Identification Number:
GN 02406 TN 99
Intended Audience:See Transmittal Sheet
Originating Office:DCBFM OFPO
Title:Failure to Receive a Check/Payment - Title II, Title XVI
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part GN – General
Chapter 024 – Checks
Subchapter 06 – Failure to Receive a Check/Payment - Title II, Title XVI
Transmittal No. 99, 10/24/2022

Audience

PSC: BA, CCRE, IEBA, PETE, SPIKE, TSA, TST;
OCO-OEIO: BET, BIES, BTE, CCRE, CR, EIE, FCR, PETL, RECOVR;
OCO-ODO: BET, BTE, CCE, CR, CST, CTE, CTE TE, DSE, PAS, PETE, PETL, RCOVTA, RECOVR;
OCO-OEO: CST, LCST;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OFPO

Effective Date

Upon Receipt

Background

This control provides instructions for using and processing the FMS-1133 and FMS-3858. Additionally, this control provides instructions for double check negotiation overpayments and forgery determination reconsideration requests.

Summary of Changes

GN 02406.160 Description and When to Use Department of the Treasury Forms FMS-1133 and FMS-3858

Subsection B - We added a sentence explaining the FMS-1133 mailing process. We also mentioned that FMS-1133 claims package is made available in the Treasury Check Information System (TCIS). We restructured this section, removing the bullets, and made edits for ease of reading.

Subsection C - We edited the second paragraph which explains how to locate a returned credit from Treasury in reclamation cases. We added and "IF THEN" chart to clarify instruction for posting the credit via the SSA-4208. We revised the note in this section regarding manual follow up with Treasury for physical checks.

Subsection D - We added an "IF THEN" chart to describe appropriate actions for processing nonreceipt allegations prior to the claimant's death.

Subsection E- We changed the title of this section to "Limited Payability Criteria"

Subsection F- We changed the title of this section to read "Treasury request for additional signature samples." We removed the language concerning the K-stop process. This process is obsolete. We also condensed the language in surrounding paragraphs regarding signature sample requests.

Subsection G - We edited the first paragraph and added an "IF THEN" chart to describe actions taken when Treasury sends a Claims Disposition Notice (CDN).

Subsection H- We added a "STEP ACTION" chart to describe the mailing process for the FMS-1133. We removed instructions for photocopying and retaining the FMS-1133. According to Operations, this process is obsolete.

 

 

GN 02406.310 Request for Reconsideration of DCN Overpayment or Forgery Determination

Throughout this policy we made the following changes:

We removed language concerning the 1719B, Technicians use the Modernized Supplemental Security Income Claims System (MISSICS) in place of the 1719B process.

We removed language concerning the L-TAC, The L-TAC is obsolete.

We removed language concerning the Secret Service. Treasury no longer uses the Secret Service in the forgery process outlined in these POMS.

We removed language concerning printing and storing the FMS-1133 for 1 year. According to Operations this process is obsolete.

We removed the acronym CP&R. This systems has been replaced by the Treasury Check Information System (TCIS).

Subsection B- We renamed this section "Reconsideration Process"

Subsection B.3- We added a lead in sentence in the beginning of this section.

Subsection B.4- We combined the bullets in this section into a paragraph.

Subsection C.3- We added a lead in sentence in the beginning of this section.

Subsection C.4- We added a lead in sentence in the beginning of this section.

Subsection D.2.- We added a lead in sentence in the beginning of this section.

Subsection G- This section is now titled "Treasury's Action on Appeal of Forgery Determination"

Subsection H- This section is now titled "Action When 'Second Appeal' Determination is Returned"

 

 

 

 

GN 02406.160 Description and When to Use Department of the Treasury Forms FMS-1133 and FMS-3858

This section informs the technicians about the purpose of the forms used or requested by the Department of the Treasury (Treasury), Bureau of Fiscal Service (Fiscal Service). We use these forms to request information or assistance and to resolve non-receipt check claims filed by beneficiaries, recipients and representative payees for payments issued by the U.S. Government.

