Agency Debt Management

Agency Cross-Servicing Responsibilities

Overview

Background

Federal agencies are required to aggressively pursue collection action on all debts arising out of their activities. Debts owed to the United States can arise from various Federal Government programs and actions, including loan and loan guarantee programs; overpayments to beneficiaries, Federal employees, or contractors; or penalties and fines owed from violations of law, etc. Each Federal agency should establish and implement effective collection strategies that suit its needs. Collection strategies must meet all statutory and regulatory requirements, and should include use of all authorized and appropriate debt collection tools. One such tool is the referral of nontax debts to Fiscal Service for debt collection services.

The Debt Collection Improvement Act of 1996 (DCIA) generally requires Federal agencies to transfer any nontax debt delinquent 180 days or more to Fiscal Service for debt collection services. After transfer, Fiscal Service must take appropriate action to service, collect, compromise, or suspend or terminate collection action on the debt (commonly referred to as “Cross-Servicing”). The Digital Accountability and Transparency Act of 2014 amended the DCIA to require agencies to notify Fiscal Service of all debts delinquent over 120 days for purposes of administrative offset.

Fiscal Service has been providing delinquent debt collection services to Federal agencies since the enactment of the DCIA in 1996. Before publication of this TFM chapter, Fiscal Service and Federal agencies entered into Letters of Agreement describing their respective roles and responsibilities. This TFM chapter replaces and supersedes all existing Letters of Agreement. To the extent that this TFM chapter changes current processes, Fiscal Service will work with each Federal agency to implement the provisions of this TFM chapter.

Scope

There are two provisions requiring Federal agencies to submit debts to Fiscal Service for collection:

31 U.S.C. § 3711(g) requires Federal agencies to transfer any nontax debt delinquent 180 days or more to Fiscal Service for general debt collection services; and

31 U.S.C. § 3716(c)(6) requires Federal agencies to notify Fiscal Service of all nontax debts delinquent over 120 days for purposes of administrative offset.

The provisions of this TFM chapter:

Apply to all Federal agencies that are required or authorized to transfer debts to Fiscal Service per 31 U.S.C. § 3711(g); and

Govern the collection of debts required to be, or that have been, transferred to Fiscal Service per 31 U.S.C. § 3711(g).

When a Federal agency refers a debt to Fiscal Service pursuant to 31 U.S.C. § 3711(g) at 120 days or less delinquent, and authorizes Fiscal Service in the agency’s profile form to submit the debt to the Treasury Offset Program, the agency will also be in compliance with the requirement to notify Treasury of the debt for administrative offset purposes at or prior to 120 days delinquent.

General Rule

Creditor agencies must transfer all nonexempt debts that are delinquent 180 days or more to Fiscal Service for debt collection services. However, if an agency relies on Fiscal Service to submit its debts for administrative offset on the agency’s behalf, the agency must transfer the debts to Fiscal Service no later than 120 days delinquent. Fiscal Service strongly encourages creditor agencies to transfer all eligible delinquent debts to Fiscal Service for debt collection services as early as possible without waiting for the debt to be 120 days delinquent. Fiscal Service provides delinquent debt collection services to creditor agencies in compliance with applicable law. Creditor agencies are strongly encouraged to use all available debt collection tools.

Authority

Fiscal Service Authority to Service Debts and Promulgate Regulations

This TFM chapter is issued under the authority of Section 31001(m)(1) of the Debt Collection Improvement Act of 1996, Public Law 104-134, 110 Stat. 1321-358 (1996), codified at 31 U.S.C. § 3711(g), and corresponding regulations codified at 31 CFR § 285.12. Fiscal Service, as a designated debt collection center, is responsible for collecting and otherwise servicing transferred debts. Fiscal Service is also responsible for promulgating regulations governing the roles and responsibilities of Fiscal Service and creditor agencies regarding the collection of delinquent Federal nontax debt.

