Title 26 — Internal Revenue Code
Chapter 65 — Abatements, Credits, and Refunds
§ 6402. Authority to make credits or refunds
Statutory text
General rule
In the case of any overpayment, the Secretary, within the applicable period of limitations, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of an internal revenue tax on the part of the person who made the overpayment and shall, subject to subsections (c), (d), (e), and (f), refund any balance to such person.
Credits against estimated tax
The Secretary is authorized to prescribe regulations providing for the crediting against the estimated income tax for any taxable year of the amount determined by the taxpayer or the Secretary to be an overpayment of the income tax for a preceding taxable year.
Offset of past-due support against overpayments
The amount of any overpayment to be refunded to the person making the overpayment shall be reduced by the amount of any past-due support (as defined in section 464(c) of the Social Security Act) owed by that person of which the Secretary has been notified by a State in accordance with section 464 of such Act. The Secretary shall remit the amount by which the overpayment is so reduced to the State collecting such support and notify the person making the overpayment that so much of the overpayment as was necessary to satisfy his obligation for past-due support has been paid to the State. The Secretary shall apply a reduction under this subsection first to an amount certified by the State as past due support under section 464 of the Social Security Act before any other reductions allowed by law. This subsection shall be applied to an overpayment prior to its being credited to a person’s future liability for an internal revenue tax. For purposes of this subsection, any reference to a State shall include a reference to any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act.
Collection of debts owed to Federal agencies
In general
Upon receiving notice from any Federal agency that a named person owes a past-due legally enforceable debt (other than past-due support subject to the provisions of subsection (c)) to such agency, the Secretary shall—
reduce the amount of any overpayment payable to such person by the amount of such debt;
pay the amount by which such overpayment is reduced under subparagraph (A) to such agency; and
notify the person making such overpayment that such overpayment has been reduced by an amount necessary to satisfy such debt.
Priorities for offset
Any overpayment by a person shall be reduced pursuant to this subsection after such overpayment is reduced pursuant to subsection (c) with respect to past-due support collected pursuant to an assignment under section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(3)) and before such overpayment is reduced pursuant to subsections (e) and (f) and before such overpayment is credited to the future liability for tax of such person pursuant to subsection (b). If the Secretary receives notice from a Federal agency or agencies of more than one debt subject to paragraph (1) that is owed by a person to such agency or agencies, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.
Treatment of OASDI overpayments
Requirements
Paragraph (1) shall apply with respect to an OASDI overpayment only if the requirements of paragraphs (1) and (2) of section 3720A(f) of title 31, United States Code, are met with respect to such overpayment.
Notice; protection of other persons filing joint return
Notice
In the case of a debt consisting of an OASDI overpayment, if the Secretary determines upon receipt of the notice referred to in paragraph (1) that the refund from which the reduction described in paragraph (1)(A) would be made is based upon a joint return, the Secretary shall—
notify each taxpayer filing such joint return that the reduction is being made from a refund based upon such return, and
include in such notification a description of the procedures to be followed, in the case of a joint return, to protect the share of the refund which may be payable to another person.
Adjustments based on protections given to other taxpayers on joint return
If the other person filing a joint return with the person owing the OASDI overpayment takes appropriate action to secure his or her proper share of the refund subject to reduction under this subsection, the Secretary shall pay such share to such other person. The Secretary shall deduct the amount of such payment from amounts which are derived from subsequent reductions in refunds under this subsection and are payable to a trust fund referred to in subparagraph (C).
Deposit of amount of reduction into appropriate trust fund
In lieu of payment, pursuant to paragraph (1)(B), of the amount of any reduction under this subsection to the Commissioner of Social Security, the Secretary shall deposit such amount in the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, whichever is certified to the Secretary as appropriate by the Commissioner of Social Security.
OASDI overpayment
For purposes of this paragraph, the term “OASDI overpayment” means any overpayment of benefits made to an individual under title II of the Social Security Act.
Collection of past-due, legally enforceable State income tax obligations
In general
Upon receiving notice from any State that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary—
reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation;
pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and
notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past-due, legally enforceable State income tax obligation.
If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return.
Offset permitted only against residents of State seeking offset
Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.
Priorities for offset
Any overpayment by a person shall be reduced pursuant to this subsection—
after such overpayment is reduced pursuant to—
subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment;
subsection (c) with respect to past-due support; and
subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and
before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b).
If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) or subsection (f) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.
Notice; consideration of evidence
No State may take action under this subsection until such State—
notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section;
gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable;
considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and
satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation.
Past-due, legally enforceable State income tax obligation
For purposes of this subsection, the term “past-due, legally enforceable State income tax obligation” means a debt—
which resulted from—
a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or
a determination after an administrative hearing which has determined an amount of State income tax to be due; and
which is no longer subject to judicial review; or
which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years.
For purposes of this paragraph, the term “State income tax” includes any local income tax administered by the chief tax administration agency of the State.
Regulations
The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure.
Erroneous payment to State
Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).
Collection of unemployment compensation debts
In general
Upon receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary—
reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt;
pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and
notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt.
If an offset is made pursuant to a joint return, the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset.
Priorities for offset
Any overpayment by a person shall be reduced pursuant to this subsection—
after such overpayment is reduced pursuant to—
subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment;
subsection (c) with respect to past-due support; and
subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and
before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b).
If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.
Notice; consideration of evidence
No State may take action under this subsection until such State—
notifies the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section;
provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or is not a covered unemployment compensation debt;
considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and is a covered unemployment compensation debt; and
satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt.
Covered unemployment compensation debt
For purposes of this subsection, the term “covered unemployment compensation debt” means—
a past-due debt for erroneous payment of unemployment compensation due to fraud or the person’s failure to report earnings which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected;
contributions due to the unemployment fund of a State for which the State has determined the person to be liable and which remain uncollected; and
any penalties and interest assessed on such debt.
Regulations
In general
The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied.
Fee payable to Secretary
The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure.
Submission of notices through Secretary of Labor
The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection.
Erroneous payment to State
Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).
Review of reductions
No court of the United States shall have jurisdiction to hear any action, whether legal or equitable, brought to restrain or review a reduction authorized by subsection (c), (d), (e), or (f). No such reduction shall be subject to review by the Secretary in an administrative proceeding. No action brought against the United States to recover the amount of any such reduction shall be considered to be a suit for refund of tax. This subsection does not preclude any legal, equitable, or administrative action against the Federal agency or State to which the amount of such reduction was paid or any such action against the Commissioner of Social Security which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act.
Federal agency
For purposes of this section, the term “Federal agency” means a department, agency, or instrumentality of the United States, and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).
Treatment of payments to States
The Secretary may provide that, for purposes of determining interest, the payment of any amount withheld under subsection (c), (e), or (f) to a State shall be treated as a payment to the person or persons making the overpayment.
Cross reference
For procedures relating to agency notification of the Secretary, see section 3721 of title 31, United States Code.
Refunds to certain fiduciaries of insolvent members of affiliated groups
Notwithstanding any other provision of law, in the case of an insolvent corporation which is a member of an affiliated group of corporations filing a consolidated return for any taxable year and which is subject to a statutory or court-appointed fiduciary, the Secretary may by regulation provide that any refund for such taxable year may be paid on behalf of such insolvent corporation to such fiduciary to the extent that the Secretary determines that the refund is attributable to losses or credits of such insolvent corporation.
Explanation of reason for refund disallowance
In the case of a disallowance of a claim for refund, the Secretary shall provide the taxpayer with an explanation for such disallowance.
Earliest date for certain refunds
No credit or refund of an overpayment for a taxable year shall be made to a taxpayer before the 15th day of the second month following the close of such taxable year if a credit is allowed to such taxpayer under section 24 (by reason of subsection (d) thereof) or 32 for such taxable year.
Misdirected direct deposit refund
Not later than the date which is 6 months after the date of the enactment of the Taxpayer First Act, the Secretary shall prescribe regulations to establish procedures to allow for—
taxpayers to report instances in which a refund made by the Secretary by electronic funds transfer was not transferred to the account of the taxpayer;
coordination with financial institutions for the purpose of—
identifying the accounts to which transfers described in paragraph (1) were made; and
recovery of the amounts so transferred; and
the refund to be delivered to the correct account of the taxpayer.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Aug. 6, 1954, ch. 736, 68A Stat. 791 · 68A Stat. 791
Enacted · 26 U.S.C. § 6402
Aug. 6, 1954, ch. 736, 68A Stat. 791
Source evidence
Code source credit
Aug. 6, 1954, ch. 736, 68A Stat. 791Pub. L. 94–455 title XIX § 1906(b)(13) · 90 Stat. 1520
Struck · 26 U.S.C. § 6402
Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing
Source evidence
Code amendment note
Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.Enacted provision · exact public law section
(13) Amendment conforming to repeal of section 7641.— The table of subchapters for chapter 78 is amended by striking Ante, p. 1832. 26 USC 1 el seq. out the item relating to subchapter C. (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”. (B) The following provisions are each amended by striking 26 USC 4293, 4483, 5551, 7801, 7802, 9006, 9007. 26 USC 3121, 3303, 3304, 3305, 3306, 9005, 9007, 9010, 9012. 26 USC 31. 26 USC 3304. out “Secretary” each place it appears and inserting in lieu thereof “Secretary of the Treasury”: sections 4293, 4483 (b), 5551, 7801(b). 7802(a), 9006(a), 9006(b), and 9007(d). (C) The following provisions are each amended by striking out “to the Secretary” each place it appears and inserting in lieu thereof “to the Secretary of the Treasury”: sections 3121 (b)(12)(B). 3303(b), 3304(a)(3). 3304(c), 3305(j), 3306(c)(12)(B), 9005(a), 9007(b), 9010(b), and 9012(e)(3). (D) Section 31(b)(1) is amended by striking out “(or his delegate)”. (E) The last sentence of section 3304(c) is amended by striking out “the Secretary shall” and inserting in lieu thereof “the Secretary of Labor shall”. (F) Section 3310(d)(2) is amended by striking out “the 26 USC 3310. Secretary’s action” each place it appears and inserting in lieu thereof “the Secretary of Labor’s action”. (G) Section 3221(a) and 3221(c) are each amended by 26 USC 3221. striking out “of the Treasury” each place it appears. (H) Section 3310(e) is amended by striking out “of 26 USC 3310. the Secretary” and inserting in lieu thereof “of the Secretary of Labor”. (I) Section 4412(c) is amended by striking out “he or his 26 USC 4412. delegate” and inserting in lieu thereof “the Secretary”. (J) Section 5845(f) is amended by striking out “of the 26 USC 5845. Treasury or his delegate”. (K) Section 6402(b) is amended by striking out “(or his 26 USC 6402. delegate)”. (L) Section 7458 is amended by striking out “nor his 26 USC 7458. delegate”. (M) Section 7514 is amended by striking out “functions of 26 USC 7514. the Secretary” and inserting in lieu thereof “functions of the Secretary of the Treasury”.Pub. L. 97–35 § 2331(c)(1) · 95 Stat. 357
Inserted · 26 U.S.C. § 6402(a)
Pub. L. 97–35, § 2331(c)(1), inserted reference to subsec. (c) of this section
Source evidence
Code amendment note
Subsec. (a). Pub. L. 97–35, § 2331(c)(1), inserted reference to subsec. (c) of this section.Enacted provision · exact public law section
(1) by striking out in subsection (a) thereof “shall refund” and inserting in lieu thereof “shall, subject to subsection (c), refund”; andPub. L. 97–35 § 2331(c)(2) · 95 Stat. 357
Added · 26 U.S.C. § 6402(c)
Pub. L. 97–35, § 2331(c)(2), added subsec. (c)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 97–35, § 2331(c)(2), added subsec. (c).Enacted provision · exact public law section
(2) by adding at the end thereof the following new subsection: “(c) Offset of Past-Due Support Against Overpayments.— The amount of any overpayment to be refunded to the person making the overpayment shall be reduced by the amount of any past-due support (as defined in section 464(c) of the Social Security Act) owed by that person of which the Secretary has been notified by a State in accordance with section 464 of the Social Security Act. The Secretary shall remit the amount by which the overpayment is so reduced to the State to which such support has been assigned and notify the person making the overpayment that so much of the overpayment as was necessary to satisfy his obligation for past-due support has been paid to the State. This subsection shall be applied to an overpayment prior to its being credited to a person’s future liability for an internal revenue tax.”.Spending Reduction Act of 1984
Pub. L. 98–369 § 2653(b)(2) · 98 Stat. 494
Substituted · 26 U.S.C. § 6402(a)
Pub. L. 98–369, § 2653(b)(2), substituted “subsections (c) and (d)” for “subsection (c)”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 98–369, § 2653(b)(2), substituted “subsections (c) and (d)” for “subsection (c)”.Enacted provision · exact public law section
(2) Subsection (a) of section 6402 of such Code is amended by 26 USC 6402. striking out “subsection (c)” and inserting in lieu thereof “subsections (c) and (d)”.Spending Reduction Act of 1984
Pub. L. 98–369 § 2653(b)(1) · 98 Stat. 494
Added · 26 U.S.C. § 6402(d)(f)
Pub. L. 98–369, § 2653(b)(1), added subsecs. (d) to (f)
Source evidence
Code amendment note
Subsecs. (d) to (f). Pub. L. 98–369, § 2653(b)(1), added subsecs. (d) to (f).Enacted provision · exact public law section
(1) Section 6402 of the Internal Revenue Code of 1954 (relating to authority to make credits or refunds) is amended by adding at the end thereof the following new subsections: “(d) Collection of Debts Owed to Federal Agencies.— “(1) In general.— Upon receiving notice from any Federal agency that a named person owes a past-due legally enforceable debt (other than any OASDI overpayment and past-due support subject to the provisions of subsection (c)) to such agency, the Secretary shall— “(A) reduce the amount of any overpayment payable to such person by the amount of such debt; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such agency; and “(C) notify the person making such overpayment that such overpayment has been reduced by an amount necessary to satisfy such debt. “(2) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection after such overpayment is reduced pursuant to subsection (c) with respect to pastdue support collected pursuant to an assignment under section 42 USC 602. 402(a)(26) of the Social Security Act and before such overpayment is credited to the future liability for tax of such person pursuant to subsection (b). If the Secretary receives notice from a Federal agency or agencies of more than one debt subject to paragraph (1) that is owed by a person to such agency or agencies, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(3) Definitions.— For purposes of this subsection the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act. 42 USC 401. “(e) Review of Reductions.— No court of the United States shall have jurisdiction to hear any action, whether legal or equitable, brought to restrain or review a reduction authorized by subsection (c) or (d). No such reduction shall be subject to review by the Secretary in an administrative proceeding. No action brought against the United States to recover the amount of any such reduction shall be considered to be a suit for refund of tax. This subsection does not preclude any legal, equitable, or administrative action against the Federal agency to which the amount of such reduction was paid. “(f) Federal Agency.— For purposes of this section, the term ‘Federal agency’ means a department, agency, or instrumentality of the United States (other than an agency subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code). “(g) Cross Reference.— For procedures relating to agency notification of the Secretary, see section 3721 of title 31, United States Code.”.Spending Reduction Act of 1984
Pub. L. 98–369 § 2653(b)(1) · 98 Stat. 494
Added · 26 U.S.C. § 6402(g)
Pub. L. 98–369, § 2653(b)(1), added subsec. (g)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 98–369, § 2653(b)(1), added subsec. (g).Enacted provision · exact public law section
(1) Section 6402 of the Internal Revenue Code of 1954 (relating to authority to make credits or refunds) is amended by adding at the end thereof the following new subsections: “(d) Collection of Debts Owed to Federal Agencies.— “(1) In general.— Upon receiving notice from any Federal agency that a named person owes a past-due legally enforceable debt (other than any OASDI overpayment and past-due support subject to the provisions of subsection (c)) to such agency, the Secretary shall— “(A) reduce the amount of any overpayment payable to such person by the amount of such debt; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such agency; and “(C) notify the person making such overpayment that such overpayment has been reduced by an amount necessary to satisfy such debt. “(2) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection after such overpayment is reduced pursuant to subsection (c) with respect to pastdue support collected pursuant to an assignment under section 42 USC 602. 402(a)(26) of the Social Security Act and before such overpayment is credited to the future liability for tax of such person pursuant to subsection (b). If the Secretary receives notice from a Federal agency or agencies of more than one debt subject to paragraph (1) that is owed by a person to such agency or agencies, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(3) Definitions.— For purposes of this subsection the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act. 42 USC 401. “(e) Review of Reductions.— No court of the United States shall have jurisdiction to hear any action, whether legal or equitable, brought to restrain or review a reduction authorized by subsection (c) or (d). No such reduction shall be subject to review by the Secretary in an administrative proceeding. No action brought against the United States to recover the amount of any such reduction shall be considered to be a suit for refund of tax. This subsection does not preclude any legal, equitable, or administrative action against the Federal agency to which the amount of such reduction was paid. “(f) Federal Agency.— For purposes of this section, the term ‘Federal agency’ means a department, agency, or instrumentality of the United States (other than an agency subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code). “(g) Cross Reference.— For procedures relating to agency notification of the Secretary, see section 3721 of title 31, United States Code.”.Child Support Enforcement Amendments of 1984
Pub. L. 98–378 § 21(e)(1) · 98 Stat. 1305
Substituted · 26 U.S.C. § 6402(c)
Pub. L. 98–378, § 21(e)(1), substituted “collecting such support” for “to which such support has been assigned”
Inserted · 26 U.S.C. § 6402(c)
Pub. L. 98–378, § 21(e)(1), inserted provision that a reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made
Source evidence
Code amendment note
Subsec. (c). Pub. L. 98–378, § 21(e)(1), substituted “collecting such support” for “to which such support has been assigned” and inserted provision that a reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.Enacted provision · exact public law section
(1) Section 6402(c) of the Internal Revenue Code of 1954 is amended— (A) by striking out “to which such support has been assigned” and inserting in lieu thereof “collecting such support”; and (B) by inserting before the last sentence thereof the following: “A reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support 42 USC 602. Ante, p. 1318. after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.”.Child Support Enforcement Amendments of 1984
Pub. L. 98–378 § 21(e)(2) · 98 Stat. 1305
Redesignated · 26 U.S.C. § 6402(g)
Pub. L. 98–378, § 21(e)(2), added subsec. (g). Former subsec. (g) redesignated (h)
Source evidence
Code amendment note
Subsec. (g). Pub. L. 98–378, § 21(e)(2), added subsec. (g). Former subsec. (g) redesignated (h).Enacted provision · exact public law section
(2) Section 6402 of such Code (as amended by section 2653 of the Ante, p. 1154. Deficit Reduction Act of 1984) is further amended by redesignating subsection (g) as subsection (h), and by inserting after subsection (f) the following new subsection: “(g) Treatment of Payments to States.— The Secretary may provide that, for purposes of determining interest, the payment of any amount withheld under subsection (c) to a State shall be treated as a payment to the person or persons making the overpayment.”.Child Support Enforcement Amendments of 1984
Pub. L. 98–378 § 21(e)(2) · 98 Stat. 1305
Redesignated · 26 U.S.C. § 6402(h)
Pub. L. 98–378, § 21(e)(2), redesignated former subsec. (g) as (h)
Source evidence
Code amendment note
Subsec. (h). Pub. L. 98–378, § 21(e)(2), redesignated former subsec. (g) as (h).Enacted provision · exact public law section
(2) Section 6402 of such Code (as amended by section 2653 of the Ante, p. 1154. Deficit Reduction Act of 1984) is further amended by redesignating subsection (g) as subsection (h), and by inserting after subsection (f) the following new subsection: “(g) Treatment of Payments to States.— The Secretary may provide that, for purposes of determining interest, the payment of any amount withheld under subsection (c) to a State shall be treated as a payment to the person or persons making the overpayment.”.Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 title VI § 6276 · 102 Stat. 3342
Added · 26 U.S.C. § 6402(i)
Pub. L. 100–647 added subsec. (i)
Source evidence
Code amendment note
Subsec. (i). Pub. L. 100–647 added subsec. (i).Enacted provision · exact public law section
SEC. 6276. AUTHORITY TO PAY REFUNDS TO CERTAIN FIDUCIARIES OF INSOLVENT MEMBERS OF AFFILIATED GROUPS. Section 6402 of the 1986 Code (relating to authority to make credits or refunds) is amended by adding at the end thereof the following new subsection: “(i) Refunds to Certain Fiduciaries of Insolvent Members of Affiliated Groups.— Notwithstanding any other provision of law, in the case of an insolvent corporation which is a member of an affiliated group of corporations filing a consolidated return for any taxable year and which is subject to a statutory or court-appointed fiduciary, the Secretary may by regulation provide that any refund for such taxable year may be paid on behalf of such insolvent corporation to such fiduciary to the extent that the Secretary determines that the refund is attributable to losses or credits of such insolvent corporation.”Omnibus Budget Reconciliation Act of 1990
Pub. L. 101–508 § 5129(c)(1)(A) · 104 Stat. 1388
Struck · 26 U.S.C. § 6402(d)(1)
Pub. L. 101–508, § 5129(c)(1)(A), struck out “any OASDI overpayment and” after “(other than”
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 101–508, § 5129(c)(1)(A), struck out “any OASDI overpayment and” after “(other than”.Enacted provision · exact public law section
(A) in paragraph (1), by striking “any OASDI overpayment and”; andOmnibus Budget Reconciliation Act of 1990
Pub. L. 101–508 § 5129(c)(1)(B) · 104 Stat. 1388
Added · 26 U.S.C. § 6402(d)(3)
Pub. L. 101–508, § 5129(c)(1)(B), added par. (3)
Struck · 26 U.S.C. § 6402(d)(3)
Pub. L. 101–508, § 5129(c)(1)(B), struck out former par. (3) which read as follows: “For purposes of this subsection the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act.”
