 

   The debt must be “unrecoverable” under regulations determined by the Commissioner of Social Security;

3. c. 

   The debt must be owed by a person who is no longer entitled to receive Social Security benefits;

4. d. 

   The debtor must be alive;

5. e. 

   The debtor's beneficiary own account number (BOAN) must be on the Master Beneficiary Record (MBR);

6. f. 

   The debt must be $25.00 or more; and

7. g. 

   The debt must be delinquent (see GN 02201.030B.2 for the definition of “delinquent”).

NOTE: Due to systems limitations, SSA does not select beneficiary identification code (BIC) “C” debtors for Administrative Offset of payments other than Tax Refund Offset (TRO).

SSA considers a title II debt to be unrecoverable if it meets all the following conditions:

1. a. 

   The Recovery and Collection of Overpayment Process (RECOOP) billing status is past-due or later, or the debt has been written off as uncollectible;

2. b. 

   SSA has not entered into an installment agreement with the debtor, or the debtor has failed to make any payment for two consecutive months;

3. c. 

   No appeal/waiver request is pending; and

4. d. 

   The debtor is a former beneficiary.

An SSA debt is unrecoverable when it meets the definition in GN 02201.031B.1. For purposes of the Administrative Offset program, a specific unrecoverable date is not required.

Follow the instructions in GN 02201.030D.1.

If a request for an explanation of Administrative Offset is received, explain that as indicated in the pre-offset notice, Congress passed a law that allows Treasury to withhold unrecoverable SSA overpayments from federal and state payments due the overpaid person.

Follow instructions in GN 02201.030D.2.

Follow instructions in GN 02201.030D.3.

Follow instructions in GN 02201.030D.4.

Follow instructions in GN 02201.030D.6.

Follow the instructions in GN 02215.100 through GN 02215.125. If SSA agrees to the offer, stress that payment must be received by us before the 60-day process period expires or we will report the debt to TOP.

Follow the instructions in GN 02201.030D.8.

Follow the instructions in GN 02201.030D.9.

Follow instructions in GN 02201.030D.10.

Follow instructions in GN 02201.030E.1.

Follow instructions in GN 02201.030E.2.

Follow instructions in GN 02201.030E.3.

Follow instructions in GN 02201.030E.4.

Follow instructions in GN 02201.030E.5.

Follow instructions in GN 02201.030G.2.

The Domestic Employment Reform Act of 1994 (DERA) authorizes the Social Security Administration (SSA) to report certain delinquent title II overpayment debts to credit bureaus. The Debt Collection Improvement Act of 1996 (DCIA) gave SSA permanent authority to continue credit bureau reporting.

In addition, the Fair Credit Reporting Act (FCRA) contains provisions on credit bureau reporting, including provisions on handling consumer disputes about information reported to credit bureaus by SSA and other credit reporting entities, see GN 02201.032D.2 .

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 II or title XVI debt.

SSA sends information about the debt/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 II debts for credit bureau reporting. The following criteria apply:

1. a. 

   The debtor was 18 years old when the debt was incurred;

2. b. 

   The debt must be considered to be “unrecoverable” under regulations issued by the Commissioner of Social Security (for definition of the term “unrecoverable debt”see GN 02201.031B );

3. c. 

   The debt must be owed by a person who is no longer entitled to receive Social Security benefits;

4. d. 

   The debtor must be alive;

5. e. 

   The debtor's beneficiary own account number (BOAN) must be on the Master Beneficiary Record (MBR),

6. f. 

   The debt must be $25.00 or more, and

7. g. 

   The debt must be delinquent for no more than 6 years and 6 months (for the definition of the term “delinquent”see GN 02201.030B.2.).

   NOTE: Based on these criteria, SSA does not report beneficiary identification code (BIC) "C" debtors to credit bureaus.

Each month, SSA's systems select title II debtors who reach unrecoverable status for credit bureau reporting.