Fiscal Service Authority to Charge Fees

Per 31 U.S.C. § 3711(g)(6), Fiscal Service is authorized to charge fees to creditor agencies to cover the costs of servicing transferred debts. Per 31 U.S.C. § 3717(e), creditor agencies are generally required to charge debtors for the costs of collection, including the fees charged by Fiscal Service for the servicing of such debts. For a further discussion of fees and costs, see Section 4045, Fees and Costs.

Fiscal Service Authority to Compromise Debts and/or Collect Debts in Installments

Per 31 U.S.C. §§ 3711(g)(1)(B), 3711(g)(4), and 3711(g)(5), and the authority delegated to Fiscal Service by the Department of Justice, Fiscal Service is authorized to take appropriate action to collect or compromise transferred debts. With regard to debts that have been transferred to Fiscal Service for debt collection services, Fiscal Service has the same authority available to the head of the creditor agency to compromise transferred debts or collect transferred debts in installments.

In addition, the Department of Justice has delegated to Fiscal Service the authority to compromise debts with a principal balance of up to $500,000. Fiscal Service may accept proposed compromises of debts with a principal balance of over $500,000 only with the approval of the Department of Justice.

Fiscal Service may collect and/or compromise debts in accordance with applicable Federal law, including the Federal Claims Collection Standards (31 CFR Parts 900-904). Prior to transferring debts, the creditor agency must provide to Fiscal Service a detailed description of any agency or debt-specific laws, policies, and procedures that govern the compromise and/or collection of its debts. See subsection 4035.10, Complete an Agency Profile Form.

Fiscal Service Authority to Suspend and/or Terminate Collection Action

Per 31 U.S.C. §§ 3711(g)(1)(B), 3711(g)(4), and 3711(g)(5), and the authority delegated to Fiscal Service by the Department of Justice, Fiscal Service is authorized to terminate collection action on transferred debts with a principal balance of up to $500,000. Fiscal Service may approve the termination of collection action for debts with a principal balance of over $500,000 only with the approval of the Department of Justice.

Per subsection 4035.20, Certify Debt, when a creditor agency transfers a debt to Fiscal Service, the creditor agency certifies that the debt is valid, legally enforceable, and that all requisite due process has been completed. Fiscal Service may, but is not obligated to, suspend collection activity if Fiscal Service determines that the creditor agency’s certification is incomplete, inaccurate, or unreliable, or if Fiscal Service determines that facts have changed since the creditor agency certified the debt and the debt is no longer valid and/or legally enforceable. In addition, Fiscal Service may suspend and/or terminate collection action in accordance with applicable Federal law, including the Federal Claims Collection Standards (31 CFR Parts 900-904).

Creditor Agency Responsibilities

Complete an Agency Profile Form

Each creditor agency must identify the programs for which Fiscal Service’s debt collection services are required or desirable. For each such program, before transferring debts to Fiscal Service, the creditor agency must complete an agency profile form. Creditor agencies may combine programs with the same requirements on one agency profile form. Creditor agencies must update this form as necessary to reflect program changes. The agency profile form must be in the medium or media that Fiscal Service directs.

The creditor agency must, in the agency profile form, advise Fiscal Service of any statutory or regulatory provisions that uniquely affect its collection activities. The creditor agency should also describe any relevant policies it has with regard to the collection of its transferred debts.

If the head of the creditor agency does not have full authority with regard to the compromise of its debts and/or the collection of its debts in installments (or if there is a legal prohibition on the delegation of this authority to Fiscal Service), the creditor agency must fully describe such limitations in the agency profile form, including citations to specific legal authorities. The creditor agency also must describe thoroughly the specialized process through which these debts can be compromised and/or collected in installments, including the relevant factors that would be considered through this specialized process. For these debts, the creditor agency must approve or disapprove any compromise agreements proposed by Fiscal Service within 10 business days of such a request, or within such other time period as allowed by Fiscal Service.