Source evidence
Code amendment note
Subsec. (d)(3). Pub. L. 101–508, § 5129(c)(1)(B), added par. (3) and struck out former par. (3) which read as follows: “For purposes of this subsection the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act.”Enacted provision · exact public law section
(B) by striking paragraph (3) and inserting the following new paragraph: “(3) Treatment of oasdi overpayments.— “(A) Requirements.— Paragraph (1) shall apply with respect to an OASDI overpayment only if the requirements of paragraphs (1) and (2) of section 3720A(f) of title 31, United States Code, are met with respect to such overpayment. “(B) Notice; protection of other persons filing joint return.— “(i) Notice.— In the case of a debt consisting of an OASDI overpayment, if the Secretary determines upon receipt of the notice referred to in paragraph (1) that the refund from which the reduction described in paragraph (1)(A) would be made is based upon a joint return, the Secretary shall— “(I) notify each taxpayer filing such joint return that the reduction is being made from a refund based upon such return, and “(II) include in such notification a description of the procedures to be followed, in the case of a joint return, to protect the share of the refund which may be payable to another person. “(ii) Adjustments based on protections given to other taxpayers on joint return.— If the other person filing a joint return with the person owing the OASDI overpayment takes appropriate action to secure his or her proper share of the refund subject to reduction under this subsection, the Secretary shall pay such share to such other person. The Secretary shall deduct the amount of such payment from amounts which are derived from subsequent reductions in refunds under this subsection and are payable to a trust fund referred to in subparagraph (C). “(C) Deposit of amount of reduction into appropriate trust fund.— In lieu of payment, pursuant to paragraph (1)(B), of the amount of any reduction under this subsection to the Secretary of Health and Human Services, the Secretary shall deposit such amount in the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, whichever is certified to the Secretary as appropriate by the Secretary of Health and Human Services. “(D) OASDI overpayment.— For purposes of this paragraph, the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act.”.Omnibus Budget Reconciliation Act of 1990
Pub. L. 101–508 § 5129(c)(2) · 104 Stat. 1388
Inserted · 26 U.S.C. § 6402(e)
Pub. L. 101–508, § 5129(c)(2), inserted before period at end “or any such action against the Secretary of Health and Human Services which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 101–508, § 5129(c)(2), inserted before period at end “or any such action against the Secretary of Health and Human Services which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act”.Enacted provision · exact public law section
(2) Preservation of remedies.— Subsection (e) of section 6402 of such Code (relating to review of reductions) is amended in the last sentence by inserting before the period the following: “or any such action against the Secretary of Health and Human Services which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act”,Pub. L. 103–296 title I § 108(h)(7) · 108 Stat. 1464
Substituted · 26 U.S.C. § 6402(d)(3)(C); 26 U.S.C. § 6402(d)(3)(e)
Pub. L. 103–296 substituted “Commissioner of Social Security” for “Secretary of Health and Human Services” wherever appearing
Source evidence
Code amendment note
Subsecs. (d)(3)(C), (e). Pub. L. 103–296 substituted “Commissioner of Social Security” for “Secretary of Health and Human Services” wherever appearing.Enacted provision · exact public law section
SEC. 108. ADDITIONAL CONFORMING AMENDMENTS. (a) Amendments to Title VII.— (1) Title VII of the Social Security Act (42 U.S.C. 901 et seq.) is amended by adding at the end the following new section:Debt Collection Improvement Act of 1996
Pub. L. 104–134 title III § 31001(u)(2) · 110 Stat. 1321
Amended · 26 U.S.C. § 6402(f)
Pub. L. 104–134 amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “For purposes of this section, the term ‘Federal agency’ means a department, agency, or instrumentality of the United States (other than an agency subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 104–134 amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “For purposes of this section, the term ‘Federal agency’ means a department, agency, or instrumentality of the United States (other than an agency subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).”Enacted provision · exact public law section
SEC. 31001. DEBT COLLECTION IMPROVEMENT ACT OF 1996. (a) (1) This section may be cited as the “Debt Collection Improvement Act of 1996” (2) (A) In General.— The provisions of this section and the amendments made by this section shall take effect on the date of the enactment of this Act. (B) Offsets From Social Security Payments, Etc.— Subparagraph (A) of section 3716(c)(3) of title 31, United States Code (as added by subsection (d)(2) of this section), shall apply only to payments made after the date which is 4 months after the date of the enactment of this Act. (b) The purposes of this section are the following: 31 USC 3701 note. (1) To maximize collections of delinquent debts owed to the Government by ensuring quick action to enforce recovery of debts and the use of all appropriate collection tools. (2) To minimize the costs of debt collection by consolidating related functions and activities and utilizing interagency teams. (3) To reduce losses arising from debt management activities by requiring proper screening of potential borrowers, aggressive monitoring of all accounts, and sharing of information within and among Federal agencies. (4) To ensure that the public is fully informed of the Federal Government’s debt collection policies and that debtors are cog-nizant of their financial obligations to repay amounts owed to the Federal Government. (5) To ensure that debtors have all appropriate due process rights, including the ability to verify, challenge, and compromise claims, and access to administrative appeals procedures which are both reasonable and protect the interests of the United States. (6) To encourage agencies, when appropriate, to sell delinquent debt, particularly debts with underlying collateral. (7) To rely on the experience and expertise of private sector professionals to provide debt collection services to Federal agencies. (c) Chapter 37 of title 31, United States Code, is amended— (1) in each of sections 3711, 3716, 3717, and 3718, by striking “the head of an executive or legislative agency” each place it appears and inserting “the head of an executive, judicial, or legislative agency”; and (2) by amending section 3701(a)(4) to read as follows: “(4) ‘executive, judicial, or legislative agency’ means a department, agency, court, court administrative office, or instrumentality in the executive, judicial, or legislative branch of Government, including government corporations.”. (d) (1) Persons Subject to Administrative Offset.— Section 3701(c) of title 31, United States Code, is amended to read as follows: “(c) In sections 3716 and 3717 of this title, the term ‘person’ does not include an agency of the United States Government.”. (2) Requirements and Procedures.— Section 3716 of title 31, United States Code, is amended— (A) by amending subsection (b) to read as follows: “(b) Before collecting a claim by administrative offset, the head of an executive, judicial, or legislative agency must either— “(1) adopt, without change, regulations on collecting by administrative offset promulgated by the Department of Justice, the General Accounting Office, or the Department of the Treasury; or “(2) prescribe regulations on collecting by administrative offset consistent with the regulations referred to in paragraph (1)”; (B) by amending subsection (c)(2) to read as follows: “(2) when a statute explicitly prohibits using administrative offset or setoff to collect the claim or type of claim involved.”; (C) by redesignating subsection (c) as subsection (e); and (D) by inserting after subsection (b) the following new subsections: “(c) (1) (A) Except as otherwise provided in this subsection, a disbursing official of the Department of the Treasury, the Department of Defense, the United States Postal Service, or any other government corporation, or any disbursing official of the United States designated by the Secretary of the Treasury, shall offset at least annually the amount of a payment which a payment certifying agency has certified to the disbursing official for disbursement, by an amount equal to the amount of a claim which a creditor agency has certified to the Secretary of the Treasury pursuant to this subsection. “(B) An agency that designates disbursing officials pursuant to section 3321(c) of this title is not required to certify claims arising out of its operations to the Secretary of the Treasury before such agency’s disbursing officials offset such claims. “(C) Payments certified by the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 shall not be subject to administrative offset under this subsection. “(2) Neither the disbursing official nor the payment certifying agency shall be liable— “(A) for the amount of the administrative offset on the basis that the underlying obligation, represented by the payment before the administrative offset was taken, was not satisfied; or “(B) for failure to provide timely notice under paragraph (8). “(3) (A) (i) Notwithstanding any other provision of law (including sections 207 and 1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 1383(d)(1)), section 413(b) of Public Law 91–173 (30 U.S.C. 923(b)), and section 14 of the Act of August 29, 1935 (45 U.S.C. 231m)), except as provided in clause (ii), all payments due to an individual under— “(I) the Social Security Act, “(II) part B of the Black Lung Benefits Act, or “(III) any law administered by the Railroad Retirement Board (other than payments that such Board determines to be tier 2 benefits), shall be subject to offset under this section. “(ii) An amount of $9,000 which a debtor may receive under Federal benefit programs cited under clause (i) within a 12-month period shall be exempt from offset under this subsection. In applying the $9,000 exemption, the disbursing official shall— “(I) reduce the $9,000 exemption amount for the 12-month period by the amount of all Federal benefit payments made during such 12-month period which are not subject to offset under this subsection; and “(II) apply a prorated amount of the exemption to each periodic benefit payment to be made to the debtor during the applicable 12-month period. For purposes of the preceding sentence, the amount of a periodic benefit payment shall be the amount after any reduction or deduction required under the laws authorizing the program under which such payment is authorized to be made (including any reduction or deduction to recover any overpayment under such program). “(B) The Secretary of the Treasury shall exempt from administrative offset under this subsection payments under means-tested programs when requested by the head of the respective agency. The Secretary may exempt other payments from administrative offset under this subsection upon the written request of the head of a payment certifying agency. A written request for exemption of other payments must provide justification for the exemption under standards prescribed by the Secretary. Such standards shall give due consideration to whether administrative offset would tend to interfere substantially with or defeat the purposes of the payment certifying agency’s program. The Secretary shall report to the Congress Reports. annually on exemptions granted under this section. “(C) The provisions of sections 205(b)(1) and 1631(c)(1) of the Social Security Act shall not apply to any administrative offset executed pursuant to this section against benefits authorized by either title II or title XVI of the Social Security Act, respectively. “(4) The Secretary of the Treasury may charge a fee sufficient to cover the full cost of implementing this subsection. The fee may be collected either by the retention of a portion of amounts collected pursuant to this subsection, or by billing the agency referring or transferring a claim for those amounts. Fees charged to the agencies shall be based on actual administrative offsets completed. Amounts received by the United States as fees under this subsection shall be deposited into the account of the Department of the Treasury under section 3711(g)(7) of this title, and shall be collected and accounted for in accordance with the provisions of that section. “(5) The Secretary of the Treasury in consultation with the Commissioner of Social Security and the Director of the Office of Management and Budget, may prescribe such rules, regulations, and procedures as the Secretary of the Treasury considers necessary Rules, regulations, and procedures. to carry out this subsection. The Secretary shall consult with the heads of affected agencies in the development of such rules, regulations, and procedures. “(6) Notification. Any Federal agency that is owed by a person a past due, legally enforceable nontax debt that is over 180 days delinquent, including nontax debt administered by a third party acting as an agent for the Federal Government, shall notify the Secretary of the Treasury of all such nontax debts for purposes of administrative offset under this subsection. “(7)Notification. (A) The disbursing official conducting an administrative offset with respect to a payment to a payee shall notify the payee in writing of— “(i) the occurrence of the administrative offset to satisfy a past due legally enforceable debt, including a description of the type and amount of the payment otherwise payable to the payee against which the offset was executed; “(ii) the identity of the creditor agency requesting the offset; and “(iii) a contact point within the creditor agency that will handle concerns regarding the offset. “(B) If the payment to be offset is a periodic benefit payment, the disbursing official shall take reasonable steps, as determined by the Secretary of the Treasury, to provide the notice to the payee not later than the date on which the payee is otherwise scheduled to receive the payment, or as soon as practical thereafter, but no later than the date of the administrative offset. Notwithstanding the preceding sentence, the failure of the debtor to receive such notice shall not impair the legality of such administrative offset. “(8) A levy pursuant to the Internal Revenue Code of 1986 shall take precedence over requests for administrative offset pursuant to other laws. “(d) Nothing in this section is intended to prohibit the use of any other administrative offset authority existing under statute or common law.”. (3) Nontax Debt or Claim Defined.— Section 3701 of title 31, United States Code, is amended in subsection (a) by adding at the end the following new paragraph: “(8) ‘nontax’ means, with respect to any debt or claim, any debt or claim other than a debt or claim under the Internal Revenue Code of 1986.”. (4) Treasury Check Withholding.— Section 3712 of title 31, United States Code, is amended by adding at the end the following new subsection: “(e) Treasury Check Offset.— “(1) In general.— To facilitate collection of amounts owed by presenting banks pursuant to subsection (a) or (b), upon the direction of the Secretary, a Federal reserve bank shall withhold credit from banks presenting Treasury checks for ultimate charge to the account of the United States Treasury. By presenting Treasury checks for payment a presenting bank is deemed to authorize this offset. “(2) Attempt to collect required.— Prior to directing offset under subsection (a)(1), the Secretary shall first attempt to collect amounts owed in the manner provided by sections 3711 and 3716.”. (e) Section 3716 of title 31, United States Code, as amended by subsection (d)(2) of this section, is further amended by adding at the end the following new subsections: “(f) The Secretary may waive the requirements of sections 552a(o) and (p) of title 5 for administrative offset or claims collection upon written certification by the head of a State or an executive, judicial, or legislative agency seeking to collect the claim that the requirements of subsection (a) of this section have been met. “(g) The Data Integrity Board of the Department of the Treasury established under 552a(u) of title 5 shall review and include in reports under paragraph (3)(D) of that section a description of any matching activities conducted under this section. If the Secretary has granted a waiver under subsection (f) of this section, no other Data Integrity Board is required to take any action under section 552a(u) of title 5.”. (f) Section 3716 of title 31, United States Code, as amended by subsections (d) and (e) of this section, is further amended by adding at the end the following new subsection: “(h) (1) The Secretary may, in the discretion of the Secretary, apply subsection (a) with respect to any past-due, legally-enforceable debt owed to a State if— “(A) the appropriate State disbursing official requests that an offset be performed; and “(B) a reciprocal agreement with the State is in effect which contains, at a minimum— “(i) requirements substantially equivalent to subsection (b) of this section; and “(ii) any other requirements which the Secretary considers appropriate to facilitate the offset and prevent duplicative efforts. “(2) This subsection does not apply to— “(A) the collection of a debt or claim on which the administrative costs associated with the collection of the debt or claim exceed the amount of the debt or claim; “(B) any collection of any other type, class, or amount of claim, as the Secretary considers necessary to protect the interest of the United States; or “(C) the disbursement of any class or type of payment exempted by the Secretary of the Treasury at the request of a Federal agency. “(3) In applying this section with respect to any debt owed to a State, subsection (c)(3)(A) shall not apply.”. (g) (1) Title 31.— Title 31, United States Code, is amended— (A) in section 3322(a), by inserting “section 3716 and section 3720A of this title and” after “Except as provided in”; (B) in section 3325(a)(3), by inserting “or pursuant to payment intercepts or offsets pursuant to section 3716 or 3720A of this title,” after “voucher”; and (C) in each of sections 3711(e)(2) and 3717(h) by inserting “, the Secretary of the Treasury,” after “Attorney General”. (2) Internal Revenue Code of 1986.—Subparagraph (A) of section 6103(1)(10) of the Internal Revenue Code of 1986 (26 U.S.C. 6103(1)(10)) is amended by inserting “and to officers and employees of the Department of the Treasury in connection with such reduction” after “6402”. (h) Section 5514 of title 5, United States Code, is amended— (A) in subsection (a)— (i) by adding at the end of paragraph (1) the following: “All Federal agencies to which debts are owed and which have outstanding delinquent debts shall participate in a computer match at least annually of their delinquent debt records with records of Federal employees to identify those employees who are delinquent in repayment of those debts. The preceding sentence shall not apply to any debt under Records. the Internal Revenue Code of 1986. Matched Federal employee records shall include, but shall not be limited to, records of active Civil Service employees government-wide, military active duty personnel, military reservists, United States Postal Service employees, employees of other government corporations, and seasonal and temporary employees. The Secretary of the Treasury shall establish and maintain an interagency consortium to implement centralized salary offset computer matching, and promulgate regulations for this program. Agencies that perform centralized salary offset computer matching services under this subsection are authorized to charge a fee sufficient to cover the full cost for such services.”; (ii) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; (iii) by inserting after paragraph (2) the following new paragraph: “(3) Paragraph (2) shall not apply to routine intraagency adjustments of pay that are attributable to clerical or administrative errors or delays in processing pay documents that have occurred within the four pay periods preceding the adjustment and to any adjustment that amounts to $50 or less, if at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and the amount of the adjustment and a point of contact for contesting such adjustment.”; and (iv) by amending paragraph (5)(B) (as redesignated by clause (ii) of this subparagraph) to read as follows: “(B) ‘agency’ includes executive departments and agencies, the United States Postal Service, the Postal Rate Commission, the United States Senate, the United States House of Representatives, and any court, court administrative office, or instrumentality in the judicial or legislative branches of the Government, and government corporations.”; (B) by adding after subsection (c) the following new subsection: “(d) A levy pursuant to the Internal Revenue Code of 1986 shall take precedence over other deductions under this section.”. (i) (1) In General.— Section 7701 of title 31, United States Code, is amended by adding at the end the following new subsections: “(c) (1) The head of each Federal agency shall require each person doing business with that agency to furnish to that agency such person’s taxpayer identifying number. “(2) For purposes of this subsection, a person shall be considered to be doing business with a Federal agency if the person is— “(A) a lender or servicer in a Federal guaranteed or insured loan program administered by the agency; “(B) an applicant for, or recipient of, a Federal license, permit, right-of-way, grant, or benefit payment administered by the agency or insurance administered by the agency; “(C) a contractor of the agency; “(D) assessed a fine, fee, royalty or penalty by the agency; and “(E) in a relationship with the agency that may give rise to a receivable due to that agency, such as a partner of a borrower in or a guarantor of a Federal direct or insured loan administered by the agency. “(3) Each agency shall disclose to a person required to furnish a taxpayer identifying number under this subsection its intent to use such number for purposes of collecting and reporting on any delinquent amounts arising out of such person’s relationship with the Government. “(4) For purposes of this subsection, a person shall not be treated as doing business with a Federal agency solely by reason of being a debtor under third party claims of the United States. The preceding sentence shall not apply to a debtor owing claims resulting from petroleum pricing violations or owing claims resulting from Federal loan or loan guarantee/insurance programs. “(d) Notwithstanding section 552a(b) of title 5, United States Code, creditor agencies to which a delinquent claim is owed, and their agents, may match their debtor records with Department of Health and Human Services, and Department of Labor records to obtain names (including names of employees), name controls, names of employers, taxpayer identifying numbers, addresses (including addresses of employers), and dates of birth. The preceding sentence shall apply to the disclosure of taxpayer identifying numbers only if such disclosure is not otherwise prohibited by section 6103 of the Internal Revenue Code of 1986. The Department of Health and Human Services, and the Department of Labor shall release that information to creditor agencies and may charge reason-able fees sufficient to pay the costs associated with that release.” (2) Included Federal Loan Program Defined.— Subparagraph (C) of section 6103(l)(3) of the Internal Revenue Code of 1986 (relating to disclosure that applicant for Federal loan has tax delinquent account) is amended to read as follows: “(C) Included Federal Loan Program Defined.— For purposes of this paragraph, the term ‘included Federal loan program’ means any program under which the United States or a Federal agency makes, guarantees, or insures loans.”. (3) Clerical Amendments.— (A) The chapter title to chapter 77 of subtitle VI of title 31, United States Code, is amended to read as follows: “CHAPTER 77— ACCESS TO INFORMATION FOR DEBT COLLECTION”. (B) The table of chapters for subtitle VI of title 31, United States Code, is amended by inserting before the item relating to chapter 91 the following new item: “77. Access to information for debt collection (j) (1) In General.— Title 31, United States Code, is amended by inserting after section 3720A the following new section: “§ 3720B. Barring delinquent Federal debtors from obtaining Federal loans or loan insurance guarantees “(a) Standards. Unless this subsection is waived by the head of a Federal agency, a person may not obtain any Federal financial assistance in the form of a loan (other than a disaster loan) or loan insurance or guarantee administered by the agency if the person has an outstanding debt (other than a debt under the Internal Revenue Code of 1986) with any Federal agency which is in a delinquent status, as determined under standards prescribed by the Secretary of the Treasury. Such a person may obtain additional loans or loan guarantees only after such delinquency is resolved in accordance with those standards. The Secretary of the Treasury may exempt, at the request of an agency, any class of claims. “(b) The head of a Federal agency may delegate the waiver authority under subsection (a) to the Chief Financial Officer of the agency. The waiver authority may be redelegated only to the Deputy Chief Financial Officer of the agency.” (2) Clerical Amendment.— The table of sections for subchapter II of chapter 37 of title 31, United States Code, is amended by inserting after the item relating to section 3720A the following new item: “3720B. Barring delinquent Federal debtors from obtaining Federal loans or loan insurance guarantees.”. (k) Section 3711(f) of title 31, United States Code, is amended— (1) by striking “may” the first place it appears and inserting “shall”; (2) by striking “an individual” each place it appears and inserting “a person”; (3) by striking “the individual” each place it appears and inserting “the person”; and (4) by adding at the end the following new paragraphs: “(4) The head of each executive agency snail require, as a condition for insuring or guaranteeing any loan, financing, or other extension of credit under any law to a person, that the lender provide information relating to the extension of credit to consumer reporting agencies or commercial reporting agencies, as appropriate. “(5) The head of each executive agency may provide to a consumer reporting agency or commercial reporting agency information from a system of records that a person is responsible for a claim which is current, if notice required by section 552a(e)(4) of title 5 indicates that information in the system may be disclosed to a consumer reporting agency or commercial reporting agency, respectively.”