A. Claims Document (FMS-3858)

The FMS-3858 is Treasury’s claims document cover sheet for the form Claim Against the United States for the Proceeds of a Government Check (FMS-1133) and check photocopies. Treasury produces this form upon receipt of a non-receipt or stop payment input. Treasury posts the form to the Treasury Check Information System (TCIS) for printing, if necessary. This form contains essential information about the check:

  • Check number,

  • Symbol,

  • Amount,

  • Date,

  • Payee's name, address,

  • Stop code input by SSA, and

  • Treasury's status code response

IMPORTANT: Before forwarding any completed packages to Treasury, make sure the FMS-3858 and FMS-1133 match the check photocopy by comparing check number, symbol, amount, and date.

B. Claim Against the United States for the Proceeds of a Government Check (FMS1133)

The FMS-1133 is a computer-generated form, consisting of two pages (one sheet, front and back), attached behind the FMS-3858. It contains specific questions pertaining to the receipt and cashing of the missing check. Treasury generates this form when a check payee alleges non-receipt on a negotiated check in A, B, C, G, and F-stop situations. Treasury mails the package directly to the beneficiary, recipient, or representative payee. Treasury also posts the package to the Treasury Check Information System (TCIS). The beneficiary, recipient or representative payee completes this form when they allege non-involvement in the negotiation of the original, courtesy, replacement, or settlement check. The form contains specific questions pertaining to the receipt and cashing of the missing check.

1. Identifying a nonreceipt issue

Interview the beneficiary, recipient or representative payee and review the appropriate master records to determine if the allegation is a true non-receipt.

If the beneficiary, recipient, or representative payee recognizes the signature as his or her, own:

  • Do not send to Fiscal Services.

  • Initiate overpayment recovery if appropriate.

  • Explain to the beneficiary, recipient or representative payee that because they recognize the signature on the check, the non-receipt claim is invalid, and we cannot submit the claim to Treasury for processing.

For additional information, see SM 00609.105 How to determine if a non-receipt claim is valid.

2. Non-receipt of a check issued 12 months ago or less

Treasury generates a claims package containing the FMS-3858, FMS-1133, and check photocopy when the check in question is 12 months old or less. The claims package is available on TCIS for printing until Treasury receives a completed package from the beneficiary, recipient, or representative payee.

If the claimant returns the form to the Field Office (FO) review the form for completeness carefully checking responses to questions 1through 6. Ensure the claimant signs and dates both sides of the form. Treasury uses this form as the basis to conduct a forgery determination. Treasury reclaims money from the bank if the signature indicates that the beneficiary, recipient, or representative payee may not have written the signature.

NOTE: Treasury will not process a photocopy of an FMS-1133 for a non-receipt claim. For Limited payability cases, see GN 02401.905.

C. Manual follow up on physical checks

If the check is still outstanding, the technician should input a non-receipt action to have Treasury issue a courtesy disbursement check, if the check is less than 12 months old. If the check is more than 12 months old, follow limited payability procedures in GN 02401.905.

Treasury will credit the amount of payment back into the SSA trust fund when the beneficiary or recipient returns a payment. The technician must exhaust all efforts to locate the credit for the physical check. This includes examination of all queries and documents in the processing centers or field offices. Additionally, access the Treasury Check Information System (TCIS) to obtain the necessary information concerning the credit. Treasury reclaims the money from the death of the beneficiary or payee. When the technician exhausts all efforts to locate the credit for the physical check, call Fiscal Service at (855) 868-0151 for assistance. A TCIS or Treasury contact will provide you with status and credit information. Use the information to post the credit via the SSA-4208 (Limited Payability Determination). Take the following actions:

IF

THEN

Treasury does not provide a document number for the SSA-4208...

Input all sevens (7) in this field.

Treasury states the credit is still outstanding...

Determine if the accounts receivable system (ARS) still has a control for the credit. If so, note no action necessary (NAN) for the inquiry.

The investigation is old...

