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waive the aSSessment. Of interest, penalty charges and administrative COStS during the period. Of the Suspension. Suspension will be for an established time period and generally will be reviewed at least every Six months to enSure the continued propriety of the Suspension. DOJ approval is required to Suspend debts exceeding $20,000. Unless otherwise provided by DOJ delegations Or procedures, the Administrator refers requests for SuSpension of debts Of $20,000 to $100,000 to the United States Attorney in whose district, the debtor resides. Debt;S exceeding $100,000 are referred to the Commercial Litigation Branch, Civil Division, Department of Justice, for approval.

§ 13.30 Standards for suspension.

(a) Inability to locate debtor. The Administrator may SuSpend Collection. On a debt where he determines that the debtor Cannot be located presently but that there is a reasonable belief that the debtor Can be located in the future. (b) Financial condition of debtor. The Administrator may SuSpend Collection action. On a claim when the debtor Owns no Substantial equity in real Or perSonal property and is unable to make payment on the claim Or effect a Compromise but the debtor’s future financial prospects justify retention of the claim for periodic review, provided that: (1) The applicable Statute of limitations Will not expire during the period of the suspension, can be tolled or has Started running anew; (2) Future collection can be effected by Offset, notwithstanding the 10-year Statute Of limitations for administrative Offsets; Or (3) The debtor agrees to pay interest on the debt and suspension is likely to enhance the debtor’s ability to fully pay the principal amount of the debt with interest at a later date. (c) Request for waiver or administrative review—mandatory. The Administrator will Suspend collection activity where a Statute provides for mandatory waiver COnsideration Or administrative reView prior to agency Collection Of a debt. The Administrator will suspend EPA’s collection actions during the period provided for the debtor to request review or waiver and during the period

of the Agency’s evaluation of the reQuest. (d) Request for waiver or administrative review—permissive. The Administrator may SuSpend Collection activities on debts of $20,000 or less during the pendency of a permissive waiver or administrative review where he determines that: (1) There is a reasonable possibility that waiver will be granted and the debtor may be found not owing the debt (in whole or in part); (2) The Government’s interest is protected, if Suspension is granted, by the reasonable assurance that the debt can be recovered if the debtor does not preVail; Or (3) Collection of the debt will cause undue hardship to the debtor. (e) Refund barred by statute or regulation. The Administrator will ordinarily Suspend Collection action during the pendency of his consideration of a Waiver request or administrative reView where statute and regulation preclude refund of amounts collected by the Agency should the debtor prevail. The Administrator may decline to suspend Collection where he determines that the request for waiver or administrative review is frivolous or was made primarily to delay Collection.

Subport F.—Termindfion of Debts

§ 13.31 Termination—general.

The Administrator may terminate Collection actions and write-off debts, including accrued interest, penalty and administrative COStS, where the debt principal does not exceed $20,000. If the debt exceeds $20,000, EPA obtains the approval Of DOJ in Order to terminate further collection actions. Unless otherwise provided for by DOJ regulations Or procedures, requests to terminate Collection on debts in excess of $100,000 are referred to the Commercial Litigation Branch, Civil Division, Department Of Justice, for approval. Debts in excess of $20,000 but $100,000 or less are referred to the United States Attorney in whose judicial district the debtor Can be found.

§ 13.32 Standards for termination.

A debt may be terminated where the Administrator determines that:

(a) The Government cannot collect or enforce Collection of any significant sum from the debtor, having due regard for available judicial remedies, the debtor's ability to pay, and the exemptions available to the debtor under State and Federal law;

(b) The debtor cannot be located, there is no Security remaining to be liquidated, the applicable statute of limitations has expired, and the prospects of collecting by Offset are too remote to justify retention of the claim;

(c) The cost of further collection action is likely to exceed the amount reCOverable;

(d) The Claim is determined to be legally without merit; or

(e) The evidence necessary to prove the claim Cannot be produced Or the necessary Witnesses are unavailable and efforts to induce voluntary payment have failed.

Subport G–Referrols

§ 13.33 Referrals to the Department of Justice.

(a) Prompt referral. The Administrator referS to DOJ for litigation all Claims on which aggressive Collection actions have been taken but which Could not be collected, compromised, suspended or terminated. Referrals are made as early as possible, consistent with aggressive agency Collection action, and within the period for bringing a timely Suit against the debt Or. (1) Unless Otherwise provided by DOJ regulations Or procedures, EPA refers for litigation debts of more than $100,000 to the Commercial Litigation Branch, Civil Division, Department of Justice, Washington, DC 20530. (2) Unless otherwise provided by DOJ regulations Or procedures, EPA refers for litigation debts of $100,000 or less to the United States Attorney in whose judicial district the debtor can be found. (b) Claims Collection Litigation Report (CCLR). Unless an exception has been granted by DOJ, the CCLR is used for referrals of all administratively uncollectible claims to DOJ and is used to refer all offers of compromise.

Supbort H–Referrol of Debts to IRS for Tox Refund Offset

SOURCE: 59 FR 651, Jan. 5, 1994, unless otherwise noted.

