1.35.13  Administrative Waiver

Manual Transmittal

January 31, 2012

Purpose

(1) This transmits the new Internal Revenue Manual 1.35.13, Administrative Accounting, Administrative Waiver.

Material Changes

(1) This Internal Revenue Manual (IRM) contains policies and procedures for waiving claims against current and former IRS employees.

Effect on Other Documents

None

Audience

All Divisions and Functions.

Effective Date

(01-31-2012)

Pamela J. LaRue
Chief Financial Officer

1.35.13.1  (01-31-2012)
Overview

  1. This Internal Revenue Manual (IRM) provides policies and procedures for waiving claims against current and former IRS employees.

  2. Its provisions apply to all current and former IRS employees that owe non-tax debts to the IRS.

  3. Current and former IRS employees who owe a non-tax debt are referred to as "debtors" throughout this IRM.

  4. The Chief Financial Officer, Financial Management, Office of Financial Management Policy develops and maintains this IRM.

1.35.13.2  (01-31-2012)
Background

  1. Statutes, regulations, and judicial decisions established the Federal Government's obligation to collect amounts it is owed. Key statutes include the Federal Claims Collection Act of 1966, the Debt Collection Act of 1982, and the Debt Collection Improvement Act of 1996. Key regulations include the Federal Claims Collection Standards (31 Code of Federal Regulations (CFR) 900-904). The policy of the Department of the Treasury is to enforce collection of all non-tax debts in accordance with these statutory and regulatory requirements.

  2. An agency's ability to forgive a debt or waive its collection is limited to situations where there is specific statutory authority. Agencies have been given the authority, under 5 United States Code (USC) 5584, to waive claims, in whole or in part, against an employee arising out of erroneous payments of pay and allowances, travel, transportation, and relocation expenses and allowances.

  3. Agencies have the authority to waive the collection of training debts under 5 USC 4118.

  4. These statutes and their implementing regulations provide that an agency may consider waiving the collection of a debt when its collection would be against equity and good conscience and not in the best interest of the United States. However, an agency may not waive a debt if there is any indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee or any other person having an interest in obtaining a waiver of the claim.

  5. These statutes do not allow IRS to waive the collection of debts owed by a commercial entity or by non-employee debtors.

1.35.13.3  (01-31-2012)
Authority

  1. The authorities for this IRM include:

    1. 5 USC Section 4108, Employee Agreements; Service After Training.

    2. 5 USC Section 5584, Claims for Overpayment of Pay and Allowances, and of Travel, Transportation, and Relocation Expenses and Allowances.

    3. 31 USC Subchapter II, Claims of the United States Government.

    4. 31 CFR Sections 900-904, Federal Claims Collection Standards.

    5. Treasury Directive 34-01, Waiving Claims Against Treasury Employees for Erroneous Payments.

    6. Delegation Order 1-15, Waiving Claims Against Current or Former Employees for Erroneous Payments, in IRM 1.2.40, Delegations of Authority for Organization, Finance, and Management.

    7. Memorandum to IRS Commissioner from Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer, Department of the Treasury, "Delegation of Limited Waiver and Appeal Authority for Employee Salary Overpayments," dated March 17, 2009.

1.35.13.5  (01-31-2012)
Definitions

  1. In this IRM, the terms below have the following meanings:

    1. Administrative Debt - A debt that occurs as a result of administrative actions.

    2. Appeal - An administrative or judicial proceeding in which the debtor requests an independent review of the determination that the debtor owes all or part of the debt.

    3. Debt - An amount of money which has been determined by an appropriate Federal official to be owed to the United States from a current employee, a former employee, a commercial entity, or an entity other than another Federal agency or foreign country.

    4. Debt Collection - The efforts to recover amounts due after the debtor fails to make the payment.

    5. Debtor - A current or former employee, a commercial entity, or an entity other than another Federal agency, who is indebted to the United States.

    6. Delinquent - A debt status signifying that the amount owed was not paid by the date specified in the IRS initial billing notice, unless other satisfactory payment arrangements have been made, or by the end of the "grace period" for repayment agreements.

    7. Erroneous Payment - An incorrect or improper payment, usually arising as the result of an administrative processing error.

    8. Overpayment - Any compensation paid to an employee that is in excess of the amount owed to the employee and to which the employee is not entitled.