Treasury may have to recreate the record. When first contacting Treasury on older cases, Treasury may advise they have no record on their system. However, if payment history update screen (PHUS) shows the stop payment successfully processed (the Treasury department status code (TDSC) is not an exception code), explain the case is old and the record may have to be recreated. You must allow Treasury three workdays to recreate the record before calling back. Treasury will not contact you, recreated records stay online about two weeks, so it is important for you to follow up with Treasury after that three-day time frame.

If a physical, document is required (such as a photocopy of check)...

Call Treasury and request that they mail the document directly to you. Expect the document within 10 to 15 workdays. Request Treasury to place your name and module number on the outside of the envelope to ensure timely delivery, establish a 30-day diary.

NOTE: It is never appropriate to use direct input as a method of follow-up on any successfully processed investigation. Contact Treasury at (855-868-0151) for assistance. Treasury will not supply information based upon the SSN. You must have the check symbol and check number available prior to making the call. If the investigation was within the last year, Treasury may provide the information immediately.

D. Nonreceipts alleged prior to death of claimant

Take the following actions for nonreceipt allegations prior to the death of a claimant.

IF

THEN

Completion of an FMS-1133 is necessary in a non-receipt claim but the payee is now deceased...

Have the form completed by an individual eligible to receive an underpayment. For more information on underpayments see GN 02301.030 and SI 02101.003 SSI Underpayment Due Individual Deceased-General.

No individual is eligible to receive an underpayment, and we need a forgery determination,...

Write "N/A" in the blanks for questions 1-8 on the FMS-1133 and sign your name and position title on the bottom of the FMS-1133.

 

Obtain signature samples from the date of the check, such as gasoline receipts, cancelled personal checks, tax returns, and attach them to the FMS-1133 with a note explaining why the payee (deceased) does not sign the FMS-1133. Send to the address in GN 02406.160H in this section.

IMPORTANT: If completion of the FMS-1133 is not possible review GN 02406.300

E. Limited Payability Criteria

If the case meets the criteria in GN 02401.901, and the limited payability claim is appropriate:

  1. 1. 

    Follow the procedures outlined in Handwriting Analysis Needed on a Limited Payability Case GN 02401.910.

  2. 2. 

    Review the form for content using criteria in the sample GN 02406.160 in this section.

F. Treasury request for additional signature samples

Occasionally, Treasury requires additional signature samples when deciding on a case . These circumstances might include:

  • Limited payability case where check in question was endorsed several years ago. For more information see, Handwriting Analysis Needed on a Limited Payability Case GN 02401.910.

  • Claimant who filed non-receipt is now deceased and unable to complete an FMS-1133 (Although the FMS-1133 can be completed by a family member, signature samples are still necessary).

Obtain this information from a review of the claims folder if available, from around the time of the issue date of the check. Additionally, ask for copies of cancelled checks or other examples of the claimant's signature from the pertinent time period. Call Treasury's general number (855-868-0151) and explain when a problem occurs. If necessary, TCIS can provide check images.

 

G. Claims disposition notice (CDN)

The CDN is a computer-generated form and does not have a form number. Based on the information on the FMS-1133, the CDN provides the results of a forgery determination. The CDN may also indicate if Treasury needs more information for the forgery determination (e.g. additional signature samples from around the time the check was issued). Additionally, the CDN shows Treasury’s recommended action on the case (e.g., “Claim valid but settlement not appropriate based on your recertified or non-entitlement stop. Treasury will credit your account when refund is received.”). Review the CDN to determine necessary actions. See the below chart for guidance.

IF

THEN

Treasury needs additional information…

Respond promptly so the investigation can be completed.

 

Treasury determines that forgery was involved…

Review records to determine whether claimant is due a payment.

Forgery was NOT involved and no protest to Treasury's determination within the 60-day appeal period GN 02406.310, and DCN is involved…

 

Start overpayment recovery.
  • NOTE: Treasury sends a CDN to the beneficiary, recipient, or representative payee.

H. Procedure for mailing completed forms

When a beneficiary, recipient, or payee comes into the field office for assistance with completing the FMS-1133, take the following actions

STEP

ACTION

1

After providing assistance, instruct the beneficiary, recipient, or payee to mail the original FMS-1133 to Treasury at the address provided. Do not mail to the PC or CO.