. (l) Section 3718 of title 31, United States Code, is amended— (1) in subsection (a), by striking the first sentence and inserting the following: “Under conditions the head of an executive, judicial, or legislative agency considers appropriate, the head of the agency may enter into a contract with a person for collection service to recover indebtedness owed, or to locate or recover assets of, the United States Government. The head of an agency may not enter into a contract under the preceding sentence to locate or recover assets of the United States held by a State government or financial institution unless that agency has established procedures approved by the Secretary of the Treasury to identify and recover such assets.”; and (2) in subsection (d), by inserting “, or to locate or recover assets of,” after “owed”. (m) (1) In General.— Section 3711 of title 31, United States Code, is amended by adding at the end the following new subsections: “(g) (1) If a nontax debt or claim owed to the United States has been delinquent for a period of 180 days— “(A) the head of the executive, judicial, or legislative agency that administers the program that gave rise to the debt or claim shall transfer the debt or claim to the Secretary of the Treasury; and “(B) upon such transfer the Secretary of the Treasury shall take appropriate action to collect or terminate collection actions on the debt or claim. “(2) Paragraph (1) shall not apply— “(A) to any debt or claim that— “(i) is in litigation or foreclosure; “(ii) will be disposed of under an asset sales program within 1 year after becoming eligible for sale, or later than 1 year if consistent with an asset sales program and a schedule established by the agency and approved by the Director of the Office of Management and Budget; “(iii) has been referred to a private collection contractor for collection for a period of time determined by the Secretary of the Treasury; “(iv) has been referred by, or with the consent of, the Secretary of the Treasury to a debt collection center for a period of time determined by the Secretary of the Treasury; or “(v) will be collected under internal offset, if such offset is sufficient to collect the claim within 3 years after the date the debt or claim is first delinquent; and “(B) to any other specific class of debt or claim, as determined by the Secretary of the Treasury at the request of the head of an executive, judicial, or legislative agency or otherwise. “(3) For purposes of this section, the Secretary of the Treasury may designate, and withdraw such designation of debt collection centers operated by other Federal agencies. The Secretary of the Treasury shall designate such centers on the basis of their performance in collecting delinquent claims owed to the Government. “(4) At the discretion of the Secretary of the Treasury, referral of a nontax claim may be made to— “(A) any executive department or agency operating a debt collection center for servicing, collection, compromise, or suspension or termination of collection action; “(B) a private collection contractor operating under a contract for servicing or collection action; or “(C) the Department of Justice for litigation. “(5) Nontax claims referred or transferred under this section shall be serviced, collected, or compromised, or collection action thereon suspended or terminated, in accordance with otherwise applicable statutory requirements and authorities. Executive departments and agencies operating debt collection centers may enter into agreements with the Secretary of the Treasury to carry out the purposes of this subsection. The Secretary of the Treasury shall— “(A) maintain competition in carrying out this subsection; “(B) maximize collections of delinquent debts by placing delinquent debts quickly; “(C) maintain a schedule of private collection contractors and debt collection centers eligible for referral of claims; and “(D) refer delinquent debts to the person most appropriate to collect the type or amount of claim involved. “(6) Any agency operating a debt collection center to which nontax claims are referred or transferred under this subsection may charge a fee sufficient to cover the full cost of implementing this subsection. The agency transferring or referring the nontax claim shall be charged the fee, and the agency charging the fee shall collect such fee by retaining the amount of the fee from amounts collected pursuant to this subsection. Agencies may agree to pay through a different method, or to fund an activity from another account or from revenue received from the procedure described under section 3720C of this title. Amounts charged under this subsection concerning delinquent claims may be considered as costs pursuant to section 3717(e) of this title. “(7) Notwithstanding any other law concerning the depositing and collection of Federal payments, including section 3302(b) of this title, agencies collecting fees may retain the fees from amounts collected. Any fee charged pursuant to this subsection shall be deposited into an account to be determined by the executive department or agency operating the debt collection center charging the fee (in this subsection referred to in this section as the ‘Account’). Amounts deposited in the Account shall be available until expended to cover costs associated with the implementation and operation of Govemmentwide debt collection activities. Costs properly chargeable to the Account include— “(A) the costs of computer hardware and software, word processing and telecommunications equipment, and other equipment, supplies, and furniture; “(B) personnel training and travel costs; “(C) other personnel and administrative costs; “(D) the costs of any contract for identification, billing, or collection services; and “(E) reasonable costs incurred by the Secretary of the Treasury, including services and utilities provided by the Secretary, and administration of the Account. “(8) Not later than January 1 of each year, there shall be deposited into the Treasury as miscellaneous receipts an amount equal to the amount of unobligated balances remaining in the Account at the close of business on September 30 of the preceding year, minus any part of such balance that the executive department or agency operating the debt collection center determines is necessary to cover or defray the costs under this subsection for the fiscal year in which the deposit is made. “(9) Before discharging any delinquent debt owed to any executive, judicial, or legislative agency, the head of such agency shall take all appropriate steps to collect such debt, including (as applicable)— “(A) administrative offset, “(B) tax refund offset, “(C) Federal salary offset, “(D) referral to private collection contractors, “(E) referral to agencies operating a debt collection center, “(F) reporting delinquencies to credit reporting bureaus, “(G) garnishing the wages of delinquent debtors, and “(H) litigation or foreclosure. “(10) To carry out the purposes of this subsection, the Secretary of the Treasury may prescribe such rules, regulations, and procedures as the Secretary considers necessary and transfer such funds from funds appropriated to the Department of the Treasury as may be necessary to meet existing liabilities and obligations incurred prior to the receipt of revenues that result from debt collections. “(h) (1) The head of an executive, judicial, or legislative agency acting under subsection (a)(1), (2), or (3) of this section to collect a claim, compromise a claim, or terminate collection action on a claim may obtain a consumer report (as that term is defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a)) or comparable credit information on any person who is Hable for the claim. “(2) The obtaining of a consumer report under this subsection is deemed to be a circumstance or purpose authorized or listed under section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b).”. (2) Returns Relating to Cancellation of Indebtedness by Certain Entities.— (A) In general.— Subsection (a) of section 6050P of the Internal Revenue Code of 1986 (relating to returns relating to the cancellation of indebtedness by certain financial entities) is amended by striking “applicable financial entity” and inserting “applicable entity”. (B) Entities to which requirement applies.— Subsection (c) of section 6050P of such Code is amended— (i) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively, and inserting before paragraph (2) (as so redesignated) the following new paragraph: “(1) Applicable entity.—The term ‘applicable entity means— “(A) an executive, judicial, or legislative agency (as defined in section 3701(a)(4) of title 31, United States Code), and “(B) an applicable financial entity.”, and (ii) in paragraph (3), as so redesignated, by striking “(1)(B)” and inserting “(1)(A) or (2)(B)”. (C) Alternative procedure.— Section 6050P of such Code is amended by adding at the end the following new subsection: “(e) Alternative Procedure.— In lieu of making a return required under subsection (a), an agency described in subsection (c)(1)(A) may submit to the Secretary (at such time and in such form as the Secretary may by regulations prescribe) information sufficient for the Secretary to complete such a return on behalf of such agency. Upon receipt of such information, the Secretary shall complete such return and provide a copy of such return to such agency.” (D) Conforming amendments.— (i) Subsection (d) of section 6050P of such Code is amended by striking “applicable financial entity” and inserting “applicable entity”. (ii) The heading of section 6050P of such Code is amended to read as follows: “SEC. 6050P. RETURNS RELATING TO THE CANCELLATION OF INDEBTEDNESS BY CERTAIN ENTITIES.” (iii) The table of sections for subpart B of part III of subchapter A of chapter 61 of such Code is amended by striking the item relating to section 6050P and inserting the following new item: “Sec. 6050P. Returns relating to the cancellation of indebtedness by certain entities.” (n) EfTective date.31 USC 3711 note. Effective October 1, 1995, section 11 of the Administrative Dispute Resolution Act (Public Law 101–552, 5 U.S.C. 571 note) shall not apply to the amendment made by section 8(b) of such Act. (o) (1) In General.— Chapter 37 of title 31, United States Code, is amended in subchapter II by adding after section 3720C, as added by subsection (t) of this section, the following new section: “§ 3720D. Garnishment “(a) Notwithstanding any provision of State law, the head of an executive, judicial, or legislative agency that administers a program that gives rise to a delinquent nontax debt owed to the United States by an individual may in accordance with this section garnish the disposable pay of the individual to collect the amount owed, if the individual is not currently making required repayment in accordance with any agreement between the agency head and the individual. “(b) In carrying out any garnishment of disposable pay of an individual under subsection (a), the head of an executive, judicial, or legislative agency shall comply with the following requirements: “(1) The amount deducted under this section for any pay period may not exceed 15 percent of disposable pay, except that a greater percentage may be deducted with the written consent of the individual. “(2) Notification. The individual shall be provided written notice, sent by mail to the individual’s last known address, a minimum of 30 days prior to the initiation of proceedings, from the head of the executive, judicial, or legislative agency, informing the individual of— “(A) the nature and amount of the debt to be collected; “(B) the intention of the agency to initiate proceedings to collect the debt through deductions from pay; and “(C) an explanation of the rights of the individual under this section. “(3) The individual shall be provided an opportunity to Records. inspect and copy records relating to the debt. “(4) The individual shall be provided an opportunity to Contracts. enter into a written agreement with the executive, judicial, or legislative agency, under terms agreeable to the head of the agency, to establish a schedule for repayment of the debt. “(5) The individual shall be provided an opportunity for a hearing in accordance with subsection (c) on the determination of the head of the executive, judicial, or legislative agency concerning— “(A) the existence or the amount of the debt, and “(B) in the case of an individual whose repayment schedule is established other than by a written agreement pursuant to paragraph (4), the terms of the repayment schedule. “(6) If the individual has been reemployed within 12 months after having been involuntarily separated from employment, no amount may be deducted from the disposable pay of the individual until the individual has been reemployed continuously for at least 12 months. “(c) (1) A hearing under subsection (b)(5) shall be provided prior to issuance of a garnishment order if the individual, on or before the 15th day following the mailing of the notice described in subsection (b)(2), and in accordance with such procedures as the head of the executive, judicial, or legislative agency may prescribe, files a petition requesting such a hearing. “(2) If the individual does not file a petition requesting a hearing prior to such date, the head of the agency shall provide the individual a hearing under subsection (a)(5) upon request, but such hearing need not be provided prior to issuance of a garnishment order. “(3) The hearing official shall issue a final decision at the earliest practicable date, but not later than 60 days after the filing of the petition requesting the hearing. “(d) The notice to the employer of the withholding order shall contain only such information as may be necessary for the employer to comply with the withholding order. “(e) (1) An employer may not discharge from employment, refuse to employ, or take disciplinary action against an individual subject to wage withholding in accordance with this section by reason of the fact that the individual’s wages have been subject to garnishment under this section, and such individual may sue in a State or Federal court of competent jurisdiction any employer who takes such action. “(2) The court shall award attorneys’ fees to a prevailing Courts. employee and, in its discretion, may order reinstatement of the individual, award punitive damages and back pay to the employee, or order such other remedy as may be reasonably necessary. “(f) (1) The employer of an individual— “(A) shall pay to the head of an executive, judicial, or legislative agency as directed in a withholding order issued in an action under this section with respect to the individual, and “(B) shall be liable for any amount that the employer fails to withhold from wages due an employee following receipt by such employer of notice of the withholding order, plus attorneys’ fees, costs, and, in the court’s discretion, punitive damages. “(2) (A) The head of an executive, judicial, or legislative agency may sue an employer in a State or Federal court of competent jurisdiction to recover amounts for which the employer is liable under paragraph (1)(B). “(B) A suit under this paragraph may not be filed before the termination of the collection action, unless earlier filing is necessary to avoid expiration of any applicable statute of limitations period. “(3) Notwithstanding paragraphs (1) and (2), an employer shall not be required to vary its normal pay and disbursement cycles in order to comply with this subsection. “(g) For the purpose of this section, the term ‘disposable pay’ means that part of the compensation of any individual from an employer remaining after the deduction of any amounts required by any other law to be withheld. “(h) Regulations. The Secretary of the Treasury shall issue regulations to implement this section.”. (2) Clerical Amendment.— The table of sections for subchapter II of chapter 37 of title 31, United States Code, is amended by inserting after the item relating to section 3720C (as added by subsection (t) of this section) the following new item: “3720D. Garnishment.”. (p) Section 3711 of title 31, United States Code, as amended by subsection (m) of this section, is further amended by adding at the end the following new subsection: “(i) (1) The head of an executive, judicial, or legislative agency may sell, subject to section 504(b) of the Federal Credit Reform Act of 1990 and using competitive procedures, any nontax debt owed to the United States that is delinquent for more than 90 days. Appropriate fees charged by a contractor to assist in the conduct of a sale under this subsection may be payable from the proceeds of the sale. “(2) After terminating collection action, the head of an executive, judicial, or legislative agency shall sell, using competitive procedures, any nontax debt or class of nontax debts owed to the United States, if the Secretary of the Treasury determines the sale is in the best interests of the United States. “(3) Sales of nontax debt under this subsection— “(A) shall be for— “(i) cash, or “(ii) cash and a residuary equity or profit participation, if the head of the agency reasonably determines that the proceeds will be greater than sale solely for cash, “(B) shall be without recourse, but may include the use of guarantees if otherwise authorized, and “(C) shall transfer to the purchaser all rights of the Government to demand payment of the nontax debt, other than with respect to a residuary equity or profit participation under subparagraph (A)(ii). “(4)Reports. (A) Within one year after the date of enactment of the Debt Collection Improvement Act of 1996, each executive agency with current and delinquent collateralized nontax debts shall report to the Congress on the valuation of its existing portfolio of loans, notes and guarantees, and other collateralized debts based on standards developed by the Director of the Office of Management and Budget, in consultation with the Secretary of the Treasury. “(B) The Director of the Office of Management and Budget shall determine what information is required to be reported to comply with subparagraph (A). At a minimum, for each financing account and for each liquidating account (as those terms are defined in sections 502(7) and 502(8), respectively, of the Federal Credit Reform Act of 1990) the following information shall be reported: “(i) The cumulative balance of current debts outstanding, the estimated net present value of such debts, the annual administrative expenses of those debts (including the portion of salaries and expenses that are directly related thereto), and the estimated net proceeds that would be received by the Government if such debts were sold. “(ii) The cumulative balance of delinquent debts, debts outstanding, the estimated net present value of such debts, the annual administrative expenses of those debts (including the portion of salaries and expenses that are directly related thereto), and the estimated net proceeds that would be received by the Government if such debts were sold. “(iii) The cumulative balance of guaranteed loans outstanding, the estimated net present value of such guarantees, the annual administrative expenses of such guarantees (including the portion of salaries and expenses that are directly related to such guaranteed loans), and the estimated net proceeds that would be received by the Government if such loan guarantees were sold. “(iv) The cumulative balance of defaulted loans that were previously guaranteed and have resulted in loans receivables, the estimated net present value of such loan assets, the annual administrative expenses of such loan assets (including the portion of salaries and expenses that are directly related to such loan assets), and the estimated net proceeds that would be received by the Government if such loan assets were sold. “(v) The marketability of all debts. “(5) This subsection is not intended to limit existing statutory authority of agencies to sell loans, debts, or other assets.”. (q) Section 3717 of title 31, United States Code, is amended by adding at the end of subsection (h) the following new subsection: “(i) (1) The head of an executive, judicial, or legislative agency may increase an administrative claim by the cost of living adjustment in lieu of charging interest and penalties under this section. Adjustments under this subsection will be computed annually. “(2) For the purpose of this subsection— “(A) the term ‘cost of living adjustment’ means the percentage by which the Consumer Price Index for the month of June of the calendar year preceding the adjustment exceeds the Consumer Price Index for the month of June of the calendar year in which the claim was determined or last adjusted; and “(B) the term ‘administrative claim’ includes all debt that is not based on an extension of Government credit through direct loans, loan guarantees, or insurance, including fines, penalties, and overpayments.”. (r) (1) In General.— Chapter 37 of title 31, United States Code, is amended in subchapter II by adding after section 3720D, as added by subsection (o) of this section, the following new section: “§3720E. Dissemination of information regarding identity of delinquent debtors “(a) The head of any agency may, with the review of the Secretary of the Treasury, for the purpose of collecting any delinquent nontax debt owed by any person, publish or otherwise publicly disseminate information regarding the identity of the person and the existence of the nontax debt. “(b)Regulations. (1) The Secretary of the Treasury, in consultation with the Director of the Office of Management and Budget and the heads of other appropriate Federal agencies, shall issue regulations establishing procedures and requirements the Secretary considers appropriate to carry out this section. “(2) Regulations under this subsection shall include— “(A) standards for disseminating information that maximize collections of delinquent nontax debts, by directing actions under this section toward delinquent debtors that have assets or income sufficient to pay their delinquent nontax debt; “(B) procedures and requirements that prevent dissemination of information under this section regarding persons who have not had an opportunity to verify, contest, and compromise their nontax debt in accordance with this subchapter; and “(C) procedures to ensure that persons are not incorrectly identified pursuant to this section.”. (2) Clerical Amendment.— The table of sections for subchapter II of chapter 37 of title 31, United States Code, is amended by adding after the item relating to section 3720D (as added by subsection (o) of this section) the following new item: “3720E. Dissemination of information regarding identity of delinquent debtors.”. (s) (1) In General.— The Federal Civil Penalties Inflation Adjustment Act of 1990 (Public Law 101–410, 104 Stat. 890; 28 U.S.C. 2461 note) is amended— (A) by amending section 4 to read as follows: “Sec. 4. The head of each agency shall, not later than 180 days after the date of enactment of the Debt Collection Improvement Act of 1996, and at least once every 4 years thereafter— “(1) Regulations. by regulation adjust each civil monetary penalty provided by law within the jurisdiction of the Federal agency, except for any penalty (including any addition to tax and additional amount) under the Internal Revenue Code of 1986, the Tariff Act of 1930, the Occupational Safety and Health Act of 1970, or the Social Security Act, by the inflation adjustment described under section 5 of this Act; and “(2) Federal Register, publication. publish each such regulation in the Federal Register.”; (B) in section 5(a), by striking “The adjustment described under paragraphs (4) and (5)(A) of section 4” and inserting “The inflation adjustment under section 4”; and (C) by adding at the end the following new section: “Sec. 7. Any increase under this Act in a civil monetary penalty shall apply only to violations which occur after the date the increase takes effect.”. (2) 28 USC 2461 note. Limitation on Initial Adjustment.—The first adjustment of a civil monetary penalty made pursuant to the amendment made by paragraph (1) may not exceed 10 percent of such penalty. (t) (1) In General.— Title 31, United States Code, is amended by inserting after section 3720B (as added by subsection (j) of this section) the following new section: “§ 3720C. Debt Collection Improvement Account “(a) (1) There is hereby established in the Treasury a special Nomenclature. fund to be known as the ‘Debt Collection Improvement Account’ (hereinafter in this section referred to as the ‘Account’). “(2) The Account shall be maintained and managed by the Secretary of the Treasury, who shall ensure that agency programs are credited with amounts transferred under subsection (b)(1). “(b) (1) Not later than 30 days after the end of a fiscal year, an agency may transfer to the Account the amount described in paragraph (3), as adjusted under paragraph (4). “(2) Agency transfers to the Account may include collections from— “(A) salary, administrative, and tax refund offsets; “(B) the Department of Justice; “(C) private collection agencies; “(D) sales of delinquent loans; and “(E) contracts to locate or recover assets. “(3) The amount referred to in paragraph (1) shall be 5 percent of the amount of delinquent debt collected by an agency in a fiscal year, minus the greater of— “(A) 5 percent of the amount of delinquent nontax debt collected by the agency in the previous fiscal year, or “(B) 5 percent of the average annual amount of delinquent nontax debt collected by the agency in the previous 4 fiscal years. “(4) In consultation with the Secretary of the Treasury, the Office of Management and Budget may adjust the amount described in paragraph (3) for an agency to reflect the level of effort in credit management programs by the agency. As an indicator of the level of effort in credit management, the Office of Management and Budget shall consider the following: “(A) The number of days between the date a claim or debt became delinquent and the date which an agency referred the debt or claim to the Secretary of the Treasury or obtained an exemption from this referral under section 3711(g)(2) of this title. “(B) The ratio of delinquent debts or claims to total receivables for a given program, and the change in this ratio over a period of time. “(c) (1) The Secretary of the Treasury may make payments from the Account solely to reimburse agencies for qualified expenses. For agencies with franchise funds, such payments may be credited to subaccounts designated for debt collection. “(2) For purposes of this section, the term ‘qualified expenses’ means expenditures for the improvement of credit management, debt collection, and debt recovery activities, including— “(A) account servicing (including cross-servicing under section 3711(g) of this title), “(B) automatic data processing equipment acquisitions, “(C) delinquent debt collection, “(D) measures to minimize delinquent debt, “(E) sales of delinquent debt, “(F) asset disposition, and “(G) training of personnel involved in credit and debt management. “(3) (A) Amounts transferred to the Account shall be available to the Secretary of the Treasury for purposes of this section to “(b) Subject to section 8435 of this title, any employee or Member who separates from Government employment is entitled and may elect to withdraw from the Thrift Savings Fund the balance of the employee’s or Member’s account as— “(1) an annuity; “(2) a single payment; “(3) 2 or more substantially equal payments to be made not less frequently than annually; or “(4) any combination of payments as provided under paragraphs (1) through (3) as the Executive Director may prescribe by regulation. “(c) (1) In addition to the right provided under subsection (b) to withdraw the balance of the account, an employee or Member who separates from Government service and who has not made a withdrawal under subsection (h)(1)(A) may make one withdrawal of any amount as a single payment in accordance with subsection (b)(2) from the employee’s or Member’s account. “(2) An employee or Member may request that the amount withdrawn from the Thrift Savings Fund in accordance with subsection (b)(2) be transferred to an eligible retirement plan. “(3) The Executive Director shall make each transfer elected under paragraph (2) directly to an eligible retirement plan or plans (as defined in section 402(c)(8) of the Internal Revenue Code of 1986) identified by the employee, Member, former employee, or former Member for whom the transfer is made. “(4) A transfer may not be made for an employee, Member, former employee, or former Member under paragraph (2) until the Executive Director receives from that individual the information required by the Executive Director specifically to identify the eligible retirement plan or plans to which the transfer is to be made.”; (2) in subsection (d)— (A) in paragraph (1) by striking out “Subject to paragraph (3)(A)” and inserting in lieu thereof “Subject to paragraph (3)”; (B) by striking out paragraph (2) and redesignating paragraph (3) as paragraph (2); and (C) in paragraph (2) (as redesignated under subparagraph (B) of this paragraph)— (i) in subparagraph (A) by striking out “(A)”; and (ii) by striking out subparagraph (B); (3) in subsection (f)(1)— (A) by striking out “$3,500 or less” and inserting in lieu thereof “less than an amount that the Executive Director prescribes by regulation”; and (B) by striking out “unless the employee or Member elects, at such time and otherwise in such manner as the Executive Director prescribes, one of the options available under subsection (b), or” and inserting a comma; (4) in subsection (f)(2)— (A) by striking out “February 1” and inserting in lieu thereof “April 1”; (B) in subparagraph (A)— (i) by striking out “65” and inserting in lieu thereof “70 ½”; and (ii) by inserting “or” after the semicolon; (C) by striking out subparagraph (B); and “(A) the occurrence of an offset to satisfy a past-due legally enforceable nontax debt; “(B) the identity of the creditor agency requesting the offset; and “(C) a contact point within the creditor agency that will handle concerns regarding the offset; “(2) shall notify the Internal Revenue Service on a weekly Notification. basis of— “(A) the occurrence of an offset to satisfy a past-due legally enforceable non-tax debt; “(B) the amount of such offset; and “(C) any other information required by regulations; and “(3) shall match payment records with requests for offset Records. by using a name control, taxpayer identifying number (as that term is used in section 6109 of the Internal Revenue Code of 1986), and any other necessary identifiers.”