Certify Debt

The creditor agency must execute an annual written agreement with Fiscal Service certifying, among other things, that, at the time of the transfer of any debts:

The debts are delinquent;

The debts are valid;

The debts are legally enforceable in the amount stated;

There are no legal bars to collection; and

The creditor agency has completed all requisite due process.

For the purpose of this certification requirement, the term “transferring debts” includes the transfer to Fiscal Service of any information or documentation related to a debt; any documentation or information related to a debtor; and any updates, changes, corrections, or modifications made to any debts or debtor information previously transferred to Fiscal Service. The creditor agency must ensure that any person authorized to transfer a debt to Fiscal Service for the creditor agency understands that, by transferring the debt, he or she is making a certification to Fiscal Service under penalty of perjury. The creditor agency must ensure that only appropriate persons are authorized to transfer debts to Fiscal Service.

Comply With Relevant Laws and Authorize Use of All Appropriate Debt Collection Tools

The creditor agency must comply with all relevant statutes and regulations, and must advise Fiscal Service of any statutory or regulatory provisions that uniquely affect the creditor agency’s debt collection activities. In the agency profile form, creditor agencies must authorize Fiscal Service to use all collection tools listed in subsection 4040.10, Collect and Compromise Transferred Debt, or provide a specific explanation of why a collection tool is not legally authorized. Alternatively, if, in consultation with Fiscal Service, the creditor agency determines that the use of a particular collection tool is not in the best interest of the Government, then the creditor agency must provide to Fiscal Service a written explanation of its determination. Fiscal Service, in its discretion, will make the final determination regarding whether the use of a collection tool is not in the best interest of the Government.

Creditor agencies must establish regulations and/or procedures with regard to:

Collection of delinquent debt, generally;

Collection of delinquent debt through administrative offset (including salary offset) and tax refund offset;

Reporting delinquent debt to credit bureaus;

Collection of delinquent debt through administrative wage garnishment;

Responding to debt disputes and credit bureau disputes;

Responding to requests for additional information and, if applicable, requests to accept proposed compromise or installment agreements; and

Collection of delinquent debt through any other debt collection tools for which regulations and/or established procedures are required.

Creditor agencies should consult with their counsel for assistance with establishing regulations and/or procedures.

Transfer Eligible Debts to Fiscal Service; Provide Debt and Debtor Information to Fiscal Service

Creditor agencies must transfer all nonexempt debts that are delinquent 180 days or more to Fiscal Service for debt collection services, and are strongly encouraged to transfer all eligible debts sooner. If an agency relies on Fiscal Service to submit its debts for administrative offset, however, the agency must transfer those debts to Fiscal Service once they are over 120 days delinquent. After transfer, the creditor agency should cease all collection activity and communication with the debtor and must refer all inquiries from the debtor to Fiscal Service. The creditor agency remains solely responsible at all times for ensuring the continued validity and enforceability of the debt.

Before transferring a debt to Fiscal Service, the creditor agency must make written demand on the debtor for payment and must provide the debtor with all required due process. At the time of transfer, the creditor agency must provide Fiscal Service, in the medium or media that Fiscal Service directs, the following information:

Name of the debtor;

Address of the debtor, if available;

Taxpayer identification number, if available;

Principal balance of the debt;

Date on which the debt became delinquent;

Applicable statute of limitations for pursuing litigation, if available; and

Any other information Fiscal Service requires to be included in the transfer file.

In addition, at the time of transfer or as soon thereafter as practicable, the creditor agency must provide Fiscal Service with accurate, appropriate information, in the medium or media that Fiscal Service directs, to facilitate the performance of Fiscal Service’s debt collection operations and to support the validity of the debt, including, if applicable:

Copies of signed promissory notes;

Copies of citations and/or notifications of fines or penalties;

Copies of initial demand letters establishing debts;

Copies of due-process notices; and

Any other supporting documentation, as appropriate or as may be requested by Fiscal Service.

The creditor agency must, at the time of transfer and from time to time as it receives updated information, provide Fiscal Service with information about a debtor, in a timely manner, including:

Updated addresses;

Taxpayer identification numbers; and

Other information needed to collect debts.