§ 13.34 Purpose. This subpart establishes procedures for the Environmental Protection

Agency (EPA) to refer past—due debts to the Internal Revenue Service (IRS) for Offset against the income tax refunds of persons owing debts to EPA. It Specifies the Agency procedures and the rights of the debtor applicable to Claims for the payment of debts owed to EPA.

§ 13.35 Applicability and scope.

(a) This subpart inplements 31 U.S.C. 3720A, which authorizes the IRS to reduce a tax refund by the amount of a past-due legally enforceable debt owed to the United States. (b) For purposes of this Section, a past-due legally enforceable debt referable to the IRS is a debt, which is Owed to the United States and: (1) Except in the Case of a judgment debt, has been delinquent for at least three months but has not been delinQuent for more than ten years at the time the Offset is made; (2) Cannot be currently collected purSuant to the Salary offset provisions of 5 U.S.C. 5514(a)(1); (3) IS ineligible for administrative offset under 31 U.S.C. 3716(a) by reason Of 31 U.S.C. 3716(c)(2) or Cannot be collected by administrative Offset under 31 U.S.C. 3716(a) by the Agency against amounts payable to Or On behalf of the debtor by or on behalf of the Agency; (4) With respect to which EPA has given the taxpayer at least 60 days from the date of notification to present evidence that all Or part Of the debt is not past-due or not legally enforceable, has Considered evidence presented by Such taxpayer, if any, and has determined that an amount Of Such debt is past-due and legally enforceable; (5) Has been disclosed by EPA to a Consumer reporting agency as authorized by 31 U.S.C. 37.11(f), unless a conSumer reporting agency Would be prohibited from using such information by 15 U.S.C. 1681C, or unless the amount Of the debt does not exceed $100.00;

(6) With respect to which EPA has notified Or has made a reasonable attempt to notify the taxpayer that the debt is past-due and, unless repaid within 60 days thereafter, the debt will be referred to the IRS for offset against any Overpayment of tax;

(7) IS at least $25.00; and

(8) All other requirements of 31 U.S.C. 3720A and the Department of the Treasury regulations at 26 CFR 301.6402–6 relating to the eligibility of a debt for tax return Offset have been Satisfied.

§ 13.36 Administrative charges.

In accordance with $13.11, all administrative Charges incurred in Connection with the referral Of a debt to the IRS Shall be a SSessed On the debt and thus increase the amount Of the Offset.

§ 13.37. Notice requirement before offset.

A request for reduction of an IRS tax refund will be made only after EPA makes a determination that an amount is owed and past-due and provides the debtor with 60 days written notice. EPA’s notice of intention to collect by IRS tax refund offset (Notice of Intent) Will State:

(a) The amount Of the debt;

(b) That unless the debt is repaid within 60 days from the date of EPA’s Notice Of Intent, EPA intends to collect the debt by requesting the IRS to reduce any amountS payable to the debtor as refunds of Federal taxes paid by an amount equal to the amount of the debt, and all accumulated interest and Other charges;

(c) That the debtor has a right to present evidence that all or part of the debt is not past-due Or not legally enforceable; and

(d) A mailing address for forwarding any written Correspondence and a Contact name and phone number for any questions.

§ 13.38 Review within the Agency.

(a) Notification by debtor. A debtor who receives a Notice Of Intent has the right to present evidence that all or part of the debt is not past-due or not legally enforceable. To exercise this right, the debtor must:

(1) Send a written request for a review of the evidence to the address provided in the notice; (2) State in the request the amount disputed and the reasons why the debtOr believes that the debt is not pastdue or is not legally enforceable; and (3) Include in the request any documentS which the debtor wishes to be Considered Or State that additional information will be Submitted within the remainder of the 60-day period. (b) Submission of evidence. The debtor may Submit evidence showing that all Or part of the debt is not past-due or not legally enforceable along with the notification required by paragraph (a) Of this Section. Failure to Submit the notification and evidence within 60 dayS will result in an automatic referral Of the debt to the IRS without further action by EPA. (c) Review of the evidence. EPA will Consider all available evidence related to the debt. Within 30 days, if feasible, EPA will notify the debtor whether EPA has Sustained, annended, Or CanCelled its determination that the debt is past-due and legally enforceable.

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This part prescribes regulations for the Military Personnel and Civilian Employees’ Claims Act of 1964 (the Act), 31 U.S.C. 3721. The Act, allows the Administrator of the U.S. Environmental Protection Agency (EPA) to Settle and pay claims of EPA employ– ees for damage to or loss of their perSonal property which was incident to Service. A claim under the Act is allowed Only where the claim is Substantiated and the Administrator determines that possession of the property was reasonable Or proper under the CirCumstances existing at the time and place Of the loss and no part of the loss was Caused by any negligent Or wrongful act. Or Omission of the employee Or his/her agent.

§ 14.2 Definitions.

AS used in this part:

(a) EPA Claims Officer is the Agency Official delegated the responsibility by the Administrator to carry out the provisions Of the Act.

(b) Claim means a demand for payment by an employee or his/her representative for the value Or the repair COSt. Of an item Of perSonal property damaged, lost or destroyed as an incident to government Service.

