(a) The agency head (or designee) of the creditor Labor Department
agency shall send appropriate written demands to the debtor in terms
which inform the debtor of the consequences of failure to repay claims.
In accordance with guidelines as may be established by the Department's
Chief Financial Officer, a total of three progressively stronger written
demands at not more than 30-day intervals will normally be made unless a
response to the first or second demand indicates that a further demand
would be futile and the debtor's response does not require rebuttal. In
determining the timing of demand letters, agencies should give due
regard to the need to act promptly so the ability to refer a debt for
tax refund offset will not be unduly delayed.
(b) Before the Department refers a debt to IRS for tax refund
offset, it will make a reasonable attempt to notify the debtor that:
(1) The debt is past-due;
(2) Unless the debt is repaid or a satisfactory repayment agreement
established within 60 days thereafter, it will be referred to IRS for
offset from any overpayment of tax remaining after taxpayer liabilities
of greater priority have been satisfied; and
(3) The debtor will have a minimum of 60 days from the date of
notification to present evidence that all or part of the debt is not
past-due or legally enforceable, and the Department will consider this
evidence in a review of its determination that the debt is past-due and
legally enforceable. The debtor will be advised where and to whom
evidence is to be submitted.
(c) The Department will make a reasonable attempt to notify the
debtor by using the most recent address information obtained from the
IRS, unless written notification is received from the debtor that
notices from the Department are to be sent to a different address.
(d) The notification required by paragraph (b) of this section and
sent to the address specified in paragraph (c) of this section may, at
the option of the Department, be incorporated into demand letters
required by paragraph (a) of this section.
