---
kind: "section"
citation: "36 C.F.R. § 1201.40"
title: "36"
number: "1201.40"
heading: "Which debts can NARA refer to the Treasury for collection by offsetting tax refunds?"
url: "https://uscodex.org/cfr/36/1201.40"
---

# §1201.40. Which debts can NARA refer to the Treasury for collection by offsetting tax refunds?

- (a) The regulations in this subpart implement [31 U.S.C. 3720A](/usc/31/3720A.md), which authorizes the Treasury to reduce a tax refund by the amount of a past-due, legally enforceable debt owed to a Federal agency.
- (b) For purposes of this section, a past-due, legally enforceable debt referrable to the Treasury for tax refund offset is a debt that is owed to NARA and:
  - (1) Is at least $25.00;
  - (2) Except in the case of a judgment debt, has been delinquent for at least three months and will not have been delinquent more than 10 years at the time the offset is made;
  - (3) **With respect to which NARA has—**
    - (i) Given the debtor at least 60 days to present evidence that all or part of the debt is not past due or legally enforceable;
    - (ii) Considered evidence presented by the debtor; and
    - (iii) Determined that an amount of the debt is past due and legally enforceable;
  - (4) **With respect to which NARA has notified or has made a reasonable attempt to notify the debtor that—**
    - (i) The debt is past due, and
    - (ii) Unless repaid within 60 days of the date of the notice, the debt may be referred to the Treasury for offset against any refund of overpayment of tax; and
  - (5) All other requirements of [31 U.S.C. 3720A](/usc/31/3720A.md) and the Treasury regulations relating to the eligibility of a debt for tax return offset ([31 CFR 285.2](/cfr/31/285.2.md)) have been satisfied.

## Notes

### Authority

Authority: 5 U.S.C. 5514; 31 U.S.C. 3701-3720A, 3720D; 44 U.S.C. 2104(a).

### Source

Source: 67 FR 44757, July 5, 2002, unless otherwise noted.