The creditor agency must reply within 10 business days to any request by Fiscal Service for information regarding a transferred debt or debtor, including requests for:

Relevant documentation or accounting records.

Information needed to respond to inquiries resulting from the Government’s collection efforts. Such inquiries may be from Congress, inspectors general, requestors under the Freedom of Information Act or the Privacy Act, or other relevant parties; and

Information needed to respond to a dispute (whether received from the debtor or another source).

The creditor agency must promptly conduct all required reviews and hearings or must authorize Fiscal Service to do so on its behalf pursuant to a written agreement. The creditor agency must promptly notify Fiscal Service about any litigation resulting from Fiscal Service’s collection efforts or impacting the Government’s debt collection authorities. The creditor agency also must assist Fiscal Service in defending litigation, resulting from Fiscal Service’s collection efforts. In addition, with regard to Fiscal Service’s efforts to collect debt through litigation, the creditor agency must, upon request, assist Fiscal Service by providing supporting documentation, live witnesses, and other litigation support.

Maintain Records

The creditor agency must maintain timely and accurate delinquent debt records, including updated information such as debtor information and debt balances. The creditor agency remains the owner of the debt throughout the debt collection process. Per subsection 4040.30, Modify Records, Fiscal Service will, if appropriate, update and/or modify its delinquent debt and debtor records with information obtained from its skiptracing and asset-location services. The creditor agency must notify Fiscal Service as soon as it learns that any such updates or modifications to such records are incorrect.

Recall and Return Transferred Debt

The creditor agency must recall a transferred debt if:

The debtor has filed for bankruptcy and the automatic stay is in effect;

The debt is not enforceable;

The debt is not delinquent;

The debt is not valid or has been paid in full;

The creditor agency discovers that it incorrectly certified the debt; or

The creditor agency discovers any other reason that would render its certification invalid.

Upon the recall of a debt in accordance with this section or the return of a debt by Fiscal Service in accordance with subsection 4040.50, Return Transferred Debt, the creditor agency must service, collect, or compromise the debt, or must suspend or terminate collection action on the debt. If the creditor agency determines that termination of collection action is authorized and appropriate, it should consider whether administrative offset per 31 U.S.C. § 3716 might still be appropriate.

The creditor agency may transfer previously returned or recalled debts back to Fiscal Service for servicing, if appropriate.

Debt Collection Centers

Overview

Introduction

This section about Debt Collection Centers sets forth the standards and procedures that the Department of the Treasury (Treasury), acting through the Bureau of the Fiscal Service (Fiscal Service), uses to designate debt collection centers. It also outlines the responsibilities of designated debt collection centers. This section about Debt Collection Centers replaces and supersedes all versions of the “Federal Debt Collection Center Designation: Policies, Procedures, and Standards” issued by Treasury. Any prior decisions under those standards remain in effect until or unless expressly revoked. The term debt collection center has the same definition as set forth in 31 CFR 285.12(a). For the purposes of this TFX subsection, debt collection center does not include Fiscal Service (including Fiscal Service’s Cross-Servicing Program).

Background

Federal agencies generally must refer debt that has been delinquent for a period of 180 days to Fiscal Service’s Cross-Servicing Program for collection action. However, debts that have been referred to a designated debt collection center are exempt, for a period determined by the Secretary, from this requirement.

Scope

The provisions of this section about Debt Collection Centers:

Address certain responsibilities of debt collection centers,

Prescribe the standards under which the Secretary will evaluate and respond to requests for an initial designation as a debt collection center pursuant to 31 U.S.C. § 3711(g)(3), and to requests for a renewal of such a designation, and

Explain how a federal agency may seek a designation or renewal.

Authorities

The Secretary has the authority to designate and withdraw the designation of debt collection centers operated by federal agencies. See 31 U.S.C. § 3711(g)(3). The Secretary is also authorized to establish standards for the designation and operation of debt collection centers. See 31 U.S.C. § 3711(g)(10) and 31 CFR 285.12(f).