. “(h) (2) The term ‘disbursing official’ of the Department of the Treasury means the Secretary or his designee.” (x) (1) Amendments Relating to Electronic Funds Transfer.— Section 3332 of title 31, United States Code, popularly known as the Federal Financial Management Act of 1994, is amended— (A) by redesignating subsection (e) as subsection (h), and inserting after subsection (d) the following new subsections: “(e) (1) Notwithstanding subsections (a) through (d) of this section, sections 5120 (a) and (d) of title 38, and any other provision of law, all Federal payments to a recipient who becomes eligible for that type of payment after 90 days after the date of the enactment of the Debt Collection Improvement Act of 1996 shall be made by electronic funds transfer. “(2) The head of a Federal agency shall, with respect to Federal payments made or authorized by the agency, waive the application of paragraph (1) to a recipient of those payments upon receipt of written certification from the recipient that the recipient does not have an account with a financial institution or an authorized payment agent. “(f) (1) Notwithstanding any other provision of law (including subsections (a) through (e) of this section and sections 5120 (a) and (d) of title 38), except as provided in paragraph (2) all Federal payments made after January 1, 1999, shall be made by electronic funds transfer. “(2) (A) The Secretary of the Treasury may waive application of this subsection to payments— “(i) for individuals or classes of individuals for whom compliance imposes a hardship; “(ii) for classifications or types of checks; or “(iii) in other circumstances as may be necessary. “(B) The Secretary of the Treasury shall make determinations under subparagraph (A) based on standards developed by the Secretary. “(g) Each recipient of Federal payments required to be made by electronic funds transfer shall— “(1) designate 1 or more financial institutions or other authorized agents to which such payments shall be made; and “(2) provide to the Federal agency that makes or authorizes the payments information necessary for the recipient to receive electronic funds transfer payments through each institution or agent designated under paragraph (1).”; and (B) by adding after subsection (h) (as so redesignated) the following new subsections: “(i) (1) The Secretary of the Treasury may prescribe regulations that the Secretary considers necessary to carry out this section. “(2) Regulations under this subsection shall ensure that individuals required under subsection (g) to have an account at a financial institution because of the application of subsection (f)(1)— “(A) will have access to such an account at a reasonable cost; and “(B) are given the same consumer protections with respect to the account as other account holders at the same financial institution. “(j) For purposes of this section— “(1) The term ‘electronic funds transfer’ means any transfer of funds, other than a transaction originated by cash, check, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape, for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account. The term includes Automated Clearing House transfers, Fed Wire transfers, transfers made at automatic teller machines, and point-of-sale terminals. “(2) The term ‘Federal agency’ means— “(A) an agency (as defined in section 101 of this title); and “(B) a Government corporation (as defined in section 103 of title 5). “(3) The term ‘Federal payments’ includes— “(A) Federal wage, salary, and retirement payments; “(B) vendor and expense reimbursement payments; and “(C) benefit payments. Such term shall not include any payment under the Internal Revenue Code of 1986.” (2) Amendments Relating to Substitute Checks.— Section 3331 of title 31, United States Code, is amended— (A) in subsection (b), by striking “subsection (c)” and inserting “subsection (c) or (f)”; (B) by redesignating subsection (f) as subsection (g); and (C) by inserting after subsection (e) the following new subsection: “(f) The Secretary may waive any provision of this section as may be necessary to ensure that claimants receive timely payments.”. (3) Permanent Funding of the Check Forgery Insurance Fund.— Section 3343 of title 31, United States Code, is amended— (A) in subsection (a), by amending the second sentence to read as follows: “Necessary amounts are hereafter appropriated to the Fund out of any moneys in the Treasury not otherwise appropriated, and shall remain available until expended to make the payments required or authorized under this section.”; (B) in subsection (b)— (i) by inserting “in the determination of the Secretary the payee or special endorse establishes that” after “without interest if”; (ii) in paragraph (2), by inserting “and” after the semicolon; (iii) in paragraph (3), by striking “; and” and inserting a period; and (iv) by striking paragraph (4); (C) in subsection (a), by inserting after the first sentence the following new sentence: “The Secretary may use amounts in the Fund to reimburse payment certifying or authorizing agencies for any payment that the Secretary determines would otherwise have been payable from the Fund, and may reimburse certifying or authorizing agencies with amounts recovered because of payee nonentitlement.”; (D) by redesignating subsection (e) as subsection (g); and (E) by inserting after subsection (d) the following new subsections: “(e) The Secretary may waive any provision of this section as may be necessary to ensure that claimants receive timely payments. “(f) Under such conditions as the Secretary may prescribe, the Secretary may delegate duties and powers of the Secretary under this section to the head of an agency. Consistent with a delegation from the Secretary under this subsection, the head of an agency may redelegate those duties and powers to officers or employees of the agency.”. (y) Section 3325 of title 31, United States Code, is amended by addingat the end the following new subsection: “(d) The head of an executive agency or an officer or employee of an executive agency referred to in subsection (a)(1)(B), as applicable, shall include with each certified voucher submitted to a disbursing official pursuant to this section the taxpayer identifying number of each person to whom payment may be made under the voucher.” (z) (1) In general.— Section 3701 of title 31, United States Code, is amended— (A) by amending subsection (a)(1) to read as follows: “(1) ‘administrative offset’ means withholding funds payable by the United States (including funds payable by the United States on behalf of a State government) to, or held by the United States for, a person to satisfy a claim.”; (B) by amending subsection (b) to read as follows: “(b) (1) In subchapter II of this chapter and subsection (a)(8) of this section, the term ‘claim’ or ‘debt’ means any amount of funds or property that has been determined by an appropriate official of the Federal Government to be owed to the United States by a person, organization, or entity other than another Federal agency. A claim includes, without limitation— “(A) funds owed on account of loans made, insured, or guaranteed by the Government, including any deficiency or any difference between the price obtained by the Government in the sale of a property and the amount owed to the Government on a mortgage on the property, “(B) expenditures of non appropriated funds, “(C) over-payments, including payments disallowed by audits performed by the Inspector General of the agency administering the program, “(D) any amount the United States is authorized by statute to collect for the benefit of any person, “(E) the unpaid share of any non-Federal partner in a program involving a Federal payment and a matching, or cost-sharing, payment by the non-Federal partner, “(F) any fines or penalties assessed by an agency; and “(G) other amounts of money or property owed to the Government. “(2) For purposes of section 3716 of this title, each of the terms ‘claim’ and ‘debt’ includes an amount of funds or property owed by a person to a State (including any past-due support being enforced by the State), the District of Columbia, American Samoa, Guam, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, or the Commonwealth of Puerto Rico.”; (C) by adding after subsection (d) the following new subsection: “(e) In section 3716 of this title— “(1) ‘creditor agency’ means any agency owed a claim that seeks to collect that claim through administrative offset; and “(2) ‘payment certifying agency’ means any agency that has transmitted a voucher to a disbursing official for disbursement. “(f) In section 3711 of this title, ‘private collection contractor’ means private debt collectors under contract with an agency to collect a nontax debt or claim owed the United States. The term includes private debt collectors, collection agencies, and commercial attorneys.”; and (D) by amending subsection (d) to read as follows: “(d) Sections 3711(f) and 3716–3719 of this title do not apply to a claim or debt under, or to an amount payable under— “(1) the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.), “(2) the Social Security Act (42 U.S.C. 301 et seq.), except to the extent provided under section 204(f) of such Act and section 3716(c) of this title, or “(3) the tariff laws of the United States.”. (2) Social Security.— (A) Application of amendments made by this act.— Subsection (f) of section 204 of the Social Security Act (42 U.S.C. 404) is amended to read as follows: “(f) (1) With respect to any deliquent amount, the Commissioner of Social Security may use the collection practices described in sections 3711(f), 3716, 3717, and 3718 of title 31, United States Code and in section 5514 of title 5, United States Code, as in effect immediately after the enactment of the Debt Collection Improvement Act of 1996.” (B) Permanent application.— Subsection (c) of section 5 of the Social Security Domestic Reform Act of 1994 (Public 31 USC 3701 note. Law 103–387) is amended by striking “and before” and all that follows and inserting a period. (aa)31 USC 3711 note. (1) Guidelines.— The Secretary of the Treasury, in consultation with concerned Federal agencies, may establish guidelines, including information on outstanding debt, to assist agencies in the performance and monitoring of debt collection activities. (2) 31 USC 3711 note. Report.— Not later than 3 years after the date of enactment of this Act, the Secretary of the Treasury shall report to the Congress on collection services provided by Federal agencies or entities collecting debt on behalf of other Federal agencies under the authorities contained in section 3711(g) of title 31, United States Code, as added by subsection (m) of this section. (3) Agency Reports.— Section 3719 of title 31, United States Code, is amended— (A) in subsection (a)— (i) by amending the first sentence to read as follows: Regulations. “In consultation with the Comptroller General of the United States, the Secretary of the Treasury shall prescribe regulations requiring the head of each agency with outstanding nontax claims to prepare and submit to the Secretary at least once each year a report summarizing the status of loans and accounts receivable that are managed by the head of the agency.”; and (ii) in paragraph (3), by striking “Director” and inserting “Secretary”; and (B) in subsection (b), by striking “Director” and inserting “Secretary”. (4) Consolidation of Reports.— Notwithstanding any other 31 USC 3719 note. provision of law, the Secretary of the Treasury may consolidate reports concerning debt collection otherwise required to be submitted by the Secretary into one annual report. (bb) The Director of the Office of Management and Budget 31 USC 3711 note. shall— (1) review the standards and policies of each Federal agency for compromising, writing-down, forgiving, or discharging indebtedness arising from programs of the agency ; (2) determine whether those standards and policies are consistent and protect the interests of the United States; (3) in the case of any Federal agency standard or policy that the Director determines is not consistent or does not protect the interests of the United States, direct the head of the agency to make appropriate modifications to the standard or policy; and (4) report annually to the Congress on— (A) deficiencies in the standards and policies of Federal agencies for compromising, writing-down, forgiving, or discharging indebtedness; and (B) progress made in improving those standards and policies. (cc) (1) Elimination of Minimum Number of Contracts.— Section 3718(b)(1)(A) of title 31, United States Code, is amended by striking the fourth sentence. (2) Repeal.— Sections 3 and 5 of the Act of October 28, 1986 (popularly known as the Federal Debt Recovery Act; Public Law 99–578, 100 Stat. 3305) are hereby repealed. 31 USC 3718 notes.Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Pub. L. 104–193 § 110 · 110 Stat. 2105
Repealed · 26 U.S.C. § 6402(a)
Pub. L. 104–193, § 110(l)(7)(A), which directed substitution of “(c), (d), and (e)” for “(c) and (d)”, was repealed by Pub. L. 105–33
Source evidence
Code amendment note
Subsec. (a). Pub. L. 104–193, § 110(l)(7)(A), which directed substitution of “(c), (d), and (e)” for “(c) and (d)”, was repealed by Pub. L. 105–33.Enacted provision · exact public law section
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS. (a) Subsection (b) of section 508 of the Unemployment Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–566; 90 Stat. 2689) is amended to read as follows: “(b) Provision for Reimbursement of Expenses.— For purposes of section 455 of the Social Security Act, expenses incurred to reimburse State employment offices for furnishing information requested of such offices— “(1) pursuant to the third sentence of section 3(a) of the Act entitled ‘An Act to provide for the establishment of a national employment system and for cooperation with the States in the promotion of such system, and for other purposes’, approved June 6, 1933 (29 U.S.C. 49b(a)), or “(2) by a State or local agency charged with the duty of carrying a State plan for child support approved under part D of title IV of the Social Security Act, shall be considered to constitute expenses incurred in the administration of such State plan ”. (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed. (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed. (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC of certain rental payments for federally assisted housing, is repealed. (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 1982 (42 U.S.C. 602 note) is repealed. (f) Section 202(d) of the Social Security Amendments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed. (g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating to demonstration projects to reduce number of AFDC families in welfare hotels, is amended— (1) in subsection (a), by striking “aid to families with dependent children under a State plan approved” and inserting “assistance under a State program funded”, and (2) in subsection (c), by striking “aid to families with dependent children in the State under a State plan approved” and inserting “assistance in the State under a State program funded”. (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended— (1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by striking “(Aid to Families with Dependent Children)”; and (2) in section 480(b)(2) (20 U.S.C. 1087w(b)(2)), by striking “aid to families with dependent children under a State plan approved” and inserting “assistance under a State program funded”. (i) The Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.) is amended— (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), by striking “The program for aid to dependent children” and inserting “Die State program funded”; (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by striking “the program for aid to families with dependent children” and inserting “the State program funded”; and (3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), by striking “the program for aid to families with dependent children” and inserting “the State program funded”. (j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 et seq.) is amended— (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking “Aid to Families with Dependent Children program” and inserting “State program funded under part A of title IV of the Social Security Act”; (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking “the program of aid to families with dependent children under a State plan approved under” and inserting “a State program funded under part A of”; and (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))— (A) in subparagraph (A)(xi), by striking “Aid to Families with Dependent Children benefits” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”; and (B) in subparagraph (B)(viii), by striking “Aid to Families with Dependent Children” and inserting “assistance under the State program funded under part A of title IV of the Social Security Act”. (k) The 4th proviso of chapter VII of title I of Public Law 99–88 (25 U.S.C. 13d–1) is amended to read as follows: “Provided further, That general assistance payments made by the Bureau of Indian Affairs shall be made— “(1) after April 29, 1985, and before October 1, 1995, on the basis of Aid to Families with Dependent Children (AFDC) standards of need; and “(2) on and after October 1, 1995, on the basis of standards of need established under the State program funded under part A of title IV of the Social Security Act, except that where a State ratably reduces its AFDC or State program payments, the Bureau shall reduce general assistance pay-ments in such State by the same percentage as the State has reduced the AFDC or State program payment.”. (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is amended— (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all that follows “agency as” and inserting “being eligible for financial assistance under part A of title IV of the Social Security Act and as having continually received such financial assistance during the 90-day period which immediately precedes the date on which such individual is hired by the employer.”; (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking “eligibility for aid or services,” and all that follows through “children approved” and inserting “eligibility for assistance, or the amount of such assistance, under a State program funded”; (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), by striking “aid to families with dependent children provided under a State plan approved” and inserting “a State program funded”; (4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10),— (A) by striking “(c) or (d)” each place it appears and inserting “(c), (d), or (e)”; and (B) by adding at the end of subparagraph (B) the following new sentence: “Any return information disclosed with respect to section 6402(e) shall only be disclosed to officers and employees of the State agency requesting such information.”; (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter preceding subparagraph (A)— (A) by striking “(5), (10)” and inserting “(5)”; and (B) by striking “(9), or (12)” and inserting “(9), (10), or (12)”; (6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by striking “(relating to aid to families with dependent children)”; (7) in section 6402 (26 U.S.C. 6402)— (A) in subsection (a), by striking “(c) and (d)” and inserting “(c), (d), and (e)”; (B) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and (C) by inserting after subsection (d) the following: “(e) Collection of Overpayments Under Title IV-A of the Social Security Act.— The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).”; and (8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by striking “aid to families with dependent children” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”. (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is amended by striking “State plan approved under part A of title IV” and inserting “State program funded under part A of title IV”. (n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is amended— (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking “(42 U.S.C. 601 et seq.)”; (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking “State aid to families with dependent children records,” and inserting “records collected under the State program funded under part A of title IV of the Social Security Act,”; (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))— (A) by striking “the JOBS program” and inserting “the work activities required under title IV of the Social Security Act”; and (B) by striking the second sentence; (4) in section 123(c) (29 U.S.C. 1533(c))— (A) in paragraph (1)(E), by repealing clause (vi); and (B) in paragraph (2)(D), by repealing clause (v); (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking “, including recipients under the JOBS program”; (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 U.S.C. 1604(a)(1)(A) and (B)), by striking “(such as the JOBS program)” each place it appears; (7) in section 205(a) (29 U.S.C. 1605(a)), by striking paragraph (4) and inserting the following: “(4) the portions of title IV of the Social Security Act relating to work activities;”; (8) in section 253 (29 U.S.C. 1632)— (A) in subsection (b)(2), by repealing subparagraph (C); and (B) in paragraphs (1)(B) and (2)(B) of subsection (c), by striking “the JOBS program or” each place it appears; (9) in section 264 (29 U.S.C. 1644)— (A) in subparagraphs (A) and (B) of subsection (b)(1), by striking “(such as the JOBS program)” each place it appears; and (B) in subparagraphs (A) and (B) of subsection (d)(3), by striking “and the JOBS program” each place it appears; (10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6) and inserting the following: “(6) the portion of title IV of the Social Security Act relating to work activities;”; (11) in the second sentence of section 429(e) (29 U.S.C. 1699(e)), by striking “and shall be in an amount that does not exceed the maximum amount that may be provided by the State pursuant to section 402(g)(1)(C) of the Social Security Act (42 U.S.C. 602(g)(1)(O)”; (12) in section 454(c) (29 U.S.C. 1734(c)), by striking “JOBS and”; (13) in section 455(b) (29 U.S.C. 1735(b)), by striking “the JOBS program,”; (14) in section 501(1) (29 U.S.C. 1791(1)), by striking “aid to families with dependent children under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)” and inserting “assistance under the State program funded under part A of title IV of the Social Security Act”, (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking “aid to families with dependent children” and inserting “assistance under the State program funded”; (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by striking “aid to families with dependent children” and inserting “assistance under the State program funded”; and (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))— (A) in clause (v), by striking the semicolon and inserting “; and”; and (B) by striking clause (vi). (o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is amended to read as follows: “(iv) assistance under a State program funded under part A of title IV of the Social Security Act;”. (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read as follows: “(i) assistance under the State program funded under part A of title IV of the Social Security Act;”, (q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 602 note) is amended— (1) by striking “(A)”; and (2) by striking subparagraphs (B) and (C). (r) The Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended— (1) in the first section 255(h) (2 U.S.C. 905(h)), by striking “Aid to families with dependent children (75–0412–(P1–609);” and inserting “Block grants to States for temporary assistance for needy families;”; and (2) in section 256 (2 U.S.C. 906)— (A) by striking subsection (k); and (B) by redesignating subsection (1) as subsection (k). (s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended— (1) in section 210(f) (8 U.S.C. 1160(f)), by striking “aid under a State plan approved under” each place it appears and inserting “assistance under a State program funded under”; (2) in section 245A(h) (8 U.S.C. 1255a(h))— (A) in paragraph (1)(A)(i), by striking “program of aid to families with dependent children” and inserting “State program of assistance”; and (B) in paragraph (2)(B), by striking “aid to families with dependent children” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”; and (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking “State plan approved” and inserting “State program funded”. (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 9835(a)(4)(B)(i)) is amended by striking “program of aid to families with dependent children under a State plan approved” and inserting “State program of assistance funded”. (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 92; 25 U.S.C. 639) is repealed. (v) Subparagraph (E) of section 213(d)(6) of the School-To-Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as follows: “(E) part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) relating to work activities;”. (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, is amended by striking “section 464 or 1137 of the Social Security Act” and inserting “section 404(e), 464, or 1137 of the Social Security Act”.Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Pub. L. 104–193 § 110 · 110 Stat. 2105