2

Instruct the payee to use the envelope Fiscal Service provides or use the following address:

Department of the Treasury

Bureau of the Fiscal Service

P.O. Box 51318

Philadelphia, PA 19115.

3

Diary for 90 days for return of the CDN from Treasury

4

Obtain status of the case through TCIS or call Treasury at 855-868-0151.

GN 02406.310 Request for Reconsideration of DCN Overpayment or Forgery Determination

A. Introduction

When an individual protests a DCN overpayment by asserting that he/she did not receive or did not cash both checks, it is appropriate to have that individual file a request for reconsideration (see GN 03102.100, SI 04020.000). A claimant must request reconsideration within 60 days of the date of the notice of initial determination. If the claimant requests reconsideration within the first 30 days from the date of the overpayment notice, recovery will not begin. If the claimant requests reconsideration anytime from the 31st day until the 60th day, overpayment recovery may have begun but will be suspended until a forgery determination is received from the Department of the Treasury. Any monies collected will NOT be returned at this point. Adjudication of a request for reconsideration filed after the 60 days must be supported by good cause and overpayment recovery will be suspended while awaiting a forgery determination from Treasury. See GN 03101.020. If claimant wishes to appeal the DCN overpayment but does not do so within the 60-day reconsideration period, nor is good cause established, SSA will send the FMS-1133(s) to Treasury for a forgery determination BUT WILL NOT CEASE OVERPAYMENT RECOVERY. It is to SSA’s advantage to have Treasury determine whether forgery is a factor or not so the money can be reclaimed if appropriate; however, because the protest was neither timely nor met good cause, overpayment recovery is not ceased.

B.  Reconsideration Process

1. Forms Needed to Request Reconsideration

A “request for reconsideration” is handled differently in title II and title XVI DCN overpayment situations:

a. Title II

A signed SSA-795 should be obtained from the beneficiary stating that he/she requests reconsideration on the DCN overpayment. This takes the place of the SSA-561-U2 that is not used in this situation because it produces a workload in the PC for the Reconsideration Reviewer that cannot be resolved until the forgery determination is made by Treasury.

b. Title XVI

A signed SSA-561-U2 should be obtained from the recipient before processing a request for reconsideration on a DCN overpayment. In addition, if overpayment recovery has already begun, it will not be suspended unless and until the signed form is received.

2. Reconsideration Requested Within 30 Days of Overpayment Notification

If a request for reconsideration is filed with SSA within 30 calendar days of the date on the overpayment notice, overpayment proceedings will not begin if:

  1. a. 

    The claimant asserts that he/she did not cash both checks, or

  2. b. 

    The claimant maintains he/she never received the either or both check(s).

3. Reconsideration Requested Anytime During the 60-Day Period

If a request for reconsideration falls anytime during the 60-day period, take the following actions.

  1. a. 

    When a claimant receives an initial overpayment notice for a DCN and protests that overpayment, new policy dictates that a signed SSA-795 to this effect is required for title II and can be signed in the FO or sent to the claimant for signature with a return envelope addressed to the PC or FO. For title XVI, a signed SSA-561-U2 is required and must be received before overpayment recovery ceases.

    If available, the claims package can be sent out with the appropriate form to be completed and returned to either the PC or FO, as appropriate.

    IMPORTANT: If claims package/reconsideration forms are mailed to the claimant, ask him/her to contact SSA if the package is not received within 5 days.

  2. b. 

    Claimant must complete and return an FMS-1133 for each check in question to SSA (1) within 30 days of receiving the package, or (2) after notification that the package is available (e.g., FO/TSC notifies claimant by telephone that package is in the FO and claimant states that he/she wishes to come into the FO to complete the form) or SSA will reinstate the overpayment collection.

  3. c. 

    Establish a 30-day diary for the return of the completed claim form to SSA. If the FMS-1133 is returned within 30 days, overpayment recovery will not begin. If the completed claims package is received between the 31st day and the 60th day, overpayment recovery will be suspended but any monies already collected will not be returned.

  4. d. 