(c) Employee means a person appointed to a position with EPA.

(d) Settle means the act. Of Considering, ascertaining, adjusting, determining or otherwise resolving a claim.

(e) Accrual date means the date of the incident Causing the loss or damage or the date on which the loss or damage Should have been discovered by the employee through the exercise of reasonable Care.

(f) Depreciation is the reduction in Valiae of an item caused by the elapse of time between the date of acquisition and the date of loss or damage.

§ 14.3 Incident to service.

In order for a claim to be allowed under this part, the EPA Claims Officer must determine that the item of perSonal property, at the time of damage Or loss, was used by the employee as an incident to government Service. An item is incident to service when posses— Sion of the item by the employee had Substantial relationship to the employ– ee’s performance of duty. Whether an item is incident to Service is determined by the facts of each Claim. The employee has the burden of showing that the item was incident to his/her governmental service.

§ 14.4 Reasonable and proper.

EPA does not insure its employees from every loss or damage to personal property they may Sustain. In Order for a claim to be allowed, the item must not Only have been incident to Service, it must also have been reasonable and proper for the employee to possess the item at the time and place of its loss or damage. Generally, the possession of an item is reasonable and proper when the item is of a type and quantity which EPA reasonably expected its employees to possess at the time and place of the loss or damage. ConSequently, items which are exceptionally expensive, excessive quantities of Otherwise allowable items, personal items which are used in place of items usually provided to employees by EPA or items which are primarily of aesthetic value are not Considered reasonable Or proper items and are unallowable.

§ 14.5 Who may file a claim.

A claim may be filed by an employee or by his/her authorized agent or legal representative. If a Claim is Otherwise allowable under this part, a Claim Can be filed by a Surviving Spouse, Child, parent, brother or Sister of a deceased employee.

§ 14.6 Time limits for filing a claim.

A claim under this part is Considered by the EPA Claims Officer only if it is in writing and received within two years after the claim accrues. The EPA Claims Officer may consider a claim not filed within this period when the claim accrued during a period of armed Conflict and the requirement.S of 31 U.S.C. 3721(g) are met.

§ 14.7 Where to file a claim.

An employee Or his/her representative may file a Claim with his/her Administrative Office or the Safety Office for the facility. The employee should Complete and Submit to the Administrative Office or the Safety Office a completed EPA Form 3370–1, “Employee Claim for LOSS Of Or Damage to Personal Property.” That Office then forwards the form and any Other relevant information to the EPA Claims Officer, Office of General Counsel (LE– 132G), 401 M Street SW., Washington, DC 20460.

§ 14.8 Investigation of claims.

The EPA Claims Officer investigates claims filed under this part. The EPA Claims Officer may request additional documentation from an employee (e.g., repair estimates and receiptS), interview witnesses, and conduct any further investigation he believes is warranted by the facts of the claim.

§ 14.9 Approval and payment of claims.

(a) EPA’s approval and payment of a Claim is limited by the Act, to $25,000. The EPA Claims Officer considers, adjustS, determines, Compromises and Settles all claims filed under this part. The decision of the EPA Claims Officer is final unless reconsideration under $14.10 is granted. (b) The EPA Claims Officer will approve and pay Claims filed for a deCeased employee by persons Specified in $14.5 in the following order: (1) The Spouse's Claim. (2) A Child’s Claim. (3) A parent’s Claim. (4) A brother’s or sister’s claim.

§ 14.10 Procedures for reconsideration.

The EPA Claims Officer, at his disCretion, may reconsider a decision when the employee establishes that an error was made in the Computation of the award or that evidence or material facts were unavailable to the employee

at the time of the filing of the claim and the failure to provide the information was not the result of the employee's lack of care. An employee seeking reconsideration of a decision must file, Within 30 days of the date of the deciSiOn, a Written request with the EPA Claims Officer for reconsideration. The request for reconsideration must specify, where applicable, the error, the evidence or material facts not previously considered by the EPA Claims Officer and the reason why the employee believes that the evidence or facts previously were not available.

§ 14.11 Principal types of allowable claims.

(a) General. A claim under this part is allowed for tangible personal property of a type and quantity that was reasonable and proper for the employee to possess under the Circumstances at the time Of the loss Or damage. In evaluating whether a claim is allowable, the EPA Claims Officer may consider such factors as: The employee’s use of the item; whether EPA generally is aware that Such items are used by its employees; or whether the loss was caused by a failure of EPA to provide adequate protection against the loss. (b) Eacamples of claims which are allowable. Claims which are ordinarily allowed include loss or damage which ocCurred: (1) In a place Officially designated for Storage of property Such as a warehouse, office, garage, or other storage place; (2) In a marine, rail, aircraft, or Other Common disaster or natural disaster Such as a fire, flood, or hurricane; (3) When the personal property was Subjected to an extraordinary risk in the employee's performance of duty, Such as in Connection with an emergency Situation, a Civil disturbance, Common Or natural disaster, or during efforts to save government property or human life; (4) When the property was used for the benefit of the government at the Specific direction of a Supervisor; (5) When the property was money or other valuables deposited with an authorized government agent for Safekeeping; and

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