---
kind: "section"
citation: "7 C.F.R. § 3.40"
title: "7"
number: "3.40"
heading: "Scope."
url: "https://uscodex.org/cfr/7/3.40"
---

# §3.40. Scope.

- (a) This subpart specifies the procedures to be used by agencies in collecting debts by administrative offset.
- (b) **This subpart does not apply to—**
  - (1) Debts arising under the Social Security Act, except as provided in [42 U.S.C. 404](/usc/42/404.md);
  - (2) Payments made under the Social Security Act, except as provided for in [31 U.S.C. 3716(c)](/usc/31/3716.md?p=c) (see [31 CFR 285.4](/cfr/31/285.4.md), Federal Benefit Offset);
  - (3) Debts arising under, or payments made under, the Internal Revenue Code (except for offset of tax refunds) or the tariff laws of the United States;
  - (4) Offsets against Federal salaries (such offsets are covered by [subpart F](/cfr/7/subpartF.md) of this part);
  - (5) Offsets under [31 U.S.C. 3728](/usc/31/3728.md) against a judgment obtained by a debtor against the United States;
  - (6) Offsets or recoupments under common law, State law, or Federal laws specifically prohibiting offsets or recoupments of particular types of debts;
  - (7) Offsets in the course of judicial proceedings, including bankruptcy;
  - (8) Intracontractual offsets to satisfy contract debts taken by a contracting officer under the Contract Disputes Act, [41 U.S.C. 7101-7109](/usc/41/7101-7109.md); or
  - (9) **Foreign Debt.**
- (c) Unless otherwise provided for by contract or law, debts or payments that are not subject to administrative offset under [31 U.S.C. 3716](/usc/31/3716.md) may be collected by administrative offset under the common law or other applicable statutory authority.
- (d) In bankruptcy cases, agencies may request legal advice from OGC concerning the impact of the Bankruptcy Code, particularly 11 U.S.C. [106](/usc/11/106.md), [362](/usc/11/362.md), and [553](/usc/11/553.md) on pending or contemplated collections by offset.

## Notes

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1506, 1981, 1981a, 1981d, and 2008h; 15 U.S.C. 714b; 31 U.S.C. 3701, 3711, 3716-18, and 3720B; and 31 CFR parts 285 and 901-904.

### Source

Source: 85 FR 36672, June 17, 2020, unless otherwise noted.