    Inform the claimant that Treasury will not take any action on the allegation without a completed claim form FMS-1133 for each check in question.

  5. e. 

    The completed claims package is forwarded to Treasury for a forgery determination.

4. Claimant Requested Reconsideration After 60 Days from the Overpayment Notification

Reconsideration must meet the good cause criteria found in GN 03101.020. If the request meets the good cause criteria, process according to GN 02406.310.

5. Claimant Requested Reconsideration After 60 days from Overpayment Notification and GOOD CAUSE NOT ESTABLISHED

Since the request for reconsideration was not filed within the 60-day period and did not meet the good cause criteria, reconsideration is not appropriate. However, SSA will accept the completed FMS-1133 form(s) and send them to Treasury for a forgery determination. In addition,

  • DO NOT CEASE OVERPAYMENT RECOVERY.

  • If Treasury determines that forgery was involved, Treasury will reclaim the money and return it to SSA. SSA will refund any monies withheld from the claimant during the recovery period.

  • If Treasury determines that no forgery was involved, overpayment recovery is either already underway or has been completed.

C. Procedure - FO/PC/TSC Action When The Beneficiary Or Recipient Protests The Overpayment (Within 60 Days Of Overpayment Letter) Caused By The Negotiation Of The Original And Courtesy Disbursement Or Replacement Check

1. FO/800# Answering site Initial Action

a. Title II

  • Input protest/stop recovery (TC23 3 Alleged Non-Receipt of Check to ROAR) to prevent recovery of the overpayment (see MSOM DMS 006.019 and MSOM DMS 006.020). This will set up a 90-day diary.

  • Notify the servicing PC via priority MDW that the claimant has filed a protest of the overpayment. (PC now has jurisdiction.)

b. Title XVI

The TSC will:

  • Notify the servicing FO via priority MDW that recipient is protesting the DCN overpayment.

  • Mail the SSA-561-U2 to the recipient for signature with a return envelope addressed to the FO of jurisdiction.

  • Do not suspend recovery based on the telephone request.

The FO will:

  • After receipt of the completed SSA-561-U2, input an MT-TAC (see GN 02406.001–Glossary of Nonreceipt Terms) in the CO field to suspend recovery. Set up a manual diary for 90 days. Keep SSA-561 with copy of the claims package(s).

2. PC Initial Action

  • Obtain a signed SSA-795 stating that the beneficiary requests reconsideration of the DCN overpayment.

  • Keep the SSA-795 with copy of the claims package.

  • If title II collection efforts have not been suspended, input protest/stop recovery (TC 23R to ROAR).

3. FO/PC Action to Process the Reconsideration/Obtain a Forgery Determination

The FO or PC takes the following processing actions.

  1. a. 

    Have claimant come into the FO and sign an SSA-795 (title II)/SSA-561-U2 (title XVI) or mail the appropriate form to the claimant with a return envelope addressed to the FO/PC which states he/she wishes to protest the DCN overpayment (can be sent with the FMS-1133 package). Have claimant call if claims package is not received within 5 days.

  2. b. 

    If claims package is not available at the time the SSA-795 or SSA 561-U2 are sent out, have the claimant come into the FO or mail the blank FMS-1133 and check photocopy to the claimant with a return envelope addressed to the FO/PC. Instruct the claimant that the FMS-1133 must be returned in 30 days or recovery will recommence. Have claimant call the FO if the claims package is not received within 5 days.

  3. c. 

    Diary for 30 days plus 5 mailing days for return of the FMS-1133 package.

  4. d. 

    If the claimant wishes to come into the FO to complete the FMS-1133, the FO should diary for 30 days from the moment of notification to the claimant that the FMS-1133 is available.

  5. e. 

    If a completed FMS-1133 is not received in SSA within 30 days plus 5 mailing days, begin/recommence overpayment recovery.

  6. f. 

    Review the responses on the FMS-1133 (see GN 02406.160) before sending the package to Treasury.

  7. g. 

    Diary for 90 days for the return of the CDN from Treasury. Check the Treasury Check Information System (TCIS) or call Treasury's general number at 855-868-0151 see if forgery determination is complete.

