In most situations, a beneficiary will request a waiver when there is an outstanding overpayment balance (e.g. before we have collected all of the overpaid monies). If there is a question as to whether the beneficiary is seeking waiver of just the outstanding balance, or whether the beneficiary is seeking waiver of the entire overpayment amount, clarify the issue.

Example: Daniel Mason was overpaid $5,000. We recovered $2,000 of the overpayment through full benefit withholding. The overpayment balance is now $3,000. He files a waiver request stating the overpayment was not his fault and he now cannot afford to repay the overpayment. We will make a waiver determination based on the $3,000 overpayment balance.

Example: Daniel Mason was overpaid $5,000. We recovered $2,000 of the overpayment through full benefit withholding. The overpayment balance is now $3,000. He files a waiver request stating the overpayment was not his fault and he cannot afford to repay the $5,000 overpayment. We will make a waiver determination based on the entire $5,000 overpayment.

If the beneficiary requests a waiver after we have recovered the entire overpayment (via benefit withholding, installment payments, refund, tax refund offset (TRO), etc.), make a determination based on the entire overpayment amount.

Example: Emma Williams was overpaid $600. We recovered the entire overpayment through full benefit withholding for March and April. She files a waiver request in May stating the overpayment was not her fault and she is unable to meet her living expenses. She used a credit card to offset what we withheld to pay her rent and utilities. We will make a waiver determination based on the entire $600 overpayment.

In order to consider whether collection of the overpayment will defeat the purpose of the program, the overpaid beneficiary must show that debt was incurred to repay the overpayment, or, that all current income (including benefit payments) is needed to meet living expenses and is unable to repay the overpayment. For more information regarding defeat the purpose, see GN 02250.100.

Example: Daniel Mason was overpaid $5,000. He repaid the entire overpayment through full benefit withholding. He files for waiver stating the overpayment was not his fault, and he is unable to meet his living expenses. In addition, he alleges he lost his home. We will make a waiver determination based on the entire $5,000 overpayment.

If we have approved the waiver because recovery is against equity and good conscience, take the following action with the submitted refund:

• •

  Return the refund to the beneficiary; and

• •

  Document the remarks screen in the Debt Management System (DMS).

Determine whether accepting the offered refund would still defeat the purpose of the act