Authorities and Responsibilities of Debt Collection Centers —Referral of Debts from Client Agencies

After designation by Fiscal Service, and to the extent permitted by the designation, debt collection centers may solicit client agencies to refer debts.

Use of Debt Collections Tools

The debt collection center must take appropriate action to collect (or suspend or terminate collection action) on any referred debts. A debt collection center must use all appropriate debt collection tools, consistent with the debt collection strategy it submitted with its application for designation or renewal. A debt collection center must be equipped with the appropriate systems, policies, and debt collection strategies that enable it to use all authorized debt collection tools.

A debt collection center must notify Fiscal Service of any substantial change in its debt collection processes (via the address in the section below- Applications for Initial Designation or Renewal of Designation) prior to implementation.

Referral of Debts to Fiscal Service for Collection by the Treasury Offset Program (TOP)

Where appropriate or required by law, a debt collection center must refer debts to Fiscal Service for collection through TOP, including tax refund offset and offset of certain other federal and state payments.

Referral of Debts to the Department of Justice

Where appropriate or required by law, a debt collection center must refer debts to the Department of Justice for litigation, compromise, suspension, or termination of collection activity.

With regard to any debt-based in whole or in part on conduct in violation of the antitrust laws or to any debt involving fraud, the presentation of a false claim, or misrepresentation on the part of the debtor or any party having an interest in the claim, a debt collection center must promptly refer the case to the Department of Justice for action.

Debt Collection Data and Report on Debts

A debt collection center must have the ability to age debts, know where a specified debt is in the collection process, and determine collections on delinquent debt versus current debt. A debt collection center must also keep accurate records on all debts (including proper accrual and assessment of interest, penalties, and administrative costs on all debts).

A debt collection center must also provide sufficient information to client agencies so that its client agencies can maintain internal debt records and accurately and completely report information on the TROR. If so agreed, between any client-agency and the debt collection center, the debt collection center may complete any required TROR reporting on the client agency’s behalf.

Fees for Debt Collection Services

Debt collection centers may charge fees to client agencies up to the full cost of debt collection services provided. See 31 U.S.C. §§ 3711(g)(6)-(8) and 31 CFR § 285.12(j).

Initial Designation and Renewal Standards

General Guidelines

The Secretary may designate (or renew the existing designation of) an agency as a debt collection center. The Secretary will make such a designation (or renewal) for specific types of debt and for a specified period of time.

Standards for Initial Designation and Renewal

While no one factor is determinative, when analyzing an agency’s application for designation as a debt collection center or renewal of such designation, the Secretary will consider whether the agency:

can more effectively service debts compared with Fiscal Service’s Cross-Servicing Program,

Has an effective debt collection strategy that provides for use of all appropriate debt collection tools, complies with relevant debt collection law,

To the extent applicable, demonstrates the historical ability to collect its own debts and debts owed to other agencies, and

To the extent applicable, charges fees to client agencies using appropriate legal authorities and an appropriate cost methodology.

To the extent that an agency proposes to service debts that are already exempt from the requirement to refer the debt to Fiscal Service’s Cross-Servicing Program pursuant to TFM Volume I, Part 3, Chapter 5200, Exemption of a Class of Debt from Referral to the Treasury Cross-Servicing Program, the Secretary may determine that some of these factors are not relevant.

Applications for Initial Designation or Renewal of Designation

Informal Discussions

If, after reviewing the guidelines in this section, an agency believes that a debt collection center designation (or renewal of a designation) may be warranted, agency officials should contact Fiscal Service to discuss the need for a designation (or renewal of a designation) and other options that may be available to address the agency’s concerns. If the agency decides to proceed with seeking designation, it should submit a written draft application (see the subsections below) to Fiscal Service for review and comment before submitting its formal request for designation. Fiscal Service will review the draft application and initiate informal discussions. The contact at Fiscal Service for these preliminary steps is as follows:

Department of the Treasury
Bureau of the Fiscal Service
Debt Management Services
Director, Receivables Management & Debt Services Division

3201 Pennsy Drive, Building E
Landover, MD 20785

202-874-6810

Formal Application —Generally

If, after informal discussions with Fiscal Service in accordance with the Informal Discussion guidance above, an agency determines that it wishes to make a formal request for an initial designation (or a renewal of an existing designation), the request must be made, in writing, by the head of the agency or, if appropriately delegated, by the Chief Financial Officer or other senior agency official of an equivalent level.