4. Treasury Determines That Forgery Is NOT Involved (Claimant Endorsed the Check[s])

Treasury and SSA takes the following actions when forgery is not involved.

  1. a. 

    DT will send a CDN to SSA. This should be received within 90 days of Treasury receiving the FMS-1133.

  2. b. 

    DT will send a denial letter to the claimant specifying the basis of the denial. The letter will contain the opinion of the handwriting expert and will provide Treasury's return address and instructions in case the claimant wants to provide additional evidence and appeal the forgery determination within 60 days.

  3. c. 

    Diary for 90 days for possible appeal of Treasury's forgery decision. Treasury will send a CDN if appeal is filed.

  4. d. 

    Do not resume recovery until either the 60-day appeal period has elapsed, or Treasury makes a final determination on an appeal that forgery is not involved.

  5. e. 

    After the appeal period has expired, FOs should ask their Regional Office (RO) and PCs should call their Operations Analyst to query TCIS to see if claimant appealed forgery determination. Information can also be obtained by calling Treasury at 1-855-868-0151. The technicians should call this number for all check claims, payment, and post-payment inquiries. Also check remarks on MBR/SSR, OR

  6. f. 

    If the 60-day appeal period plus 30 additional days have elapsed and no appeal has been filed (i.e., no CDN received), resume overpayment recovery.

5. If Appeal Is Not Filed, Resume Recovery of Overpayment

a. Title II

  • Send the reconsideration notice. Use the sample notice in NL 00703.119 minus the SSA-662 with a paragraph stating that the Treasury determined that forgery was not involved.

  • Input a transaction code of 27 to ROAR (reconsideration denial).

b. Title XVI

  • Use a dictated notice stating that Treasury determined that forgery was not involved.

  • Use MSSICS to remove the MT-TAC.

6. PC/FO Action When Treasury Determines Forgery Is Involved

There is no overpayment. Credit will be returned to SSA via OPAC (Online Payment and Collection system). Also:

  1. a. 

    PC/FO: Send a reconsideration determination to the beneficiary/recipient. Do not include waiver language.

  2. b. 

    PC: Title II - Input a transaction code of 25 to ROAR (reconsideration approval).

  3. c. 

    FO: Title XVI - Credit will post to the SSR causing an excess decision. Delete the L-TAC entered earlier to suspend collection.

D. Procedure - FO/PC/TSC Action When Reconsideration Requested After 60-day Period - Good Cause Not Met

The request for reconsideration cannot be taken/processed because it was not made within the allowable 60-day reconsideration period and the criteria for good cause were not met. However, it is to SSA’s advantage to have Treasury perform the forgery determination. If forgery is involved, Treasury will reclaim the money and return it to SSA. Therefore, the FMS-1133 should be completed by the claimant and sent to Treasury for a forgery determination. Unlike an “official” reconsideration situation, overpayment recovery is NOT ceased nor is there a requirement for the SSA-795 or SSA-561 (because this is not an official “reconsideration period”).

IMPORTANT: For Treasury to reclaim if forgery is involved Treasury MUST receive the completed claims package absolutely no later than 16 months after the issue date. Treasury must process the forgery claim and, if forgery is found, request reclamation from the bank before 18 months have passed since the issue date. It is important to get the claims package to Treasury as soon as possible to allow time for Treasury to resolve any obstacles, such as an illegible bank stamp on the back of the check (if this prevents reclamation, the check copy must be sent to the FRB for resolution).

1. FO/TSC Initial Action

a. Title II

Notify the servicing PC via priority MDW that the claimant wishes to complete/submit the FMS-1133 claim form for the check(s) involved.

b. Title XVI

Notify the servicing FO via priority MDW that the claimant wishes to complete/submit the FMS-1133 claim form for the check(s) involved.

2. FO/PC Action to Process the FMS-1133 Package(s)

The FO or PC will take the following steps.

  1. a. 

    Review the responses on the FM-1133 (see GN 02406.160) before sending the package to Treasury.

  2. b. 

