Section 1 Short title
This Act may be cited as the “Verify It Act”.
Verify It Act
A BILL
To require Federal agencies to provide notice and consideration of evidence before submitting debts to the Secretary of the Treasury for collection through reduction of tax refunds, and to restore the 10-year statute of limitations applicable to collection of debt by administrative offset.
Sec. 2 Requirement that Federal agencies provide notice and consideration of evidence before submitting debts to the Secretary of the Treasury for collection through reduction of tax refunds
In general— Section 6402(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(4) Notice; consideration of evidence—A Federal agency may not notify the Secretary under this subsection of any past-due legally enforceable debt until such Federal agency—
“(A) notifies by certified mail with return receipt the person owing the past-due legally enforceable debt that the Federal agency proposes to take action pursuant to this subsection;
“(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 Federal agency has made reasonable efforts to obtain payment of such debt.”
Effective date— The amendment made by this section shall take effect on the date of the enactment of this Act.
Sec. 3 Restoration of statute of limitations
In general— Section 3716(e) of title 31, United States Code, is amended to read as follows:
“(e) This section does not apply—
“(1) to a claim under this subchapter that has been outstanding for more than 10 years; or
“(2) when a statute explicitly prohibits using administrative offset or setoff to collect the claim or type of claim involved.”
Retroactivity— In the administration of section 3716(e) of title 31, United States Code, the following provisions of law shall be treated as if they had never been enacted:
Section 14219 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–234; 122 Stat. 1483), repealed as duplicative enactment by section 4 of Public Law 110–246 (7 U.S.C. 8701 note).
Section 14219 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 2245).