Required Information

In its application, the agency should:

  • Identify what types of debts it wishes to service,
  • Address whether and how it meets the guidance specified above in the Initial Designation and Renewal Standards, including by:
    • Describing why it is better suited to service the debts compared with Fiscal Service’s Cross-Servicing Program,
    • Describing its debt collection strategy, including the timeframes for the use of its debt collection tools. Debt collection tools include, but are not limited to due process notices, opportunities for review and inspection of records, demand and other letters, phone calls, credit bureau reporting, private collection agencies, litigation, offset, including internal offset and referral to TOP,
    • Administrative wage garnishment, and 1099-C reporting. The agency should detail specific actions that the agency takes or will take on delinquent debt, including when these actions are or will be taken,
    • Providing historical data that supports and confirms the use of all appropriate debt collection tools outlined in the agency’s debt collection strategy,
    • Providing annual collection rates for the past five years (dollar amounts collected compared to dollar amount of debt outstanding, and number of collections compared to number of debts) on All debt owed to the agency or that the agency is servicing, including delinquent debt. The data should separately detail collection rates for current debt, debt delinquent for 180 days or less, and debts more than 180 days delinquent,
    • Providing information on the direct and indirect costs of collections, including data on the agency’s actual and projected costs for financial system modernization and/or maintenance of legacy financial systems over the next three to five years,
    • Indicating whether it charges its client agencies fees and, if so, providing information regarding the authority under which those fees are charged, and an explanation of its fee and costs methodology, and
    • Include evidence that the agency can fulfill all the responsibilities of being a debt collection center, including those listed throughout this section about Debt Collection Centers.
Addressing the Application

The request should be addressed to:

Commissioner
Bureau of the Fiscal Service
Department of the Treasury

3201 Pennsy Drive,Building E
Landover,MD 20785

and send a copy to:

Department of the Treasury
Bureau of the Fiscal Service
Debt Management Services
Director, Receivables Management & Debt Services Division

3201 Pennsy Drive, Building E
Landover, MD 20785

Fiscal Service Request for Additional Information

If Fiscal Service determines that an application is incomplete or that it needs more information, Fiscal Service will notify the agency and describe the specific information that must be submitted to complete the application. If, after a reasonable period, the Secretary has not received this additional information, Fiscal Service will notify the requesting official that it considers the agency’s application withdrawn.

Secretary’s Response to an Agency Request for Initial Designation or Renewal

The Secretary will evaluate an agency’s application for an initial designation as a debt collection center (or for renewal of an existing designation) based on the standards listed in Volume I Chapter 5400 Section 5460. The Secretary may take any action regarding the designation decision that he or she determines to be in the best interest of the federal government. Such action may include granting, denying, or limiting the designation in whole or in part, or taking alternative actions, as appropriate. In general, designations or renewals of designations should be for a set period.

The Secretary may designate a debt collection center to collect its own debt and/or debt owed to other federal agencies.

Fiscal Service will provide written notification to the agency of the Secretary’s decision.

Reviews and Withdrawals of Debt Collection Center Designation

Agency-Requested Withdrawals

An agency may request in writing that the Secretary withdraws its debt collection center designation at any time. The withdrawal request must include a specific date for termination of the designation and provide an exit strategy to ensure that there is no interruption in the collection of any debts being serviced by the debt collection center.

In response to an agency’s request, the Secretary will routinely withdraw such designations unless the Secretary determines that the exit strategy and/or the proposed date for termination would substantially interfere with the collection of referred debt, in which case Fiscal Service and the agency will negotiate a mutually agreeable exit strategy and termination date.