    Send the original to Treasury for a forgery determination.

  3. c. 

    Diary for 90 days for the return of the CDN.

3. FO/PC Action if Treasury Determines That Forgery Is NOT Involved

The FO or PC will take the following steps.

  1. a. 

    Claimant cannot appeal Treasury's ’ determination since the requirements for a request for reconsideration were not met.

  2. b. 

    Since overpayment recovery was not stopped while claim was at Treasury, recovery will continue until full recovery is made.

4. FO/PC Action if Treasury Determines That Forgery Is Involved

The FO or PC will take the following steps

  1. a. 

    Stop overpayment recovery.

  2. b. 

    Refund any monies collected while case was being processed at Treasury.

E. Process - Department Of Treasury Action

Once Treasury receives a completed FMS-1133 from the claimant, it conducts a forgery investigation to determine if the claimant signed the check, cashed the check, gave someone else permission to cash the check, or benefited from or participated in all or part of the proceeds of the original check. Treasury will consider all information in the file. In addition:

1. Notification of Forgery Determination

Treasury notifies the claimant of the forgery determination by letter and sends SSA the claims disposition (CDN).

2. Forgery Is Involved

If the determination is in favor of the payee (forgery involved), Treasury initiates reclamation of the money from the presenting bank. Once the money is reclaimed Treasury credits this amount back to SSA.

IMPORTANT: All CDNs should contain a final disposition advising SSA as to whether the check(s) was forged. FOs should contact the RO and PCs should contact their Operations Analyst for any CDN containing a vague disposition (e.g., “Settlement at Agency’s Discretion”).

F. Procedure -- FO/PC Action When Beneficiary Or Recipient Protests Treasury's Forgery Determination

1. Title II

Input a transaction code of 23 to ROAR (protest to recovery action) if not already on the record.

2. Title XVI

Input an L-TAC if not already on the record, pending Treasury's forgery determination.

3. Protest of Forgery Decision

The claimant should contact Treasury directly to protest Treasury's s original forgery determination. The notice of the forgery determination will provide instructions for the payee to appeal the decision to Treasury. However, if the claimant contacts SSA for assistance:

  1. a. 

    Photocopy the letter at Exhibit L for claimant to complete.

  2. b. 

    Assist the claimant by providing check identification information (number, symbol, program, etc.).

  3. c. 

    Include as attachments any proof provided by the claimant to assist Treasury in its redetermination. DO NOT use the FMS-3864, Agency Recertification Followup, as a transmittal.

  4. d. 

    Mark the envelope “FORMAL PROTEST” and mail to:

    Department of the Treasury
    Bureau of the Fiscal Service
    Check Claims Branch
    Exception Inquiries Section-Appeal
    P.O. Box 51318
    Philadelphia, PA. 19115–6318

    Materials can also be faxed to Treasury at 202-874-8447.

4. Diary

Prepare a 180-day diary to control for CCB response.

G. Treasury's Action On Appeal Of Forgery Determination

1. Appeals - Second Review

Appeals will be handled by a Treasury claims analyst who did not participate in the initial investigation. Any handwriting comparison conducted on appeal will be made by a handwriting expert other than the person who provided the original opinion.

2. Second Determination Made

Once Treasury makes a second determination, they send a CDN to SSA and a letter to the claimant either affirming or reversing their original forgery determination.

3. Appeal Denied

If denied at this appeal level (Treasury maintains there was no forgery), the denial letter will inform the claimant that he/she may have the right to file a lawsuit in federal court with respect to the denial.

4. Judicial Review

The denial of an appeal, with respect to Treasury's forgery determination, is a final Treasury action. Judicial review of a determination is not permitted prior to denial of a timely appeal from a forgery claim.

5. ALJ Review

Since the existence of the overpayment is based on Treasury's determination that the check(s) was not forged, a Social Security ALJ is not likely to reverse Treasury's determination. However, claimants may still pursue further appeals with SSA based on the reconsideration denial.

H. Action When “Second Appeal” Determination Is Returned in the PC or FO

1.  Treasury Determines Check Was Not Forged

Take the following steps.