Repealed · 26 U.S.C. § 6402(e)
Pub. L. 104–193, § 110(l)(7)(C), which directed amendment by adding subsec. (e), reading as follows: “Collection of Overpayments Under Title IV–A of the Social Security Act.—The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).”, was repealed by Pub. L. 105–33
Source evidence
Code amendment note
Subsec. (e). Pub. L. 104–193, § 110(l)(7)(C), which directed amendment by adding subsec. (e), reading as follows: “Collection of Overpayments Under Title IV–A of the Social Security Act.—The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).”, was repealed by Pub. L. 105–33.Enacted provision · exact public law section
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS. (a) Subsection (b) of section 508 of the Unemployment Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–566; 90 Stat. 2689) is amended to read as follows: “(b) Provision for Reimbursement of Expenses.— For purposes of section 455 of the Social Security Act, expenses incurred to reimburse State employment offices for furnishing information requested of such offices— “(1) pursuant to the third sentence of section 3(a) of the Act entitled ‘An Act to provide for the establishment of a national employment system and for cooperation with the States in the promotion of such system, and for other purposes’, approved June 6, 1933 (29 U.S.C. 49b(a)), or “(2) by a State or local agency charged with the duty of carrying a State plan for child support approved under part D of title IV of the Social Security Act, shall be considered to constitute expenses incurred in the administration of such State plan ”. (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed. (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed. (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC of certain rental payments for federally assisted housing, is repealed. (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 1982 (42 U.S.C. 602 note) is repealed. (f) Section 202(d) of the Social Security Amendments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed. (g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating to demonstration projects to reduce number of AFDC families in welfare hotels, is amended— (1) in subsection (a), by striking “aid to families with dependent children under a State plan approved” and inserting “assistance under a State program funded”, and (2) in subsection (c), by striking “aid to families with dependent children in the State under a State plan approved” and inserting “assistance in the State under a State program funded”. (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended— (1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by striking “(Aid to Families with Dependent Children)”; and (2) in section 480(b)(2) (20 U.S.C. 1087w(b)(2)), by striking “aid to families with dependent children under a State plan approved” and inserting “assistance under a State program funded”. (i) The Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.) is amended— (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), by striking “The program for aid to dependent children” and inserting “Die State program funded”; (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by striking “the program for aid to families with dependent children” and inserting “the State program funded”; and (3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), by striking “the program for aid to families with dependent children” and inserting “the State program funded”. (j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 et seq.) is amended— (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking “Aid to Families with Dependent Children program” and inserting “State program funded under part A of title IV of the Social Security Act”; (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking “the program of aid to families with dependent children under a State plan approved under” and inserting “a State program funded under part A of”; and (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))— (A) in subparagraph (A)(xi), by striking “Aid to Families with Dependent Children benefits” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”; and (B) in subparagraph (B)(viii), by striking “Aid to Families with Dependent Children” and inserting “assistance under the State program funded under part A of title IV of the Social Security Act”. (k) The 4th proviso of chapter VII of title I of Public Law 99–88 (25 U.S.C. 13d–1) is amended to read as follows: “Provided further, That general assistance payments made by the Bureau of Indian Affairs shall be made— “(1) after April 29, 1985, and before October 1, 1995, on the basis of Aid to Families with Dependent Children (AFDC) standards of need; and “(2) on and after October 1, 1995, on the basis of standards of need established under the State program funded under part A of title IV of the Social Security Act, except that where a State ratably reduces its AFDC or State program payments, the Bureau shall reduce general assistance pay-ments in such State by the same percentage as the State has reduced the AFDC or State program payment.”. (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is amended— (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all that follows “agency as” and inserting “being eligible for financial assistance under part A of title IV of the Social Security Act and as having continually received such financial assistance during the 90-day period which immediately precedes the date on which such individual is hired by the employer.”; (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking “eligibility for aid or services,” and all that follows through “children approved” and inserting “eligibility for assistance, or the amount of such assistance, under a State program funded”; (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), by striking “aid to families with dependent children provided under a State plan approved” and inserting “a State program funded”; (4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10),— (A) by striking “(c) or (d)” each place it appears and inserting “(c), (d), or (e)”; and (B) by adding at the end of subparagraph (B) the following new sentence: “Any return information disclosed with respect to section 6402(e) shall only be disclosed to officers and employees of the State agency requesting such information.”; (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter preceding subparagraph (A)— (A) by striking “(5), (10)” and inserting “(5)”; and (B) by striking “(9), or (12)” and inserting “(9), (10), or (12)”; (6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by striking “(relating to aid to families with dependent children)”; (7) in section 6402 (26 U.S.C. 6402)— (A) in subsection (a), by striking “(c) and (d)” and inserting “(c), (d), and (e)”; (B) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and (C) by inserting after subsection (d) the following: “(e) Collection of Overpayments Under Title IV-A of the Social Security Act.— The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).”; and (8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by striking “aid to families with dependent children” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”. (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is amended by striking “State plan approved under part A of title IV” and inserting “State program funded under part A of title IV”. (n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is amended— (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking “(42 U.S.C. 601 et seq.)”; (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking “State aid to families with dependent children records,” and inserting “records collected under the State program funded under part A of title IV of the Social Security Act,”; (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))— (A) by striking “the JOBS program” and inserting “the work activities required under title IV of the Social Security Act”; and (B) by striking the second sentence; (4) in section 123(c) (29 U.S.C. 1533(c))— (A) in paragraph (1)(E), by repealing clause (vi); and (B) in paragraph (2)(D), by repealing clause (v); (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking “, including recipients under the JOBS program”; (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 U.S.C. 1604(a)(1)(A) and (B)), by striking “(such as the JOBS program)” each place it appears; (7) in section 205(a) (29 U.S.C. 1605(a)), by striking paragraph (4) and inserting the following: “(4) the portions of title IV of the Social Security Act relating to work activities;”; (8) in section 253 (29 U.S.C. 1632)— (A) in subsection (b)(2), by repealing subparagraph (C); and (B) in paragraphs (1)(B) and (2)(B) of subsection (c), by striking “the JOBS program or” each place it appears; (9) in section 264 (29 U.S.C. 1644)— (A) in subparagraphs (A) and (B) of subsection (b)(1), by striking “(such as the JOBS program)” each place it appears; and (B) in subparagraphs (A) and (B) of subsection (d)(3), by striking “and the JOBS program” each place it appears; (10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6) and inserting the following: “(6) the portion of title IV of the Social Security Act relating to work activities;”; (11) in the second sentence of section 429(e) (29 U.S.C. 1699(e)), by striking “and shall be in an amount that does not exceed the maximum amount that may be provided by the State pursuant to section 402(g)(1)(C) of the Social Security Act (42 U.S.C. 602(g)(1)(O)”; (12) in section 454(c) (29 U.S.C. 1734(c)), by striking “JOBS and”; (13) in section 455(b) (29 U.S.C. 1735(b)), by striking “the JOBS program,”; (14) in section 501(1) (29 U.S.C. 1791(1)), by striking “aid to families with dependent children under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)” and inserting “assistance under the State program funded under part A of title IV of the Social Security Act”, (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking “aid to families with dependent children” and inserting “assistance under the State program funded”; (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by striking “aid to families with dependent children” and inserting “assistance under the State program funded”; and (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))— (A) in clause (v), by striking the semicolon and inserting “; and”; and (B) by striking clause (vi). (o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is amended to read as follows: “(iv) assistance under a State program funded under part A of title IV of the Social Security Act;”. (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read as follows: “(i) assistance under the State program funded under part A of title IV of the Social Security Act;”, (q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 602 note) is amended— (1) by striking “(A)”; and (2) by striking subparagraphs (B) and (C). (r) The Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended— (1) in the first section 255(h) (2 U.S.C. 905(h)), by striking “Aid to families with dependent children (75–0412–(P1–609);” and inserting “Block grants to States for temporary assistance for needy families;”; and (2) in section 256 (2 U.S.C. 906)— (A) by striking subsection (k); and (B) by redesignating subsection (1) as subsection (k). (s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended— (1) in section 210(f) (8 U.S.C. 1160(f)), by striking “aid under a State plan approved under” each place it appears and inserting “assistance under a State program funded under”; (2) in section 245A(h) (8 U.S.C. 1255a(h))— (A) in paragraph (1)(A)(i), by striking “program of aid to families with dependent children” and inserting “State program of assistance”; and (B) in paragraph (2)(B), by striking “aid to families with dependent children” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”; and (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking “State plan approved” and inserting “State program funded”. (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 9835(a)(4)(B)(i)) is amended by striking “program of aid to families with dependent children under a State plan approved” and inserting “State program of assistance funded”. (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 92; 25 U.S.C. 639) is repealed. (v) Subparagraph (E) of section 213(d)(6) of the School-To-Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as follows: “(E) part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) relating to work activities;”. (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, is amended by striking “section 464 or 1137 of the Social Security Act” and inserting “section 404(e), 464, or 1137 of the Social Security Act”.Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Pub. L. 104–193 § 110 · 110 Stat. 2105
Redesignated · 26 U.S.C. § 6402(f)
Pub. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsec. (e) as (f), was repealed by Pub. L. 105–33
Source evidence
Code amendment note
Subsec. (f). Pub. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsec. (e) as (f), was repealed by Pub. L. 105–33.Enacted provision · exact public law section
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS. (a) Subsection (b) of section 508 of the Unemployment Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–566; 90 Stat. 2689) is amended to read as follows: “(b) Provision for Reimbursement of Expenses.— For purposes of section 455 of the Social Security Act, expenses incurred to reimburse State employment offices for furnishing information requested of such offices— “(1) pursuant to the third sentence of section 3(a) of the Act entitled ‘An Act to provide for the establishment of a national employment system and for cooperation with the States in the promotion of such system, and for other purposes’, approved June 6, 1933 (29 U.S.C. 49b(a)), or “(2) by a State or local agency charged with the duty of carrying a State plan for child support approved under part D of title IV of the Social Security Act, shall be considered to constitute expenses incurred in the administration of such State plan ”. (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed. (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed. (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC of certain rental payments for federally assisted housing, is repealed. (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 1982 (42 U.S.C. 602 note) is repealed. (f) Section 202(d) of the Social Security Amendments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed. (g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating to demonstration projects to reduce number of AFDC families in welfare hotels, is amended— (1) in subsection (a), by striking “aid to families with dependent children under a State plan approved” and inserting “assistance under a State program funded”, and (2) in subsection (c), by striking “aid to families with dependent children in the State under a State plan approved” and inserting “assistance in the State under a State program funded”. (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended— (1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by striking “(Aid to Families with Dependent Children)”; and (2) in section 480(b)(2) (20 U.S.C. 1087w(b)(2)), by striking “aid to families with dependent children under a State plan approved” and inserting “assistance under a State program funded”. (i) The Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.) is amended— (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), by striking “The program for aid to dependent children” and inserting “Die State program funded”; (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by striking “the program for aid to families with dependent children” and inserting “the State program funded”; and (3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), by striking “the program for aid to families with dependent children” and inserting “the State program funded”. (j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 et seq.) is amended— (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking “Aid to Families with Dependent Children program” and inserting “State program funded under part A of title IV of the Social Security Act”; (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking “the program of aid to families with dependent children under a State plan approved under” and inserting “a State program funded under part A of”; and (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))— (A) in subparagraph (A)(xi), by striking “Aid to Families with Dependent Children benefits” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”; and (B) in subparagraph (B)(viii), by striking “Aid to Families with Dependent Children” and inserting “assistance under the State program funded under part A of title IV of the Social Security Act”. (k) The 4th proviso of chapter VII of title I of Public Law 99–88 (25 U.S.C. 13d–1) is amended to read as follows: “Provided further, That general assistance payments made by the Bureau of Indian Affairs shall be made— “(1) after April 29, 1985, and before October 1, 1995, on the basis of Aid to Families with Dependent Children (AFDC) standards of need; and “(2) on and after October 1, 1995, on the basis of standards of need established under the State program funded under part A of title IV of the Social Security Act, except that where a State ratably reduces its AFDC or State program payments, the Bureau shall reduce general assistance pay-ments in such State by the same percentage as the State has reduced the AFDC or State program payment.”. (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is amended— (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all that follows “agency as” and inserting “being eligible for financial assistance under part A of title IV of the Social Security Act and as having continually received such financial assistance during the 90-day period which immediately precedes the date on which such individual is hired by the employer.”; (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking “eligibility for aid or services,” and all that follows through “children approved” and inserting “eligibility for assistance, or the amount of such assistance, under a State program funded”; (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), by striking “aid to families with dependent children provided under a State plan approved” and inserting “a State program funded”; (4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10),— (A) by striking “(c) or (d)” each place it appears and inserting “(c), (d), or (e)”; and (B) by adding at the end of subparagraph (B) the following new sentence: “Any return information disclosed with respect to section 6402(e) shall only be disclosed to officers and employees of the State agency requesting such information.”; (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter preceding subparagraph (A)— (A) by striking “(5), (10)” and inserting “(5)”; and (B) by striking “(9), or (12)” and inserting “(9), (10), or (12)”; (6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by striking “(relating to aid to families with dependent children)”; (7) in section 6402 (26 U.S.C. 6402)— (A) in subsection (a), by striking “(c) and (d)” and inserting “(c), (d), and (e)”; (B) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and (C) by inserting after subsection (d) the following: “(e) Collection of Overpayments Under Title IV-A of the Social Security Act.— The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).”; and (8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by striking “aid to families with dependent children” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”. (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is amended by striking “State plan approved under part A of title IV” and inserting “State program funded under part A of title IV”. (n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is amended— (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking “(42 U.S.C. 601 et seq.)”; (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking “State aid to families with dependent children records,” and inserting “records collected under the State program funded under part A of title IV of the Social Security Act,”; (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))— (A) by striking “the JOBS program” and inserting “the work activities required under title IV of the Social Security Act”; and (B) by striking the second sentence; (4) in section 123(c) (29 U.S.C. 1533(c))— (A) in paragraph (1)(E), by repealing clause (vi); and (B) in paragraph (2)(D), by repealing clause (v); (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking “, including recipients under the JOBS program”; (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 U.S.C. 1604(a)(1)(A) and (B)), by striking “(such as the JOBS program)” each place it appears; (7) in section 205(a) (29 U.S.C. 1605(a)), by striking paragraph (4) and inserting the following: “(4) the portions of title IV of the Social Security Act relating to work activities;”; (8) in section 253 (29 U.S.C. 1632)— (A) in subsection (b)(2), by repealing subparagraph (C); and (B) in paragraphs (1)(B) and (2)(B) of subsection (c), by striking “the JOBS program or” each place it appears; (9) in section 264 (29 U.S.C. 1644)— (A) in subparagraphs (A) and (B) of subsection (b)(1), by striking “(such as the JOBS program)” each place it appears; and (B) in subparagraphs (A) and (B) of subsection (d)(3), by striking “and the JOBS program” each place it appears; (10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6) and inserting the following: “(6) the portion of title IV of the Social Security Act relating to work activities;”; (11) in the second sentence of section 429(e) (29 U.S.C. 1699(e)), by striking “and shall be in an amount that does not exceed the maximum amount that may be provided by the State pursuant to section 402(g)(1)(C) of the Social Security Act (42 U.S.C. 602(g)(1)(O)”; (12) in section 454(c) (29 U.S.C. 1734(c)), by striking “JOBS and”; (13) in section 455(b) (29 U.S.C. 1735(b)), by striking “the JOBS program,”; (14) in section 501(1) (29 U.S.C. 1791(1)), by striking “aid to families with dependent children under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)” and inserting “assistance under the State program funded under part A of title IV of the Social Security Act”, (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking “aid to families with dependent children” and inserting “assistance under the State program funded”; (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by striking “aid to families with dependent children” and inserting “assistance under the State program funded”; and (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))— (A) in clause (v), by striking the semicolon and inserting “; and”; and (B) by striking clause (vi). (o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is amended to read as follows: “(iv) assistance under a State program funded under part A of title IV of the Social Security Act;”. (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read as follows: “(i) assistance under the State program funded under part A of title IV of the Social Security Act;”, (q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 602 note) is amended— (1) by striking “(A)”; and (2) by striking subparagraphs (B) and (C). (r) The Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended— (1) in the first section 255(h) (2 U.S.C. 905(h)), by striking “Aid to families with dependent children (75–0412–(P1–609);” and inserting “Block grants to States for temporary assistance for needy families;”; and (2) in section 256 (2 U.S.C. 906)— (A) by striking subsection (k); and (B) by redesignating subsection (1) as subsection (k). (s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended— (1) in section 210(f) (8 U.S.C. 1160(f)), by striking “aid under a State plan approved under” each place it appears and inserting “assistance under a State program funded under”; (2) in section 245A(h) (8 U.S.C. 1255a(h))— (A) in paragraph (1)(A)(i), by striking “program of aid to families with dependent children” and inserting “State program of assistance”; and (B) in paragraph (2)(B), by striking “aid to families with dependent children” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”; and (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking “State plan approved” and inserting “State program funded”. (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 9835(a)(4)(B)(i)) is amended by striking “program of aid to families with dependent children under a State plan approved” and inserting “State program of assistance funded”. (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 92; 25 U.S.C. 639) is repealed. (v) Subparagraph (E) of section 213(d)(6) of the School-To-Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as follows: “(E) part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) relating to work activities;”. (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, is amended by striking “section 464 or 1137 of the Social Security Act” and inserting “section 404(e), 464, or 1137 of the Social Security Act”.Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Pub. L. 104–193 § 110 · 110 Stat. 2105
Redesignated · 26 U.S.C. § 6402(g)(j)
Pub. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsecs. (f) to (i) as (g) to (j), respectively, was repealed by Pub. L. 105–33
Source evidence
Code amendment note
Subsecs. (g) to (j). Pub. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsecs. (f) to (i) as (g) to (j), respectively, was repealed by Pub. L. 105–33.Enacted provision · exact public law section