SSA sends due process notices to the selected debtors, telling them that SSA intends to report their debts to credit bureaus. The notices tell the debtors that the following specific information will be reported:

1. a. 

   Debtor's name, address, and Social Security Number;

2. b. 

   Date of birth;

3. c. 

   Date the overpayment became delinquent (for definition of the term “delinquent”see GN 02201.030B.2.);

4. d. 

   Date of last payment, if any; and

5. e. 

   Past due balance of the overpayment.

If all criteria for credit bureau reporting continue to be met, SSA's systems report the debtor and debt information after the later of:

1. a. 

   The expiration of 60 days from the date of the notice, or

2. b. 

   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 new information such as repayments, changes of address, and protests received after the debt is reported to the credit bureaus.

Follow procedure in GN 02201.030D.1.

Follow procedure in GN 02201.030D.2.

Follow procedure in GN 02201.030D.3.

Follow procedures in GN 02201.030D.4.

Follow instructions in GN 02201.030D.6.

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

Follow the procedure in GN 02201.030D.8.

Follow procedures in GN 02201.030D.9.

Follow instructions in GN 02201.030D10.

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 credit 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 Northeastern Program Service Center (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 MBR or ROAR or both 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 GN 02201.030D.5.

If a debtor alleges they filed a protest or requested waiver before or during the 60-day due process period but never received a decision, obtain a ROAR query and proceed as follows:

• •

  If there is an Initial Waiver (23W) or Recon Fact/Amount (23R) posted before or during the 60-day due process period, but no decision has been made and released:

  • –

    Notify the Debt Management Program Analyst that the debt should be deleted from the credit report.

  • –

    Tell the debtor that the debt will be removed from the credit report.

  • –

    Follow instructions in GN 02201.030E.1.

• •

  If ROAR reflects an unfavorable reconsideration or waiver decision before or during the 0-day due process period:

  • –

    Advise the debtor that since the issue has been resolved, credit bureau reporting was appropriate

  • –

    Do not delete the debt from the credit record.

• •

  If there is no ROAR posting but the debtor still indicates a prior protest/waiver was filed:

  • –

    Look for an unprocessed SSA-632-BK, letter or SSA- 795 in FO records or in the claims folder.

  • –

    Also look in DMS REMARKS or the Special Message field for indications that a waiver was requested but not posted to the system. If you find evidence of a prior protest, proceed as follows:

    • •

      Notify the Debt Management Program Analyst that the debt should be deleted from the credit report.

    • •

      Tell the debtor that the debt will be removed from the credit report.

    • •

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

If the records review fails to produce any evidence of a protest or waiver filed before or during the 60-day due process period:

• •

  Notify the debtor that the reporting was correct.

• •

  Ask if the debtor wishes to file a new waiver request. If so, follow GN 02201.030D.3.

If a request for waiver is received after the 60-day due process period and the debt has been reported to the credit bureau, proceed as follows:

• •

  Obtain an SSA-632-BK in accordance with current instructions in GN 02250.002.

• •

  Advise the debtor that the waiver will be processed as soon as possible, but that the debt will remain reported to the credit bureau.

• •

  If the debt is eventually waived, SSA will update the credit report to show a balance of zero.

• •

  Establish the agreement per GN 02210.180.

• •

  Advise the debtor the debt will remain reported to the credit bureau but that SSA will update the balance to reflect the most recent repayment.

• •

  If debtor alleges a bankruptcy petition was filed and the debt was discharged, request evidence of proof of the discharge.

  • –

    If proof is received, inform the debtor the debt will be removed from the credit report. (See GN 02215.190 - GN 02215.235).

  • –

    If the debt is discharged without exception, call to notify or email the Debt Management Program Analyst that the debt should be deleted from the credit report.

If a situation is a problem case, the PCs and FOs identify and document it. When you identify a problem case, proceed as follows:

After obtaining all required documentation, send problem cases as quickly as possible to the appropriate Regional Office (RO). Do not send directly to OFPPI. Transmit the material via fax, if possible. Otherwise, proceed as follows:

PC/FO action

Proceed as follows with the documentation using in-house mail:

• •

  Scan and email materials with subject “TOP PROBLEM CASE” to the RO, Program Operations and System, RSI/SSI Program Branch, RSI Operation Section.

