---
kind: "range"
citation: "20 C.F.R. §§ 408.940–408.946"
title: "20"
from: "408.940"
to: "408.946"
count: 7
url: "https://uscodex.org/cfr/20/408.940..408.946"
---

# §408.940. When will we refer an SVB overpayment to the Department of the Treasury for tax refund offset?

- (a) **General.** The standards we will apply and the procedures we will follow before requesting the Department of the Treasury to offset income tax refunds due you to recover outstanding overpayments are set forth in [§§ 408.940 through 408.946](/cfr/20/408.940..408.946.md) of this subpart. These standards and procedures are authorized by [31 U.S.C. 3720A](/usc/31/3720A.md), as implemented through Department of the Treasury regulations at [31 CFR 285.2](/cfr/31/285.2.md).
- (b) We will use the Department of the Treasury tax refund offset procedure to collect overpayments that are certain in amount, past due and legally enforceable and eligible for tax refund offset under regulations issued by the Secretary of the Treasury. We will use these procedures to collect overpayments from you only when you are not currently entitled to monthly SVB under title VIII of the Act, and we are not recovering your SVB overpayment from your monthly benefits payable under title II of the Act. We refer overpayments to the Department of the Treasury for offset against Federal tax refunds regardless of the amount of time the debts have been outstanding.

# §408.941. Will we notify you before we refer an SVB overpayment for tax refund offset?


Before we request that an overpayment be collected by reduction of Federal and State income tax refunds, we will send a written notice of our action to the overpaid person. In our notice of intent to collect an overpayment through tax refund offset, we will state:

- (a) The amount of the overpayment; and
- (b) That we will collect the overpayment by requesting that the Department of the Treasury reduce any amounts payable to the overpaid person as refunds of Federal and State income taxes by an amount equal to the amount of the overpayment unless, within 60 calendar days from the date of our notice, the overpaid person:
  - (1) Repays the overpayment in full; or
  - (2) Provides evidence to us at the address given in our notice that the overpayment is not past due or legally enforceable; or
  - (3) **Asks us to waive collection of the overpayment under section 204(b) of the Act.**
- (c) The conditions under which we will waive recovery of an overpayment under section 808(c) of the Act;
- (d) That we will review any evidence presented that the overpayment is not past due or not legally enforceable;
- (e) That you have the right to inspect and copy our records related to the overpayment as determined by us and you will be informed as to where and when the inspection and copying can be done after we receive notice from you requesting inspection and copying.

# §408.942. Will you have a chance to present evidence showing that the overpayment is not past due or is not legally enforceable?

- (a) **Notification.** If you receive a notice as described in [§ 408.941](/cfr/20/408.941.md) of this subpart, you have the right to present evidence that all or part of the overpayment is not past due or not legally enforceable. To exercise this right, you must notify us and present evidence regarding the overpayment within 60 calendar days from the date of our notice.
- (b) **Submission of evidence.** You may submit evidence showing that all or part of the debt is not past due or not legally enforceable as provided in [paragraph (a)](#a) of this section. Failure to submit the notification and evidence within 60 calendar days will result in referral of the overpayment to the Department of the Treasury, unless, within this 60-day time period, you ask us to waive collection of the overpayment under [§ 408.910](/cfr/20/408.910.md) and we have not yet determined whether we can grant the waiver request. If you ask us to waive collection of the overpayment, we may ask you to submit evidence to support your request.
- (c) **Review of the evidence.** If you submit evidence on a timely basis, we will consider all available evidence related to the overpayment. We will make findings based on a review of the written record, unless we determine that the question of indebtedness cannot be resolved by a review of the documentary evidence.
- (d) **Written findings.** We will issue our written findings including supporting rationale to you, your attorney or other representative. The findings will be our final action with respect to the past-due status and enforceability of the overpayment.

# §408.943. What happens after we make our determination on your request for review or your request for waiver?

- (a) If we make a determination that all or part of the overpayment is past due and legally enforceable and/or your waiver request cannot be granted, we will refer the overpayment to the Department of the Treasury for recovery from any Federal income tax refund due you. We will not suspend our referral of the overpayment to the Department of the Treasury under [§ 408.945](/cfr/20/408.945.md) of this subpart pending any further administrative review of the waiver determination that you may seek.
- (b) We will not refer the overpayment to the Department of the Treasury if we reverse our prior finding that the overpayment is past due and legally enforceable or, upon consideration of a waiver request, we determine that waiver of recovery of the overpayment is appropriate.

# §408.944. How can you review our records related to an SVB overpayment?

- (a) **What you must do.** If you intend to inspect or copy our records related to the overpayment, you must notify us stating your intention to inspect or copy.
- (b) **What we will do.** If you notify us that you intend to inspect or copy our records related to the overpayment as described in [paragraph (a)](#a) of this section, we will notify you of the location and time when you may do so. We may also, at our discretion, mail copies of the overpayment-related records to you.

# §408.945. When will we suspend tax refund offset?


If, within 60 days of the date of the notice described in [§ 408.941](/cfr/20/408.941.md) of this subpart, you notify us that you are exercising a right described in [§ 408.942(a)](/cfr/20/408.942.md?p=a) of this subpart and submit evidence pursuant to [§ 408.942(b)](/cfr/20/408.942.md?p=b) of this subpart or request a waiver under [§ 408.910](/cfr/20/408.910.md) of this subpart, we will suspend any notice to the Department of the Treasury until we have issued written findings that affirm that an overpayment is past due and legally enforceable and, if applicable, make a determination that a waiver request cannot be granted.


# §408.946. What happens if your tax refund is insufficient to cover the amount of your SVB overpayment?


If your tax refund is insufficient to recover an overpayment in a given year, the case will remain with the Department of the Treasury for succeeding years, assuming that all criteria for certification are met at that time.