SAMPLE COMPROMISE MEMORANDUM

 

MEMORANDUM TO FILE:

 

The claimant in the attached case is indebted to DEEOIC in the amount of {insert amount}.  The indebtedness arose because the Office accepted a claim for {insert} condition which was later rescinded by decision dated {insert date}.  The claimant was fully advised of his rights in the matter of the overpayment but did not request a review of the documents or a telephone conference.  The decision regarding the overpayment was made final by letter decision dated {insert date}.

 

The claimant has agreed that a certificate in the amount of {insert amount} be paid in partial settlement of the debt and he proposed that we accept this in full settlement.  The claimant submitted financial reports showing that his income is derived solely from a pension under the Civil Service Retirement Act and Social Security benefits.  Also, the claimant has submitted documentation of his expenses which, according to the calculations in the file, consume virtually all of his income.  There is no indication of fraud in this case.

 

Since it appears extremely unlikely that the debt can be recouped in a reasonable period of time, either voluntarily or through legal proceedings, given the claimant's age, health, and financial circumstances, I recommend that this proposal for settlement be accepted and that an order be issued compromising the remainder of the debt upon receipt of {insert amount}.