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS. (a) Subsection (b) of section 508 of the Unemployment Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–566; 90 Stat. 2689) is amended to read as follows: “(b) Provision for Reimbursement of Expenses.— For purposes of section 455 of the Social Security Act, expenses incurred to reimburse State employment offices for furnishing information requested of such offices— “(1) pursuant to the third sentence of section 3(a) of the Act entitled ‘An Act to provide for the establishment of a national employment system and for cooperation with the States in the promotion of such system, and for other purposes’, approved June 6, 1933 (29 U.S.C. 49b(a)), or “(2) by a State or local agency charged with the duty of carrying a State plan for child support approved under part D of title IV of the Social Security Act, shall be considered to constitute expenses incurred in the administration of such State plan ”. (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed. (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed. (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC of certain rental payments for federally assisted housing, is repealed. (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 1982 (42 U.S.C. 602 note) is repealed. (f) Section 202(d) of the Social Security Amendments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed. (g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating to demonstration projects to reduce number of AFDC families in welfare hotels, is amended— (1) in subsection (a), by striking “aid to families with dependent children under a State plan approved” and inserting “assistance under a State program funded”, and (2) in subsection (c), by striking “aid to families with dependent children in the State under a State plan approved” and inserting “assistance in the State under a State program funded”. (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended— (1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by striking “(Aid to Families with Dependent Children)”; and (2) in section 480(b)(2) (20 U.S.C. 1087w(b)(2)), by striking “aid to families with dependent children under a State plan approved” and inserting “assistance under a State program funded”. (i) The Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.) is amended— (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), by striking “The program for aid to dependent children” and inserting “Die State program funded”; (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by striking “the program for aid to families with dependent children” and inserting “the State program funded”; and (3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), by striking “the program for aid to families with dependent children” and inserting “the State program funded”. (j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 et seq.) is amended— (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking “Aid to Families with Dependent Children program” and inserting “State program funded under part A of title IV of the Social Security Act”; (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking “the program of aid to families with dependent children under a State plan approved under” and inserting “a State program funded under part A of”; and (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))— (A) in subparagraph (A)(xi), by striking “Aid to Families with Dependent Children benefits” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”; and (B) in subparagraph (B)(viii), by striking “Aid to Families with Dependent Children” and inserting “assistance under the State program funded under part A of title IV of the Social Security Act”. (k) The 4th proviso of chapter VII of title I of Public Law 99–88 (25 U.S.C. 13d–1) is amended to read as follows: “Provided further, That general assistance payments made by the Bureau of Indian Affairs shall be made— “(1) after April 29, 1985, and before October 1, 1995, on the basis of Aid to Families with Dependent Children (AFDC) standards of need; and “(2) on and after October 1, 1995, on the basis of standards of need established under the State program funded under part A of title IV of the Social Security Act, except that where a State ratably reduces its AFDC or State program payments, the Bureau shall reduce general assistance pay-ments in such State by the same percentage as the State has reduced the AFDC or State program payment.”. (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is amended— (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all that follows “agency as” and inserting “being eligible for financial assistance under part A of title IV of the Social Security Act and as having continually received such financial assistance during the 90-day period which immediately precedes the date on which such individual is hired by the employer.”; (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking “eligibility for aid or services,” and all that follows through “children approved” and inserting “eligibility for assistance, or the amount of such assistance, under a State program funded”; (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), by striking “aid to families with dependent children provided under a State plan approved” and inserting “a State program funded”; (4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10),— (A) by striking “(c) or (d)” each place it appears and inserting “(c), (d), or (e)”; and (B) by adding at the end of subparagraph (B) the following new sentence: “Any return information disclosed with respect to section 6402(e) shall only be disclosed to officers and employees of the State agency requesting such information.”; (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter preceding subparagraph (A)— (A) by striking “(5), (10)” and inserting “(5)”; and (B) by striking “(9), or (12)” and inserting “(9), (10), or (12)”; (6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by striking “(relating to aid to families with dependent children)”; (7) in section 6402 (26 U.S.C. 6402)— (A) in subsection (a), by striking “(c) and (d)” and inserting “(c), (d), and (e)”; (B) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and (C) by inserting after subsection (d) the following: “(e) Collection of Overpayments Under Title IV-A of the Social Security Act.— The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).”; and (8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by striking “aid to families with dependent children” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”. (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is amended by striking “State plan approved under part A of title IV” and inserting “State program funded under part A of title IV”. (n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is amended— (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking “(42 U.S.C. 601 et seq.)”; (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking “State aid to families with dependent children records,” and inserting “records collected under the State program funded under part A of title IV of the Social Security Act,”; (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))— (A) by striking “the JOBS program” and inserting “the work activities required under title IV of the Social Security Act”; and (B) by striking the second sentence; (4) in section 123(c) (29 U.S.C. 1533(c))— (A) in paragraph (1)(E), by repealing clause (vi); and (B) in paragraph (2)(D), by repealing clause (v); (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking “, including recipients under the JOBS program”; (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 U.S.C. 1604(a)(1)(A) and (B)), by striking “(such as the JOBS program)” each place it appears; (7) in section 205(a) (29 U.S.C. 1605(a)), by striking paragraph (4) and inserting the following: “(4) the portions of title IV of the Social Security Act relating to work activities;”; (8) in section 253 (29 U.S.C. 1632)— (A) in subsection (b)(2), by repealing subparagraph (C); and (B) in paragraphs (1)(B) and (2)(B) of subsection (c), by striking “the JOBS program or” each place it appears; (9) in section 264 (29 U.S.C. 1644)— (A) in subparagraphs (A) and (B) of subsection (b)(1), by striking “(such as the JOBS program)” each place it appears; and (B) in subparagraphs (A) and (B) of subsection (d)(3), by striking “and the JOBS program” each place it appears; (10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6) and inserting the following: “(6) the portion of title IV of the Social Security Act relating to work activities;”; (11) in the second sentence of section 429(e) (29 U.S.C. 1699(e)), by striking “and shall be in an amount that does not exceed the maximum amount that may be provided by the State pursuant to section 402(g)(1)(C) of the Social Security Act (42 U.S.C. 602(g)(1)(O)”; (12) in section 454(c) (29 U.S.C. 1734(c)), by striking “JOBS and”; (13) in section 455(b) (29 U.S.C. 1735(b)), by striking “the JOBS program,”; (14) in section 501(1) (29 U.S.C. 1791(1)), by striking “aid to families with dependent children under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)” and inserting “assistance under the State program funded under part A of title IV of the Social Security Act”, (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking “aid to families with dependent children” and inserting “assistance under the State program funded”; (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by striking “aid to families with dependent children” and inserting “assistance under the State program funded”; and (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))— (A) in clause (v), by striking the semicolon and inserting “; and”; and (B) by striking clause (vi). (o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is amended to read as follows: “(iv) assistance under a State program funded under part A of title IV of the Social Security Act;”. (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read as follows: “(i) assistance under the State program funded under part A of title IV of the Social Security Act;”, (q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 602 note) is amended— (1) by striking “(A)”; and (2) by striking subparagraphs (B) and (C). (r) The Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended— (1) in the first section 255(h) (2 U.S.C. 905(h)), by striking “Aid to families with dependent children (75–0412–(P1–609);” and inserting “Block grants to States for temporary assistance for needy families;”; and (2) in section 256 (2 U.S.C. 906)— (A) by striking subsection (k); and (B) by redesignating subsection (1) as subsection (k). (s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended— (1) in section 210(f) (8 U.S.C. 1160(f)), by striking “aid under a State plan approved under” each place it appears and inserting “assistance under a State program funded under”; (2) in section 245A(h) (8 U.S.C. 1255a(h))— (A) in paragraph (1)(A)(i), by striking “program of aid to families with dependent children” and inserting “State program of assistance”; and (B) in paragraph (2)(B), by striking “aid to families with dependent children” and inserting “assistance under a State program funded under part A of title IV of the Social Security Act”; and (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking “State plan approved” and inserting “State program funded”. (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 9835(a)(4)(B)(i)) is amended by striking “program of aid to families with dependent children under a State plan approved” and inserting “State program of assistance funded”. (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 92; 25 U.S.C. 639) is repealed. (v) Subparagraph (E) of section 213(d)(6) of the School-To-Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as follows: “(E) part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) relating to work activities;”. (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, is amended by striking “section 464 or 1137 of the Social Security Act” and inserting “section 404(e), 464, or 1137 of the Social Security Act”.Balanced Budget Act of 1997
Pub. L. 105–33 title V § 5514(a)(1) · 111 Stat. 251
Repealed · 26 U.S.C. § 6402(a)(e)(j)
Pub. L. 105–33 repealed Pub. L. 104–193, § 110(l)(7). See 1996 Amendment notes below
Source evidence
Code amendment note
Subsecs. (a), (e) to (j). Pub. L. 105–33 repealed Pub. L. 104–193, § 110(l)(7). See 1996 Amendment notes below.Enacted provision · exact public law section
(1) by striking paragraphs (1), (4), (5), and (7);Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(c)(1) · 112 Stat. 685
Substituted · 26 U.S.C. § 6402(a)
Pub. L. 105–206, § 3711(c)(1), substituted “(c), (d), and (e)” for “(c) and (d)”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 105–206, § 3711(c)(1), substituted “(c), (d), and (e)” for “(c) and (d)”.Enacted provision · exact public law section
(1) Subsection (a) of section 6402 is amended by striking “(c) and (d)” and inserting “(c), (d), and (e)”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(c)(2) · 112 Stat. 685
Substituted · 26 U.S.C. § 6402(d)(2)
Pub. L. 105–206, § 3711(c)(2), substituted “and before such overpayment is reduced pursuant to subsection (e) and before such overpayment” for “and before such overpayment”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 105–206, § 3711(c)(2), substituted “and before such overpayment is reduced pursuant to subsection (e) and before such overpayment” for “and before such overpayment”.Enacted provision · exact public law section
(2) Paragraph (2) of section 6402(d) is amended by striking “and before such overpayment” and inserting “and before such overpayment is reduced pursuant to subsection (e) and before such overpayment”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 6402(e)
Pub. L. 105–206, § 3711(a), added subsec. (e). Former subsec. (e) redesignated (f)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 105–206, § 3711(a), added subsec. (e). Former subsec. (e) redesignated (f).Enacted provision · exact public law section
(a) In General.— Section 6402 (relating to authority to make credits or refunds), as amended by section 3505, is amended by redesignating subsections (e) through (j) as subsections (f) through (k), respectively, and by inserting after subsection (d) the following new subsection: “(e) Collection of Past Due, Legally Enforceable State Income Tax Obligations.— “(1) In general.— Upon receiving notice from any State Notification. that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past due, legally enforceable State income tax obligation. If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return. “(2) Offset permitted only against residents of state seeking offset.— Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(3) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(4) Notice; consideration of evidence.— State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; “(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable; “(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation. “(5) Past due, legally enforceable state income tax obligation.— For purposes of this subsection, the term ‘past-due, legally enforceable State income tax obligation’ means a debt— “(A) (i) which resulted from— “(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or “(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and “(ii) which is no longer subject to judicial review; or “(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term ‘State income tax’ includes any local income tax administered by the chief tax administration agency of the State. “(6) Regulations.— The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 6402(f)
Pub. L. 105–206, § 3711(a), (c)(3), redesignated subsec. (e) as (f)
Redesignated · 26 U.S.C. § 6402(f)
Pub. L. 105–206, § 3711(a), (c)(3), substituted “(c), (d), or (e)” for “(c) or (d)” and “Federal agency or State” for “Federal agency”. Former subsec. (f) redesignated (g)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 105–206, § 3711(a), (c)(3), redesignated subsec. (e) as (f) and substituted “(c), (d), or (e)” for “(c) or (d)” and “Federal agency or State” for “Federal agency”. Former subsec. (f) redesignated (g).Enacted provision · exact public law section
(a) In General.— Section 6402 (relating to authority to make credits or refunds), as amended by section 3505, is amended by redesignating subsections (e) through (j) as subsections (f) through (k), respectively, and by inserting after subsection (d) the following new subsection: “(e) Collection of Past Due, Legally Enforceable State Income Tax Obligations.— “(1) In general.— Upon receiving notice from any State Notification. that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past due, legally enforceable State income tax obligation. If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return. “(2) Offset permitted only against residents of state seeking offset.— Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(3) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(4) Notice; consideration of evidence.— State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; “(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable; “(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation. “(5) Past due, legally enforceable state income tax obligation.— For purposes of this subsection, the term ‘past-due, legally enforceable State income tax obligation’ means a debt— “(A) (i) which resulted from— “(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or “(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and “(ii) which is no longer subject to judicial review; or “(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term ‘State income tax’ includes any local income tax administered by the chief tax administration agency of the State. “(6) Regulations.— The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 6402(g)
Pub. L. 105–206, § 3711(a), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h)
Source evidence
Code amendment note
Subsec. (g). Pub. L. 105–206, § 3711(a), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).Enacted provision · exact public law section
(a) In General.— Section 6402 (relating to authority to make credits or refunds), as amended by section 3505, is amended by redesignating subsections (e) through (j) as subsections (f) through (k), respectively, and by inserting after subsection (d) the following new subsection: “(e) Collection of Past Due, Legally Enforceable State Income Tax Obligations.— “(1) In general.— Upon receiving notice from any State Notification. that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past due, legally enforceable State income tax obligation. If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return. “(2) Offset permitted only against residents of state seeking offset.— Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(3) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(4) Notice; consideration of evidence.— State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; “(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable; “(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation. “(5) Past due, legally enforceable state income tax obligation.— For purposes of this subsection, the term ‘past-due, legally enforceable State income tax obligation’ means a debt— “(A) (i) which resulted from— “(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or “(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and “(ii) which is no longer subject to judicial review; or “(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term ‘State income tax’ includes any local income tax administered by the chief tax administration agency of the State. “(6) Regulations.— The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 6402(h)
Pub. L. 105–206, § 3711(a), (c)(4), redesignated subsec. (g) as (h)
Redesignated · 26 U.S.C. § 6402(h)
Pub. L. 105–206, § 3711(a), (c)(4), substituted “subsection (c) or (e)” for “subsection (c)”. Former subsec. (h) redesignated (i)
Source evidence
Code amendment note
Subsec. (h). Pub. L. 105–206, § 3711(a), (c)(4), redesignated subsec. (g) as (h) and substituted “subsection (c) or (e)” for “subsection (c)”. Former subsec. (h) redesignated (i).Enacted provision · exact public law section
(a) In General.— Section 6402 (relating to authority to make credits or refunds), as amended by section 3505, is amended by redesignating subsections (e) through (j) as subsections (f) through (k), respectively, and by inserting after subsection (d) the following new subsection: “(e) Collection of Past Due, Legally Enforceable State Income Tax Obligations.— “(1) In general.— Upon receiving notice from any State Notification. that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past due, legally enforceable State income tax obligation. If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return. “(2) Offset permitted only against residents of state seeking offset.— Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(3) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(4) Notice; consideration of evidence.— State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; “(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable; “(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation. “(5) Past due, legally enforceable state income tax obligation.— For purposes of this subsection, the term ‘past-due, legally enforceable State income tax obligation’ means a debt— “(A) (i) which resulted from— “(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or “(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and “(ii) which is no longer subject to judicial review; or “(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term ‘State income tax’ includes any local income tax administered by the chief tax administration agency of the State. “(6) Regulations.— The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 6402(i)
Pub. L. 105–206, § 3711(a), redesignated subsec. (h) as (i). Former subsec. (i) redesignated (j)
Source evidence
Code amendment note
Subsec. (i). Pub. L. 105–206, § 3711(a), redesignated subsec. (h) as (i). Former subsec. (i) redesignated (j).Enacted provision · exact public law section
(a) In General.— Section 6402 (relating to authority to make credits or refunds), as amended by section 3505, is amended by redesignating subsections (e) through (j) as subsections (f) through (k), respectively, and by inserting after subsection (d) the following new subsection: “(e) Collection of Past Due, Legally Enforceable State Income Tax Obligations.— “(1) In general.— Upon receiving notice from any State Notification. that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past due, legally enforceable State income tax obligation. If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return. “(2) Offset permitted only against residents of state seeking offset.— Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(3) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(4) Notice; consideration of evidence.— State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; “(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable; “(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation. “(5) Past due, legally enforceable state income tax obligation.— For purposes of this subsection, the term ‘past-due, legally enforceable State income tax obligation’ means a debt— “(A) (i) which resulted from— “(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or “(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and “(ii) which is no longer subject to judicial review; or “(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term ‘State income tax’ includes any local income tax administered by the chief tax administration agency of the State. “(6) Regulations.— The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 6402(j)
Pub. L. 105–206, § 3711(a), redesignated subsec. (i) as (j). Former subsec. (j) redesignated (k)
Source evidence
Code amendment note
Subsec. (j). Pub. L. 105–206, § 3711(a), redesignated subsec. (i) as (j). Former subsec. (j) redesignated (k).Enacted provision · exact public law section
(a) In General.— Section 6402 (relating to authority to make credits or refunds), as amended by section 3505, is amended by redesignating subsections (e) through (j) as subsections (f) through (k), respectively, and by inserting after subsection (d) the following new subsection: “(e) Collection of Past Due, Legally Enforceable State Income Tax Obligations.— “(1) In general.— Upon receiving notice from any State Notification. that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past due, legally enforceable State income tax obligation. If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return. “(2) Offset permitted only against residents of state seeking offset.— Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(3) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(4) Notice; consideration of evidence.— State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; “(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable; “(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation. “(5) Past due, legally enforceable state income tax obligation.— For purposes of this subsection, the term ‘past-due, legally enforceable State income tax obligation’ means a debt— “(A) (i) which resulted from— “(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or “(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and “(ii) which is no longer subject to judicial review; or “(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term ‘State income tax’ includes any local income tax administered by the chief tax administration agency of the State. “(6) Regulations.— The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3505(a) · 112 Stat. 685
Added · 26 U.S.C. § 6402(j)
Pub. L. 105–206, § 3505(a), added subsec. (j)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 105–206, § 3505(a), added subsec. (j).Enacted provision · exact public law section
(a) In General.— Section 6402 (relating to authority to make credits or refunds) is amended by adding at the end the following new subsection: “(j) Explanation of Reason for Refund Disallowance.— In the case of a disallowance of a claim for refund, the Secretary shall provide the taxpayer with an explanation for such disallowance.”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3711(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 6402(k)
Pub. L. 105–206, § 3711(a), redesignated subsec. (j) as (k)
Source evidence
Code amendment note
Subsec. (k). Pub. L. 105–206, § 3711(a), redesignated subsec. (j) as (k).Enacted provision · exact public law section
(a) In General.— Section 6402 (relating to authority to make credits or refunds), as amended by section 3505, is amended by redesignating subsections (e) through (j) as subsections (f) through (k), respectively, and by inserting after subsection (d) the following new subsection: “(e) Collection of Past Due, Legally Enforceable State Income Tax Obligations.— “(1) In general.— Upon receiving notice from any State Notification. that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past due, legally enforceable State income tax obligation. If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return. “(2) Offset permitted only against residents of state seeking offset.— Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(3) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(4) Notice; consideration of evidence.— State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; “(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable; “(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation. “(5) Past due, legally enforceable state income tax obligation.— For purposes of this subsection, the term ‘past-due, legally enforceable State income tax obligation’ means a debt— “(A) (i) which resulted from— “(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or “(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and “(ii) which is no longer subject to judicial review; or “(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term ‘State income tax’ includes any local income tax administered by the chief tax administration agency of the State. “(6) Regulations.— The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).”.Deficit Reduction Act of 2005