  NOTE: FO employees should scan material, enter a vHelp request, and upload the material to vHelp for RO analysis. PC employees do not have access to vHelp.

RO action

Proceed as follows with the documentation:

• •

  Review the documentation, clarify any outstanding issues and determine if the situation is a problem case.

• •

  If it is a problem case, send the information to OFPPI. Transmit the material to OFPPI via email, if possible. Use the OPRP Inquiry Site to fill in the form, and upload the document.

• •

  If you cannot email or submit the material through the OPRP Inquiry Site, send it in an envelope (clearly marked “TOP Problem Case—DO NOT OPEN in the Mailroom”) to:

    

  OFPPI Office of Payment and Recovery Policy
  
  6401 Security Boulevard
  
  2-A-10 East High Rise
  
  Baltimore, Maryland 21235-6401

• •

  If you need additional PC documentation prior to sending the case to OFPPI, send the material to the Operations Analysis Staff in the PC, ask the PC to obtain the data, send it directly to OFPPI, and inform the RO.

If IRS notifies OFPPI when it completes its investigation, OFPPI and the RO take the following actions:

OFPPI:

• •

  Notifies the RO, which is controlling the problem case.

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  Advise of any necessary action.

RO will:

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  Coordinate notice preparation if we must notify the debtor or other individual.

• •

  Tailor the language to address each situation.

NOTE: Do not use pre-developed or “canned” language because it is not conducive to problem cases.

• •

  Ensure that SSA takes any corrective action, such as refunding the offset amount.

NOTE to PC and FO: Inform the RO if the IRS notifies the person when a problem is resolved.

If possible, send the RO a copy of the IRS notice.

Jack Spratt erroneously used his daughter's SSN when filing his federal income tax return. His daughter, Pat, was overpaid as a student because she ceased full time attendance and did not notify SSA. SSA referred Pat's debt to TOP for offset. Because Mr. Spratt used his daughter's SSN on his form 1040, TOP offset his tax refund to recover Pat's delinquent debt. In February, Mr. Spratt contacted SSA to ask why TOP offset his tax refund. Since SSA cannot resolve the issue without information from Treasury and IRS regarding Mr. Spratt's tax return, the situation is a problem case.

Mr. August Hickey, a former disabled wage earner, owes SSA a delinquent debt of $1,294. He also defaulted on a $1,500 student loan made by the Department of Education (DOE). Both agencies referred their debts to TOP for offset. In March, TOP offset Mr. Hickey's entire tax refund of $1,525. Since Mr. Hickey had received a pre-offset notice from Treasury, but not DOE's pre-offset notice, he was unaware that DOE had referred the defaulted student loan. Confused, he contacted SSA to ask why SSA withheld his entire refund of $1,525 to recover SSA's debt of $1,294. This is a problem case because SSA must have IRS verification of the offset amount.

SSA notified Dwight Randle, an overpaid ex-student beneficiary, that SSA referred his $543 debt to TOP for offset. When the offset occurred, Treasury notified Mr. Randle that they withheld SSA's debt of $593. Since SSA's records showed a debt for $543, intervention is required to resolve the issue and refund the excess amount withheld. The situation is a problem case.

SSA referred Susan Smith's delinquent debt to TOP for offset. The offset occurred in March. The debt met all SSA's criteria for referral to TOP and SSA correctly referred the debt. Susan and her attorney contacted her Congressperson for support questioning the legal enforceability of the offset. The Congressperson wrote a letter to the Commissioner, asking why SSA applied the offset and if it was a legal action on our part. Although the Congressional inquiry requires special processing, the situation is not a problem case. SSA has all the information it needs in its records and can respond to the inquiry without help from Treasury or IRS.