Effective Dates: 08/04/2026 - Present Previous | Next

TN 63 (08-26)

GN 02215.115 FO handling of compromise offers

A. Introduction

Be alert to possible fraudulent situations (check for fraud indicator on ROAR).

Resolve any question of fraud before the compromise offer is accepted or rejected and advise the debtor that there may be a delay before a decision is made.

Be alert to prior compromise settlements. Check the history data on the ROAR printout (or PC microfiche) for a TC-53 (with a CAT of 75) removing part of the debt and a TC-30 or TC-31 deleting the remainder.

A prior compromise settlement does not preclude acceptance of the current offer, but must be considered in assessing the reasonableness of the offer.

B. Policy

Develop financial circumstances when:

  • •

    The debt is $20,000 or less but the offer is less than 80% of the debt amount, or

  • •

    The debt exceeds $20,000.

If unusual circumstances exist, develop with respect to the point involved.

For example, financial information from the debtor indicates expenses exceed income and there are no cash assets, yet the debtor offers to compromise a $7,500 debt by repaying $2,000. Explain how the debtor will get the money.

C. Procedure

1. Overpayment $2,000 or less

The CR has the authority to accept or reject the offer without further review.

  1. a. 

    Accept an offer of 80 percent of the debt amount (without financial development).

  2. b. 

    Accept an offer which is at least 60 percent of the debt if:

    • •

      The full debt cannot be recovered within 1 year by benefit withholding, and

    • •

      Financial circumstances support the 60 percent offer.

  3. c. 

    Accept an offer of less than 60 percent of the debt when financial evidence establishes that the debtor is unable to pay more and the amount offered is reasonable.

When financial information is needed in the above situations, obtain the information from the debtor in accordance with GN 02210.030B Document the Debt Management System (DMS) REMARKS (RMKS) screen.

2. Overpayment exceeds $2,000 but is not over $20,000

The CR, with the concurrence of an operations supervisor (or higher), has the authority to accept or reject the offer.

  1. a. 

    Accept an offer which is at least 80 percent of the debt amount.

  2. b. 

    Accept an offer which is at least 60 percent of the debt if:

    • •

      The full debt cannot be recovered by benefit withholding within 3 years, and

    • •

      Financial circumstances support the 60 percent offer.

  3. c. 

    Accept an offer of less than 60 percent when:

    • •

      The financial evidence establishes that the individual is financially unable to repay more than the amount offered, and

    • •

      The amount offered is reasonable.

Obtain financial information in accordance with GN 02215.115C.1. and document the RMKS screen accordingly.

3. Overpayment exceeds $20,000

Develop and document financial circumstances (see above) and forward the offer to the appropriate PC (the PCOCS on the MBR). If the debtor refuses to provide financial information, advise the PC accordingly. The PC will prepare all notices.

4. Effectuating the FO decision

Notify the person in writing of the decision and, if the offer is accepted, when the compromise amount is due. (See NL 00703.140 or NL 00703.141 for sample notice language.)

Generally, the compromise amount is due in full within 30 days from the date of the notice. However, there could be circumstances which would require a different due date (e.g., the debtor has a certificate of deposit which will mature in 90 days.)

a. When the FO Accepts a compromise offer:

  • •

    Input the decision to the Record Compromise Decision (DRCD- MSOM DMS 006.012) screen.

  • •

    If the debt is greater than $2,000, a second level review is necessary via the Review Compromise Approval (DRCW - MSOM DMS 006.013)

    NOTE: Input to the above screen(s) will generate a TC53 to post the write-off amount to ROAR and set a PC diary for 30 days or the diary date if one is input. Once the decision is final, send the proper notice.

b. When the FO rejects a compromise offer

  • •

    Input the decision to the DRCD.

  • •

    Send the proper notice.

c. When payment is received in the FO

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202215115
GN 02215.115 - FO handling of compromise offers - 08/04/2026
Batch run: 08/04/2026
Rev:08/04/2026