  1. a. 

    Send a notice of reconsideration to the claimant based on Treasury's ’s decision that check(s) was not forged. Explain that Treasury's forgery determination is final and binding.

  2. b. 

    Reinstate overpayment recovery. For title II, annotate PHUS via SSA-1257-U2 action code (AC-2) with the amount of the check. For title XVI, use MISSICS to remove the MT-TAC.

  3. c. 

    Recovery should begin COM+1.

2. DT Determines Check Was Forged

  1. a. 

    Send a reconsideration determination to the beneficiary/recipient.

  2. b. 

    For title II, prepare an SSA-1257-U2, AC-1 to null the event code 010 previously annotated to the PHUS record. Then input a transaction code of 25 to ROAR (reconsideration approval).

  3. c. 

    For title XVI, delete any manual diary set but leave the MT-TAC in place as recovery is inappropriate.

I. Procedure - Recording Reconsideration/Appeal Due Process Events

1. Background

Although the MBR and SSR indicate if a DCN has occurred in the preceding 2 years, neither title II nor title XVI has a dedicated query/field to indicate that a forgery determination has been requested, decided, appealed, denied, etc. The presence of this information is important to determining misuse/a pattern of reporting nonreceipt as well as providing a diary of due process events.

2. PC/FO:  In Order to Supplement Data Carried on the MBR/SSR, Enter the Following Information in Remarks or the Special Message Field

Remember that a title II protest can be recorded, and overpayment recovery ceased (if appropriate) as soon as the objection to the DCN overpayment is made. The title XVI protest should not be recorded, nor overpayment recovery ceased until the signed SSA-561 is received.

  • Claimant protests the overpayment resulting from the DCN and the date of the check(s) involved (Example: “MM/DD/YYYY Protest O/P of 11/03/97 CK”);

  • Date the FMS-1133 is sent to Treasury for a forgery determination (if known) (Example: “1133 Treasury MM/DD/YYYY”);

  • Treasury's decision on the forgery claim obtained from the claims disposition notice (Example: “MM/DD/YYYY No Forgery on 11/03/97 CK”);

  • Forgery claim denied and claimant protests the denial (Example: “MM/DD/YYYY protest Treasury denial”);

  • Beneficiary/recipient is true DCN abuser.  Add the phrase, “DCN Abuse - Input as C-stop until mm/yy” in the “RMKS” field on the SSR and/or “SPMSG” field on the MBR.  If additional DCN abuse occurs, the date should be changed to reflect the most recent occurrence of the abuse.

J. Process - Waivers

IMPORTANT: Double check negotiations should NOT be waived as they indicate an intention to commit fraud by falsely stating that the check was not received. Similarly, he $1000 waiver tolerance does not apply because the beneficiary or claimant is not “without fault.”

K. Exhibit

FORMAL PROTEST

 

 

 

DATE:               

TO:

FROM:

Department of the Treasury

Social Security Administration

FMS - CCB

(Local address)

Exception Inquiries Section

 

Appeals

 

P.O. Box 51318

 

Philadelphia, PA. 19115–6318

 

Fax: 202-874-8447

 

The following claimant is filing a formal protest on the forgery determination made by your office.

CLAIMANT’S NAME   ­______________________________                                              

 

CLAIMANT’S CURRENT ADDRESS ____________________________                                         

 

 

SSN  _____________________________                                      

 

PROGRAM (check one): ____   SSI (Title XVI) or  _____  SSA (Title II) _____

 

CHECK NUMBER __________ CHECK SYMBOL  ____________                       

 

CHECK DATE__________ CHECK AMOUNT ____________

 

ADDITIONAL INFORMATION   __________________________                                    

 

 

 

CLAIMANT’S SIGNATURE ________________________________                                              

Please contact the person named below if you have any questions.

 

 

 

___________________

 

(Employee’s Name)

 

___________________

 

(Position)

 

 

 

(Telephone)

Attachments ( )

 

 


GN 02406 TN 99 - Failure to Receive a Check/Payment - Title II, Title XVI - 10/25/2022