Reviews and Treasury-Directed Withdrawals

Fiscal Service may, in its discretion, conduct periodic reviews of a designated debt collection center. Debt collection centers must provide information requested by Fiscal Service to facilitate this review.

The Secretary may determine, based on information and data submitted by the debt collection center for review or any other appropriate data, that it is in the federal government’s best interest to withdraw a debt collection center’s designation. If such a determination is made, the Fiscal Service will notify the head of the agency operating the debt collection center in writing of the decision. The notice will identify the effective date for withdrawal of the designation, which generally will be at least 60 days from the date of the written notice (unless the Secretary determines that an earlier withdrawal date is warranted).

Duty to Transfer Referred Debts Upon Withdrawal

Promptly following the withdrawal of a debt collection center’s designation for any reason, the previously-designated debt collection center must transfer the referred accounts (including all relevant data concerning such accounts) to another debt collection center or the client-agency, as directed by Fiscal Service. The previously designated debt collection center must take timely and good faith action to ensure that the financial interests of the federal government are not jeopardized.

Federal Financial Management Standards

Functions and Activities

Delinquent Debt Collection (FFM.070.010)

Generate and send dunning notices, with due process language, to alert the payers of debt delinquent status;

Determine allocation of amounts collected (e.g., first to penalties and administrative costs, second to interest, then to accounts receivable);

Update receivables based on agency negotiated installment plan or compromise agreement; Request agency internally offset a federal payment;

Consult agency’s legal counsel to determine whether to refer debts to the Department of Justice for litigation or use other litigation authority;

Refer debts to Treasury’s Debt Management Services (DMS) for cross-servicing based on agency advice and as soon as due process requirements are met (i.e., 120 days delinquent);

Includes processing of fines, penalties, and administrative fees

Delinquent Debt Reporting (FFM.070.030)

Provide delinquent debt status information to support federal receivable and collection reporting activities;

Provide delinquent debt information to credit reporting agencies;

Provide deposit summary and detail information to support financial reconciliation activities;

Generate and provide cancellation of debt reports to IRS and debtor;

Generate Treasury Report on Receivables (TROR)

Federal Financial Management System Requirements (FFMSR)

Managing Debt (2.5.1)

Capture debt category (for example, bankruptcy and at private collection agency) to support debt reporting consistent with the TFM.

Managing Debt (2.5.2)

Match delinquent debtor information with payment recipient information within and between federal agencies to affect administrative debt offsets (for example, by administrative wage garnishment and request for paying agency to collect the offset) as required by the CFR as well as OMB Circular No. A-129, and consistent with the TFM.

Managing Debt (2.5.6)

Refer debt for collection (for example, to Treasury if delinquent more than 120 days and to the Department of Justice whenever the agency determines debt is uncollectable) as required by OMB Circular No. A-129 and consistent with the TFM.

Reporting on Debt (2.6.1)

Provide receivable and collection status data to support the receivable and collection reporting activities as defined in OMB Circular No. A-129 and as specified in the TFM.

Use Cases

Bill to Collect

Treasury Financial Manual (TFM)

TFM Volume I, Part 3, Chapter 5400; Standards for a Debt Collection Center Designation

TFM Volume I, Part 4, Chapter 4000; Debt Management Services Collection of Delinquent Nontax Debt

Other Resources

Office of Management and Budget (OMB)

The Office of Management and Budget (OMB) oversees the implementation of the President’s vision across the Executive Branch. OMB carries out budget development and execution that is applicable to Collections and Receivables.

Contact Information

Contact Details

Direct inquiries concerning Debt Management to:

Department of the Treasury
Bureau of the Fiscal Service
Debt Management Services
Receivables Management & Debt Services Division

3201 Pennsy Drive, Building E
Landover, MD 20785

202-874-6810

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Debt Management

This page was last updated on May 24, 2021.