Pub. L. 109–171 title VII § 7301(d) · 120 Stat. 4
Substituted · 26 U.S.C. § 6402(c)
Pub. L. 109–171 substituted “of such Act.” for “the Social Security Act.” in third sentence
Substituted · 26 U.S.C. § 6402(c)
Pub. L. 109–171 substituted “The Secretary shall apply a reduction under this subsection first to an amount certified by the State as past due support under section 464 of the Social Security Act before any other reductions allowed by law.” for “A reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.” in third sentence
Source evidence
Code amendment note
Subsec. (c). Pub. L. 109–171 substituted “of such Act.” for “the Social Security Act.” in first sentence and “The Secretary shall apply a reduction under this subsection first to an amount certified by the State as past due support under section 464 of the Social Security Act before any other reductions allowed by law.” for “A reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.” in third sentence.Enacted provision · exact public law section
(d) Conforming Amendments.— Section 6402(c) of the Internal Revenue Code of 1986 26 USC 6402. (relating to offset of past-due support against overpayments) is amended— (1) in the first sentence, by striking “the Social Security Act.” and inserting “of such Act.”; and (2) by striking the third sentence and inserting the following: “The Secretary shall apply a reduction under this subsection first to an amount certified by the State as past due support under section 464 of the Social Security Act before any other reductions allowed by law.”.SSI Extension for Elderly and Disabled Refugees Act
Pub. L. 110–328 § 3(d)(1) · 122 Stat. 3567
Substituted · 26 U.S.C. § 6402(a)
Pub. L. 110–328, § 3(d)(1), substituted “(c), (d), (e), and (f)” for “(c), (d), and (e),”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 110–328, § 3(d)(1), substituted “(c), (d), (e), and (f)” for “(c), (d), and (e),”.Enacted provision · exact public law section
(1) Subsection (a) of section 6402 of such 26 USC 6402. Code is amended by striking “(c), (d), and (e),” and inserting “(c), (d), (e), and (f)”.SSI Extension for Elderly and Disabled Refugees Act
Pub. L. 110–328 § 3(d)(2) · 122 Stat. 3567
Substituted · 26 U.S.C. § 6402(d)(2)
Pub. L. 110–328, § 3(d)(2), substituted “and before such overpayment is reduced pursuant to subsections (e) and (f)” for “and before such overpayment is reduced pursuant to subsection (e)”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 110–328, § 3(d)(2), substituted “and before such overpayment is reduced pursuant to subsections (e) and (f)” for “and before such overpayment is reduced pursuant to subsection (e)”.Enacted provision · exact public law section
(2) Paragraph (2) of section 6402(d) of such Code is amended by striking “and before such overpayment is reduced pursuant to subsection (e)” and inserting “and before such overpayment is reduced pursuant to subsections (e) and (f)”.SSI Extension for Elderly and Disabled Refugees Act
Pub. L. 110–328 § 3(d)(3) · 122 Stat. 3567
Inserted · 26 U.S.C. § 6402(e)(3)
Pub. L. 110–328, § 3(d)(3), inserted “or subsection (f)” after “paragraph (1)” in concluding provisions
Source evidence
Code amendment note
Subsec. (e)(3). Pub. L. 110–328, § 3(d)(3), inserted “or subsection (f)” after “paragraph (1)” in concluding provisions.Enacted provision · exact public law section
(3) Paragraph (3) of section 6402(e) of such Code is amended in the last sentence by inserting “or subsection (f)” after “paragraph (1)”.SSI Extension for Elderly and Disabled Refugees Act
Pub. L. 110–328 § 3(a) · 122 Stat. 3567
Redesignated · 26 U.S.C. § 6402(f)
Pub. L. 110–328, § 3(a), added subsec. (f). Former subsec. (f) redesignated (g)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 110–328, § 3(a), added subsec. (f). Former subsec. (f) redesignated (g).Enacted provision · exact public law section
(a) In General.— Section 6402 26 USC 6402. of the Internal Revenue Code (relating to authority to make credits or refunds) is amended by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and by inserting after subsection (e) the following new subsection: “(f) Collection of Unemployment Compensation Debts Resulting From Fraud.— “(1) In general.— Upon Notification. receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt. If an offset is made pursuant to a joint return, the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset. “(2) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(3) Offset permitted only against residents of state seeking offset.— Paragraph Applicability. (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(4) Notice; consideration of evidence.— No State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section; “(B) Deadline. provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or due to fraud; “(C) considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and due to fraud; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt. “(5) Covered unemployment compensation debt.— For purposes of this subsection, the term ‘covered unemployment compensation debt’ means— “(A) a past-due debt for erroneous payment of unemployment compensation due to fraud which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected for not more than 10 years; “(B) contributions due to the unemployment fund of a State for which the State has determined the person to be liable due to fraud and which remain uncollected for not more than 10 years; and “(C) any penalties and interest assessed on such debt. “(6) Regulations.— “(A) In general.— The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. “(B) Fee payable to secretary.— The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(C) Submission of notices through secretary of labor.— The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State). “(8) Termination.— This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.” .SSI Extension for Elderly and Disabled Refugees Act
Pub. L. 110–328 § 3(a) · 122 Stat. 3567
Redesignated · 26 U.S.C. § 6402(g)
Pub. L. 110–328, § 3(a), (d)(4), redesignated subsec. (f) as (g)
Redesignated · 26 U.S.C. § 6402(g)
Pub. L. 110–328, § 3(a), (d)(4), substituted “(c), (d), (e), or (f)” for “(c), (d), or (e)”. Former subsec. (g) redesignated (h)
Source evidence
Code amendment note
Subsec. (g). Pub. L. 110–328, § 3(a), (d)(4), redesignated subsec. (f) as (g) and substituted “(c), (d), (e), or (f)” for “(c), (d), or (e)”. Former subsec. (g) redesignated (h).Enacted provision · exact public law section
(a) In General.— Section 6402 26 USC 6402. of the Internal Revenue Code (relating to authority to make credits or refunds) is amended by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and by inserting after subsection (e) the following new subsection: “(f) Collection of Unemployment Compensation Debts Resulting From Fraud.— “(1) In general.— Upon Notification. receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt. If an offset is made pursuant to a joint return, the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset. “(2) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(3) Offset permitted only against residents of state seeking offset.— Paragraph Applicability. (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(4) Notice; consideration of evidence.— No State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section; “(B) Deadline. provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or due to fraud; “(C) considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and due to fraud; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt. “(5) Covered unemployment compensation debt.— For purposes of this subsection, the term ‘covered unemployment compensation debt’ means— “(A) a past-due debt for erroneous payment of unemployment compensation due to fraud which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected for not more than 10 years; “(B) contributions due to the unemployment fund of a State for which the State has determined the person to be liable due to fraud and which remain uncollected for not more than 10 years; and “(C) any penalties and interest assessed on such debt. “(6) Regulations.— “(A) In general.— The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. “(B) Fee payable to secretary.— The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(C) Submission of notices through secretary of labor.— The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State). “(8) Termination.— This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.” .SSI Extension for Elderly and Disabled Refugees Act
Pub. L. 110–328 § 3(a) · 122 Stat. 3567
Redesignated · 26 U.S.C. § 6402(h)
Pub. L. 110–328, § 3(a), redesignated subsec. (g) as (h). Former subsec. (h) redesignated (i)
Source evidence
Code amendment note
Subsec. (h). Pub. L. 110–328, § 3(a), redesignated subsec. (g) as (h). Former subsec. (h) redesignated (i).Enacted provision · exact public law section
(a) In General.— Section 6402 26 USC 6402. of the Internal Revenue Code (relating to authority to make credits or refunds) is amended by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and by inserting after subsection (e) the following new subsection: “(f) Collection of Unemployment Compensation Debts Resulting From Fraud.— “(1) In general.— Upon Notification. receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt. If an offset is made pursuant to a joint return, the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset. “(2) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(3) Offset permitted only against residents of state seeking offset.— Paragraph Applicability. (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(4) Notice; consideration of evidence.— No State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section; “(B) Deadline. provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or due to fraud; “(C) considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and due to fraud; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt. “(5) Covered unemployment compensation debt.— For purposes of this subsection, the term ‘covered unemployment compensation debt’ means— “(A) a past-due debt for erroneous payment of unemployment compensation due to fraud which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected for not more than 10 years; “(B) contributions due to the unemployment fund of a State for which the State has determined the person to be liable due to fraud and which remain uncollected for not more than 10 years; and “(C) any penalties and interest assessed on such debt. “(6) Regulations.— “(A) In general.— The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. “(B) Fee payable to secretary.— The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(C) Submission of notices through secretary of labor.— The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State). “(8) Termination.— This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.” .SSI Extension for Elderly and Disabled Refugees Act
Pub. L. 110–328 § 3(a) · 122 Stat. 3567
Redesignated · 26 U.S.C. § 6402(i)
Pub. L. 110–328, § 3(a), (d)(5), redesignated subsec. (h) as (i)
Redesignated · 26 U.S.C. § 6402(i)
Pub. L. 110–328, § 3(a), (d)(5), substituted “subsection (c), (e), or (f)” for “subsection (c) or (e)”. Former subsec. (i) redesignated (j)
Source evidence
Code amendment note
Subsec. (i). Pub. L. 110–328, § 3(a), (d)(5), redesignated subsec. (h) as (i) and substituted “subsection (c), (e), or (f)” for “subsection (c) or (e)”. Former subsec. (i) redesignated (j).Enacted provision · exact public law section
(a) In General.— Section 6402 26 USC 6402. of the Internal Revenue Code (relating to authority to make credits or refunds) is amended by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and by inserting after subsection (e) the following new subsection: “(f) Collection of Unemployment Compensation Debts Resulting From Fraud.— “(1) In general.— Upon Notification. receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt. If an offset is made pursuant to a joint return, the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset. “(2) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(3) Offset permitted only against residents of state seeking offset.— Paragraph Applicability. (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(4) Notice; consideration of evidence.— No State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section; “(B) Deadline. provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or due to fraud; “(C) considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and due to fraud; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt. “(5) Covered unemployment compensation debt.— For purposes of this subsection, the term ‘covered unemployment compensation debt’ means— “(A) a past-due debt for erroneous payment of unemployment compensation due to fraud which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected for not more than 10 years; “(B) contributions due to the unemployment fund of a State for which the State has determined the person to be liable due to fraud and which remain uncollected for not more than 10 years; and “(C) any penalties and interest assessed on such debt. “(6) Regulations.— “(A) In general.— The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. “(B) Fee payable to secretary.— The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(C) Submission of notices through secretary of labor.— The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State). “(8) Termination.— This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.” .SSI Extension for Elderly and Disabled Refugees Act
Pub. L. 110–328 § 3(a) · 122 Stat. 3567
Redesignated · 26 U.S.C. § 6402(j)(l)
Pub. L. 110–328, § 3(a), redesignated subsecs. (i) to (k) as (j) to (l), respectively
Source evidence
Code amendment note
Subsecs. (j) to (l). Pub. L. 110–328, § 3(a), redesignated subsecs. (i) to (k) as (j) to (l), respectively.Enacted provision · exact public law section
(a) In General.— Section 6402 26 USC 6402. of the Internal Revenue Code (relating to authority to make credits or refunds) is amended by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and by inserting after subsection (e) the following new subsection: “(f) Collection of Unemployment Compensation Debts Resulting From Fraud.— “(1) In general.— Upon Notification. receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary— “(A) reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt; “(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and “(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt. If an offset is made pursuant to a joint return, the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset. “(2) Priorities for offset.— Any overpayment by a person shall be reduced pursuant to this subsection— “(A) after such overpayment is reduced pursuant to— “(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment; “(ii) subsection (c) with respect to past-due support; and “(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and “(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b). If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued. “(3) Offset permitted only against residents of state seeking offset.— Paragraph Applicability. (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. “(4) Notice; consideration of evidence.— No State may take action under this subsection until such State— “(A) notifies by certified mail with return receipt the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section; “(B) Deadline. provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or due to fraud; “(C) considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and due to fraud; and “(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt. “(5) Covered unemployment compensation debt.— For purposes of this subsection, the term ‘covered unemployment compensation debt’ means— “(A) a past-due debt for erroneous payment of unemployment compensation due to fraud which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected for not more than 10 years; “(B) contributions due to the unemployment fund of a State for which the State has determined the person to be liable due to fraud and which remain uncollected for not more than 10 years; and “(C) any penalties and interest assessed on such debt. “(6) Regulations.— “(A) In general.— The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. “(B) Fee payable to secretary.— The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. “(C) Submission of notices through secretary of labor.— The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection. “(7) Erroneous payment to state.— Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State). “(8) Termination.— This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.” .Claims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(1) · 124 Stat. 3064
Struck · 26 U.S.C. § 6402(f)
Pub. L. 111–291, § 801(a)(1), struck out “resulting from fraud” after “debts” in heading
Source evidence
Code amendment note
Subsec. (f). Pub. L. 111–291, § 801(a)(1), struck out “resulting from fraud” after “debts” in heading.Enacted provision · exact public law section
(1) in the heading, by striking “Resulting From Fraud”;Claims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(2) · 124 Stat. 3064
Redesignated · 26 U.S.C. § 6402(f)(3)
Pub. L. 111–291, § 801(a)(2), redesignated par. (4) as (3)
Struck · 26 U.S.C. § 6402(f)(3)
Pub. L. 111–291, § 801(a)(2), struck out former par. (3). Prior to amendment, text of par. (3) read as follows: “Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.”
Source evidence
Code amendment note
Subsec. (f)(3). Pub. L. 111–291, § 801(a)(2), redesignated par. (4) as (3) and struck out former par. (3). Prior to amendment, text of par. (3) read as follows: “Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.”Enacted provision · exact public law section
(2) by striking paragraphs (3) and (8) and redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively;Claims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(3)(A) · 124 Stat. 3064
Struck · 26 U.S.C. § 6402(f)(3)(A)
Pub. L. 111–291, § 801(a)(3)(A), struck out “by certified mail with return receipt” after “notifies”
Source evidence
Code amendment note
Subsec. (f)(3)(A). Pub. L. 111–291, § 801(a)(3)(A), struck out “by certified mail with return receipt” after “notifies”.Enacted provision · exact public law section
(A) in subparagraph (A), by striking “by certified mail with return receipt”;Claims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(3)(B) · 124 Stat. 3064
Substituted · 26 U.S.C. § 6402(f)(3)(B)
Pub. L. 111–291, § 801(a)(3)(B), substituted “is not a covered unemployment compensation debt” for “due to fraud”
Source evidence
Code amendment note
Subsec. (f)(3)(B). Pub. L. 111–291, § 801(a)(3)(B), substituted “is not a covered unemployment compensation debt” for “due to fraud”.Enacted provision · exact public law section
(B) in subparagraph (B), by striking “due to fraud” and inserting “is not a covered unemployment compensation debt”;Claims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(3)(C) · 124 Stat. 3064
Substituted · 26 U.S.C. § 6402(f)(3)(C)
Pub. L. 111–291, § 801(a)(3)(C), substituted “is not a covered unemployment compensation debt” for “due to fraud”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 111–291, § 801(a)(3)(C), substituted “is not a covered unemployment compensation debt” for “due to fraud”.Enacted provision · exact public law section
(C) in subparagraph (C), by striking “due to fraud” and inserting “ is not a covered unemployment compensation debt”; andClaims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(2) · 124 Stat. 3064
Redesignated · 26 U.S.C. § 6402(f)(4)
Pub. L. 111–291, § 801(a)(2), redesignated par. (5) as (4). Former par. (4) redesignated (3)
Source evidence
Code amendment note
Subsec. (f)(4). Pub. L. 111–291, § 801(a)(2), redesignated par. (5) as (4). Former par. (4) redesignated (3).Enacted provision · exact public law section
(2) by striking paragraphs (3) and (8) and redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively;Claims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(4)(A) · 124 Stat. 3064
Inserted · 26 U.S.C. § 6402(f)(4)(A)
Pub. L. 111–291, § 801(a)(4)(A), inserted “or the person’s failure to report earnings” after “due to fraud”
Struck · 26 U.S.C. § 6402(f)(4)(A)
Pub. L. 111–291, § 801(a)(4)(A), struck out “for not more than 10 years” after “remains uncollected”
Source evidence
Code amendment note
Subsec. (f)(4)(A). Pub. L. 111–291, § 801(a)(4)(A), inserted “or the person’s failure to report earnings” after “due to fraud” and struck out “for not more than 10 years” after “remains uncollected”.Enacted provision · exact public law section
(A) in subparagraph (A)— (i) by inserting “or the person’s failure to report earnings” after “due to fraud”; and (ii) by striking “for not more than 10 years”; andClaims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(4)(B) · 124 Stat. 3064
Struck · 26 U.S.C. § 6402(f)(4)(B)
Pub. L. 111–291, § 801(a)(4)(B), struck out “due to fraud” after “to be liable” and “for not more than 10 years” after “remain uncollected”
Source evidence
Code amendment note
Subsec. (f)(4)(B). Pub. L. 111–291, § 801(a)(4)(B), struck out “due to fraud” after “to be liable” and “for not more than 10 years” after “remain uncollected”.Enacted provision · exact public law section
(B) in subparagraph (B)— (i) by striking “due to fraud”; and (ii) by striking “for not more than 10 years”.Claims Resolution Act of 2010
Pub. L. 111–291 § 801(a)(2) · 124 Stat. 3064
Redesignated · 26 U.S.C. § 6402(f)(5)(8)
Pub. L. 111–291, § 801(a)(2), redesignated pars. (5) to (7) as (4) to (6), respectively
Struck · 26 U.S.C. § 6402(f)(5)(8)
Pub. L. 111–291, § 801(a)(2), struck out par. (8). Prior to amendment, text of par. (8) read as follows: “This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.”
Source evidence
Code amendment note
Subsec. (f)(5) to (8). Pub. L. 111–291, § 801(a)(2), redesignated pars. (5) to (7) as (4) to (6), respectively, and struck out par. (8). Prior to amendment, text of par. (8) read as follows: “This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.”Enacted provision · exact public law section
(2) by striking paragraphs (3) and (8) and redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively;Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
Pub. L. 111–312 title V § 503(a) · 124 Stat. 3296
Substituted · 26 U.S.C. § 6402(f)(3)(C)
Pub. L. 111–312 substituted “is a covered unemployment compensation debt” for “is not a covered unemployment compensation debt”
Source evidence
Code amendment note
Subsec. (f)(3)(C). Pub. L. 111–312 substituted “is a covered unemployment compensation debt” for “is not a covered unemployment compensation debt”.Enacted provision · exact public law section
(a) In General.— Section 6402(f)(3)(C), as amended by section 801 of the Claims Resolution Act of 2010, 26 USC 6402. is amended by striking “is not a covered unemployment compensation debt” and inserting “is a covered unemployment compensation debt”.Department of Justice Appropriations Act, 2016
Pub. L. 114–113 div. Q title II § 201(b) · 129 Stat. 2242
Added · 26 U.S.C. § 6402(m)
Pub. L. 114–113 added subsec. (m)
Source evidence
Code amendment note
Subsec. (m). Pub. L. 114–113 added subsec. (m).Enacted provision · exact public law section
Sec. 201. In addition to amounts otherwise made available in this title for official reception and representation expenses, a total of not to exceed $50,000 from funds appropriated to the Department of Justice in this title shall be available to the Attorney General for official reception and representation expenses.Effective date note
Amendment by Pub. L. 114–113 applicable to credits or refunds made after Dec. 31, 2016, see section 201(d) of Pub. L. 114–113, set out as a note under section 6071 of this title.Energy and Water Development and Related Agencies Appropriations Act, 2018
Pub. L. 115–141 § 401(a)(285) · 132 Stat. 348
Substituted · 26 U.S.C. § 6402(a)
Pub. L. 115–141, § 401(a)(285), substituted “(f), refund” for “(f) refund”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 115–141, § 401(a)(285), substituted “(f), refund” for “(f) refund”.Enacted provision · exact public law section
Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.Energy and Water Development and Related Agencies Appropriations Act, 2018
Pub. L. 115–141 § 401(a)(286) · 132 Stat. 348
Substituted · 26 U.S.C. § 6402(c)
Pub. L. 115–141, § 401(a)(286), substituted “of such Act” for “of of such Act”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 115–141, § 401(a)(286), substituted “of such Act” for “of of such Act”.Enacted provision · exact public law section
Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.Energy and Water Development and Related Agencies Appropriations Act, 2018
Pub. L. 115–141 § 401(a)(287) · 132 Stat. 348
Substituted · 26 U.S.C. § 6402(d)(2)
Pub. L. 115–141, § 401(a)(287), substituted “section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(3))” for “section 402(a)(26) of the Social Security Act”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 115–141, § 401(a)(287), substituted “section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(3))” for “section 402(a)(26) of the Social Security Act”.Enacted provision · exact public law section
Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.Taxpayer First Act
Pub. L. 116–25 title I § 1407 · 133 Stat. 981
Added · 26 U.S.C. § 6402(n)
Pub. L. 116–25 added subsec. (n)
Source evidence
Code amendment note
Subsec. (n). Pub. L. 116–25 added subsec. (n).Enacted provision · exact public law section
SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS. Section 6402 26 USC 6402. is amended by adding at the end the following new subsection: “(n) Misdirected Direct Deposit Refund.— Not later than the date which is 6 months after the date of the enactment of the Taxpayer First Act, the Secretary shall prescribe regulations to establish procedures to allow for— “(1) taxpayers to report instances in which a refund made by the Secretary by electronic funds transfer was not transferred to the account of the taxpayer; “(2) coordination with financial institutions for the purpose of— “(A) identifying the accounts to which transfers described in paragraph (1) were made; and “(B) recovery of the amounts so transferred; and “(3) the refund to be delivered to the correct account of the taxpayer.” .Pub. L. 118–258 title II § 202(a)(2)(F) · 138 Stat. 2972
Inserted · 26 U.S.C. § 6402(c)
Pub. L. 118–258 inserted at end “For purposes of this subsection, any reference to a State shall include a reference to any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act.”
