The following is an example of a case where the 100 percent withholding rule applies.
NOTE: The 100 percent withholding rule is not limited to DCN cases.
Mr. Jones alleges non-receipt of his June 2002 SSI check of $545.00. A replacement
check is issued. Treasury determines that he endorsed both checks, and an automated
SSI overpayment notice is sent explaining that we will begin withholding $54.50 per
month to recover the overpayment through check adjustment. Several weeks later, the
DO receives from Treasury a “check package” which has photocopies of both checks cashed
by Mr. Jones. The DO sends a manual Notice of Planned Action (NPA) explaining that
we have made a determination that the overpayment created by cashing two SSI checks
was the result of willful misrepresentation of a material fact. The NPA further explains
that because of willful misrepresentation, we will recover the overpayment by withholding
100 percent of the SSI check (or the remaining OP amount if less) from the MM/YY SSI