Unresolved: Pub. L. 118–258 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (c). Pub. L. 118–258 inserted at end “For purposes of this subsection, any reference to a State shall include a reference to any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act.”
64 of 66 references resolved to an enrolled provision · 1 partial · 1 unresolved
Editorial Notes
References in Text
The Social Security Act, referred to in subsecs. (c), (d)(3)(D), and (g), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of the Act is classified generally to subchapter II (§ 401 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. Sections 204, 455, and 464 of the Act are classified to sections 404, 655, and 664, respectively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
The date of the enactment of the Taxpayer First Act, referred to in subsec. (n), is the date of enactment of Pub. L. 116–25, which was approved .
Amendments1976–2025 · 16 rounds
2025
Subsec. (c). Pub. L. 118–258 inserted at end “For purposes of this subsection, any reference to a State shall include a reference to any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act.”
2019
Subsec. (n). Pub. L. 116–25 added subsec. (n).
2018
Subsec. (a). Pub. L. 115–141, § 401(a)(285), substituted “(f), refund” for “(f) refund”.
Subsec. (c). Pub. L. 115–141, § 401(a)(286), substituted “of such Act” for “of of such Act”.
Subsec. (d)(2). Pub. L. 115–141, § 401(a)(287), substituted “section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(3))” for “section 402(a)(26) of the Social Security Act”.
2015
Subsec. (m). Pub. L. 114–113 added subsec. (m).
2010
Subsec. (f). Pub. L. 111–291, § 801(a)(1), struck out “resulting from fraud” after “debts” in heading.
Subsec. (f)(3). Pub. L. 111–291, § 801(a)(2), redesignated par. (4) as (3) and struck out former par. (3). Prior to amendment, text of par. (3) read as follows: “Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.”
Subsec. (f)(3)(A). Pub. L. 111–291, § 801(a)(3)(A), struck out “by certified mail with return receipt” after “notifies”.
Subsec. (f)(3)(B). Pub. L. 111–291, § 801(a)(3)(B), substituted “is not a covered unemployment compensation debt” for “due to fraud”.
Subsec. (f)(3)(C). Pub. L. 111–312 substituted “is a covered unemployment compensation debt” for “is not a covered unemployment compensation debt”.
Pub. L. 111–291, § 801(a)(3)(C), substituted “is not a covered unemployment compensation debt” for “due to fraud”.
Subsec. (f)(4). Pub. L. 111–291, § 801(a)(2), redesignated par. (5) as (4). Former par. (4) redesignated (3).
Subsec. (f)(4)(A). Pub. L. 111–291, § 801(a)(4)(A), inserted “or the person’s failure to report earnings” after “due to fraud” and struck out “for not more than 10 years” after “remains uncollected”.
Subsec. (f)(4)(B). Pub. L. 111–291, § 801(a)(4)(B), struck out “due to fraud” after “to be liable” and “for not more than 10 years” after “remain uncollected”.
Subsec. (f)(5) to (8). Pub. L. 111–291, § 801(a)(2), redesignated pars. (5) to (7) as (4) to (6), respectively, and struck out par. (8). Prior to amendment, text of par. (8) read as follows: “This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.”
2008
Subsec. (a). Pub. L. 110–328, § 3(d)(1), substituted “(c), (d), (e), and (f)” for “(c), (d), and (e),”.
Subsec. (d)(2). Pub. L. 110–328, § 3(d)(2), substituted “and before such overpayment is reduced pursuant to subsections (e) and (f)” for “and before such overpayment is reduced pursuant to subsection (e)”.
Subsec. (e)(3). Pub. L. 110–328, § 3(d)(3), inserted “or subsection (f)” after “paragraph (1)” in concluding provisions.
Subsec. (f). Pub. L. 110–328, § 3(a), added subsec. (f). Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 110–328, § 3(a), (d)(4), redesignated subsec. (f) as (g) and substituted “(c), (d), (e), or (f)” for “(c), (d), or (e)”. Former subsec. (g) redesignated (h).
Subsec. (h). Pub. L. 110–328, § 3(a), redesignated subsec. (g) as (h). Former subsec. (h) redesignated (i).
Subsec. (i). Pub. L. 110–328, § 3(a), (d)(5), redesignated subsec. (h) as (i) and substituted “subsection (c), (e), or (f)” for “subsection (c) or (e)”. Former subsec. (i) redesignated (j).
Subsecs. (j) to (l). Pub. L. 110–328, § 3(a), redesignated subsecs. (i) to (k) as (j) to (l), respectively.
2006
Subsec. (c). Pub. L. 109–171 substituted “of such Act.” for “the Social Security Act.” in first sentence and “The Secretary shall apply a reduction under this subsection first to an amount certified by the State as past due support under section 464 of the Social Security Act before any other reductions allowed by law.” for “A reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.” in third sentence.
1998
Subsec. (a). Pub. L. 105–206, § 3711(c)(1), substituted “(c), (d), and (e)” for “(c) and (d)”.
Subsec. (d)(2). Pub. L. 105–206, § 3711(c)(2), substituted “and before such overpayment is reduced pursuant to subsection (e) and before such overpayment” for “and before such overpayment”.
Subsec. (e). Pub. L. 105–206, § 3711(a), added subsec. (e). Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 105–206, § 3711(a), (c)(3), redesignated subsec. (e) as (f) and substituted “(c), (d), or (e)” for “(c) or (d)” and “Federal agency or State” for “Federal agency”. Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 105–206, § 3711(a), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).
Subsec. (h). Pub. L. 105–206, § 3711(a), (c)(4), redesignated subsec. (g) as (h) and substituted “subsection (c) or (e)” for “subsection (c)”. Former subsec. (h) redesignated (i).
Subsec. (i). Pub. L. 105–206, § 3711(a), redesignated subsec. (h) as (i). Former subsec. (i) redesignated (j).
Subsec. (j). Pub. L. 105–206, § 3711(a), redesignated subsec. (i) as (j). Former subsec. (j) redesignated (k).
Pub. L. 105–206, § 3505(a), added subsec. (j).
Subsec. (k). Pub. L. 105–206, § 3711(a), redesignated subsec. (j) as (k).
1997
Subsecs. (a), (e) to (j). Pub. L. 105–33 repealed Pub. L. 104–193, § 110(l)(7). See 1996 Amendment notes below.
1996
Subsec. (a). Pub. L. 104–193, § 110(l)(7)(A), which directed substitution of “(c), (d), and (e)” for “(c) and (d)”, was repealed by Pub. L. 105–33.
Subsec. (e). Pub. L. 104–193, § 110(l)(7)(C), which directed amendment by adding subsec. (e), reading as follows: “Collection of Overpayments Under Title IV–A of the Social Security Act.—The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).”, was repealed by Pub. L. 105–33.
Subsec. (f). Pub. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsec. (e) as (f), was repealed by Pub. L. 105–33.
Pub. L. 104–134 amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “For purposes of this section, the term ‘Federal agency’ means a department, agency, or instrumentality of the United States (other than an agency subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).”
Subsecs. (g) to (j). Pub. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsecs. (f) to (i) as (g) to (j), respectively, was repealed by Pub. L. 105–33.
1994
Subsecs. (d)(3)(C), (e). Pub. L. 103–296 substituted “Commissioner of Social Security” for “Secretary of Health and Human Services” wherever appearing.
1990
Subsec. (d)(1). Pub. L. 101–508, § 5129(c)(1)(A), struck out “any OASDI overpayment and” after “(other than”.
Subsec. (d)(3). Pub. L. 101–508, § 5129(c)(1)(B), added par. (3) and struck out former par. (3) which read as follows: “For purposes of this subsection the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act.”
Subsec. (e). Pub. L. 101–508, § 5129(c)(2), inserted before period at end “or any such action against the Secretary of Health and Human Services which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act”.
1988
Subsec. (i). Pub. L. 100–647 added subsec. (i).
1984
Subsec. (a). Pub. L. 98–369, § 2653(b)(2), substituted “subsections (c) and (d)” for “subsection (c)”.
Subsec. (c). Pub. L. 98–378, § 21(e)(1), substituted “collecting such support” for “to which such support has been assigned” and inserted provision that a reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.
Subsecs. (d) to (f). Pub. L. 98–369, § 2653(b)(1), added subsecs. (d) to (f).
Subsec. (g). Pub. L. 98–378, § 21(e)(2), added subsec. (g). Former subsec. (g) redesignated (h).
Pub. L. 98–369, § 2653(b)(1), added subsec. (g).
Subsec. (h). Pub. L. 98–378, § 21(e)(2), redesignated former subsec. (g) as (h).
1981
Subsec. (a). Pub. L. 97–35, § 2331(c)(1), inserted reference to subsec. (c) of this section.
Subsec. (c). Pub. L. 97–35, § 2331(c)(2), added subsec. (c).
1976
Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by Pub. L. 114–113 applicable to credits or refunds made after , see section 201(d) of Pub. L. 114–113, set out as a note under section 6071 of this title.
Effective Date of 2010 Amendment
Pub. L. 111–312, title V, § 503(b), , 124 Stat. 3308, provided that: “The amendment made by subsection (a) [amending this section] shall take effect as if included in section 801 of the Claims Resolution Act of 2010 [Pub. L. 111–291].”
Pub. L. 111–291, title VIII, § 801(b), , 124 Stat. 3157, provided that: “The amendments made by this section [amending this section] shall apply to refunds payable under section 6402 of the Internal Revenue Code of 1986 on or after the date of the enactment of this Act [].”
Effective Date of 2008 Amendment
Amendment by Pub. L. 110–328 applicable to refunds payable under section 6402 of this title on or after , see section 3(e) of Pub. L. 110–328, set out as a note under section 3304 of this title.
Effective Date of 2006 Amendment
Amendment by Pub. L. 109–171 effective , and applicable to payments under parts A and D of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare, for calendar quarters beginning on or after such date, subject to certain State options, see section 7301(e) of Pub. L. 109–171, set out as a note under section 608 of Title 42.
Effective Date of 1998 Amendment
Pub. L. 105–206, title III, § 3505(b), , 112 Stat. 771, provided that: “The amendment made by this section [amending this section] shall apply to disallowances after the 180th day after the date of the enactment of this Act [].”
Amendment by section 3711 of Pub. L. 105–206 applicable to refunds payable under this section after , see section 3711(d) of Pub. L. 105–206, set out as a note under section 6103 of this title.
Effective Date of 1997 Amendment
Amendment by Pub. L. 105–33 effective as if included in section 110 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. 104–193, at the time such section 110 became law, see section 5518(c) of Pub. L. 105–33, set out as a note under section 51 of this title.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–193 effective , with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Pub. L. 104–193, as amended, set out as an Effective Date note under section 601 of Title 42, The Public Health and Welfare.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–296 effective , see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of Title 42, The Public Health and Welfare.
Effective Date of 1990 Amendment
Pub. L. 101–508, title V, § 5129(d), , 104 Stat. 1388–289, provided that:
“The amendments made by this section [amending this section, section 3720A of Title 31, Money and Finance, and section 404 of Title 42, The Public Health and Welfare]—
“(1) shall take effect , and
“(2) shall not apply to refunds to which the amendments made by section 2653 of the Deficit Reduction Act of 1984 (98 Stat. 1153) [enacting section 3720A of Title 31 and amending this section and sections 6103 and 7213 of this title] do not apply.”
Effective Date of 1984 Amendments
Amendment by Pub. L. 98–378 applicable with respect to refunds payable under this section after , see section 21(g) of Pub. L. 98–378, set out as a note under section 6103 of this title.
Pub. L. 98–369, div. B, title VI, § 2653(c), , 98 Stat. 1156, as amended by Pub. L. 99–514, § 2, , 100 Stat. 2095; Pub. L. 100–203, title IX, § 9402(a), , 101 Stat. 1330–376; Pub. L. 100–485, title VII, § 701(a), , 102 Stat. 2425; Pub. L. 102–164, title IV, § 401(a), , 105 Stat. 1061, provided that: “The amendments made by this section [enacting section 3720A of Title 31, Money and Finance, and amending this section and sections 6103 and 7213 of this title] shall apply with respect to refunds payable under section 6402 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] after .”
[Pub. L. 102–164, title IV, § 401(b), , 105 Stat. 1061, provided that: “The amendment made by this section [amending section 2653(c) of Pub. L. 98–369, set out above] shall take effect on .”
]
Effective Date of 1981 Amendment
Amendment by Pub. L. 97–35 effective, except as otherwise specifically provided, on , see section 2336 of Pub. L. 97–35, set out as a note under section 651 of Title 42, The Public Health and Welfare.
Organ and Tissue Donation Information Included With Income Tax Refund Payments
Pub. L. 104–191, title III, § 371, , 110 Stat. 2072, provided that:
“(a) In General.—
The Secretary of the Treasury shall, to the extent practicable, include with the mailing of any payment of a refund of individual income tax made during the period beginning on , and ending on , a copy of the document described in subsection (b).
“(b) Text of Document.—
The Secretary of the Treasury shall, after consultation with the Secretary of Health and Human Services and organizations promoting organ and tissue (including eye) donation, prepare a document suitable for inclusion with individual income tax refund payments which—
“(1) encourages organ and tissue donation;
“(2) includes a detachable organ and tissue donor card; and
“(3) urges recipients to—
“(A) sign the organ and tissue donor card;
“(B) discuss organ and tissue donation with family members and tell family members about the recipient’s desire to be an organ and tissue donor if the occasion arises; and
“(C) encourage family members to request or authorize organ and tissue donation if the occasion arises.”
Clarification of Congressional Intent as to Scope of Amendments by Section 2653 of Pub. L. 98–369
Pub. L. 100–203, title IX, § 9402(b), , 101 Stat. 1330–376, provided that:
“(1) Nothing in the amendments made by section 2653 of the Deficit Reduction Act of 1984 [enacting section 3720A of Title 31, Money and Finance, and amending this section and sections 6103 and 7213 of this title] shall be construed as exempting debts of corporations or any other category of persons from the application of such amendments.
“(2) It is the intent of the Congress that, to the extent practicable, the amendments made by section 2653 of the Deficit Reduction Act of 1984 shall extend to all Federal agencies (as defined in the amendments made by such section).
“(3) The Secretary of the Treasury shall issue regulations to carry out the purposes of this subsection.”
Study by General Accounting Office of Operation and Effectiveness of Amendments by Section 2653 of Pub. L. 98–369
Pub. L. 100–203, title IX, § 9402(c), , 101 Stat. 1330–376, required the Comptroller General of the United States, in consultation with the Secretary of the Treasury, to conduct a study of the operation and effectiveness of amendments by section 2653 of Pub. L. 98–369 on voluntary compliance with the income tax laws and, by , submit a report and recommendations to Congress.
Credits
1954–2025 · 20 acts
- 1954Aug. 6, 1954, ch. 736, 68A Stat. 791
- 1976Pub. L. 94–455, title XIX, § 1906(b)(13) (A), (K), , 90 Stat. 1834, 1835
- 1981Pub. L. 97–35, title XXIII, § 2331(c), , 95 Stat. 861
- 1984Pub. L. 98–369, div. B, title VI, § 2653(b)(1), (2), , 98 Stat. 1154, 1155
- 1984Pub. L. 98–378, § 21(e), , 98 Stat. 1325
- 1988Pub. L. 100–647, title VI, § 6276, , 102 Stat. 3753
- 1990Pub. L. 101–508, title V, § 5129(c), , 104 Stat. 1388–288
- 1994Pub. L. 103–296, title I, § 108(h)(7), , 108 Stat. 1487
- 1996Pub. L. 104–134, title III, § 31001(u)(2), , 110 Stat. 1321–375
- 1996Pub. L. 104–193, title I, § 110(l)(7), , 110 Stat. 2173
- 1997Pub. L. 105–33, title V, § 5514(a)(1), , 111 Stat. 620
- 1998Pub. L. 105–206, title III, §§ 3505(a), 3711(a), (c), , 112 Stat. 771, 779, 781
- 2006Pub. L. 109–171, title VII, § 7301(d), , 120 Stat. 144
- 2008Pub. L. 110–328, § 3(a), (d), , 122 Stat. 3570, 3573
- 2010Pub. L. 111–291, title VIII, § 801(a), , 124 Stat. 3157
- 2010Pub. L. 111–312, title V, § 503(a), , 124 Stat. 3308
- 2015Pub. L. 114–113, div. Q, title II, § 201(b), , 129 Stat. 3076
- 2018Pub. L. 115–141, div. U, title IV, § 401(a)(285)–(287), , 132 Stat. 1198
- 2019Pub. L. 116–25, title I, § 1407, , 133 Stat. 1001
- 2025Pub. L. 118–258, title II, § 202(a)(2)(F), , 138 Stat. 2972.
Show as published
(Aug. 6, 1954, ch. 736, 68A Stat. 791; Pub. L. 94–455, title XIX, § 1906(b)(13) (A), (K), , 90 Stat. 1834, 1835; Pub. L. 97–35, title XXIII, § 2331(c), , 95 Stat. 861; Pub. L. 98–369, div. B, title VI, § 2653(b)(1), (2), , 98 Stat. 1154, 1155; Pub. L. 98–378, § 21(e), , 98 Stat. 1325; Pub. L. 100–647, title VI, § 6276, , 102 Stat. 3753; Pub. L. 101–508, title V, § 5129(c), , 104 Stat. 1388–288; Pub. L. 103–296, title I, § 108(h)(7), , 108 Stat. 1487; Pub. L. 104–134, title III, § 31001(u)(2), , 110 Stat. 1321–375; Pub. L. 104–193, title I, § 110(l)(7), , 110 Stat. 2173; Pub. L. 105–33, title V, § 5514(a)(1), , 111 Stat. 620; Pub. L. 105–206, title III, §§ 3505(a), 3711(a), (c), , 112 Stat. 771, 779, 781; Pub. L. 109–171, title VII, § 7301(d), , 120 Stat. 144; Pub. L. 110–328, § 3(a), (d), , 122 Stat. 3570, 3573; Pub. L. 111–291, title VIII, § 801(a), , 124 Stat. 3157; Pub. L. 111–312, title V, § 503(a), , 124 Stat. 3308; Pub. L. 114–113, div. Q, title II, § 201(b), , 129 Stat. 3076; Pub. L. 115–141, div. U, title IV, § 401(a)(285)–(287), , 132 Stat. 1198; Pub. L. 116–25, title I, § 1407, , 133 Stat. 1001; Pub. L. 118–258, title II, § 202(a)(2)(F), , 138 Stat. 2972.)