    9. Penalty - An amount the U.S. Government may assess, at a statutory rate, as an addition to a delinquent debt.

    10. Principal - An amount owed by the debtor to the IRS, excluding interest, administrative costs, penalty, fees, and prepaid charges.

    11. Restitution - Compensation for a loss, damage, or injury.

    12. Salary Offset - The process of collecting a percentage or a set dollar amount of a debtor's current salary for a delinquent non-tax debt to satisfy a debt.

    13. Waiver - The cancellation, remission, forgiveness or non-recovery of a debt owed by a debtor to an agency as permitted under statute.

    14. Waiver Request - A petition to grant relief from repaying a debt.

1.35.13.6  (01-31-2012)
Responsibilities

  1. This section provides responsibilities for:

    1. Employees.

    2. Managers/Supervisors.

    3. Chief Financial Officer.

    4. Deputy Chief Financial Officer.

    5. Associate Chief Financial Officer for Financial Management.

    6. Director, Office of Financial Management Policy.

    7. Beckley Finance Center.

    8. Director, Employee Support Services, Agency-Wide Shared Services.

    9. Associate Director, Payroll and Personnel Systems, Agency-Wide Shared Services.

    10. Director, Workforce Progression and Management, Human Capital Office.

    11. Associate Chief Counsel (Financial Management).

    12. Deputy Chief Counsel (Operations).

1.35.13.6.1  (01-31-2012)
Employees

  1. Employees are responsible for:

    1. Providing documentation to support waiver requests.

    2. Responding to requests for additional or supplemental information to support a waiver request.

    3. Reviewing Statements of Earnings and Leave to validate accuracy.

    4. Claiming travel and relocation expenses authorized in accordance with the Federal Travel Regulation and IRM travel policies.

    5. Adhering to Tuition Assistance Program requirements.

    6. Paying all non-tax debts owed to the Internal Revenue Service.

1.35.13.6.2  (01-31-2012)
Managers/Supervisors

  1. Managers/supervisors are responsible for:

    1. Reviewing and verifying that the employee waiver request meets the waiver criteria in the current fiscal year "Manager's Guide for the Tuition Assistance Program," available on the Agency-Wide Shared Services (AWSS) web site at: http://erc.web.irs.gov/.

    2. Signifying concurrence or non-concurrence with employee waiver requests for the Tuition Assistance Program.

    3. Reminding their employees of the need to meet their financial obligations.

    4. Reminding employees of their responsibility to timely pay all undisputed debts.

1.35.13.6.3  (01-31-2012)
Chief Financial Officer

  1. The Chief Financial Officer is responsible for:

    1. Overseeing the IRS administrative debt collection function.

    2. Approving or denying Tuition Assistance Program waiver requests.

1.35.13.6.4  (01-31-2012)
Deputy Chief Financial Officer

  1. The Deputy Chief Financial Officer is responsible for approving or denying requests for waivers less than $7,500 per claim for erroneous payments of travel, transportation, and relocation expenses and allowances.

1.35.13.6.5  (01-31-2012)
Associate Chief Financial Officer for Financial Management

  1. The Associate Chief Financial Officer for Financial Management is responsible for:

    1. Submitting requests for waivers less than $7,500 per claim to the Deputy Chief Financial Officer for erroneous payments of travel, transportation, and relocation expenses and allowances.

    2. Submitting requests for waivers $7,500 or more per claim to the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury, for erroneous payments of travel, transportation, and relocation expenses and allowances.

    3. Submitting all requests for appeal to the DASHR/CHCO when a waiver request is denied for erroneous payments of travel, transportation, and relocation expenses and allowances.

1.35.13.6.6  (01-31-2012)
Director, Office Financial Management Policy

  1. The Director, Office of the Financial Management Policy is responsible for:

    1. Establishing policies and procedures for waiving claims against current or former employees.

    2. Reviewing and recommending action for waiver requests submitted for travel, transportation, relocation expenses and allowances, and the Tuition Assistance Program.

1.35.13.6.7  (01-31-2012)
Beckley Finance Center

  1. The Beckley Finance Center (BFC) is responsible for:

    1. Processing waiver requests for travel, relocation, and training-related debts.

    2. Issuing Form 1099-C, Cancellation of Debt, when applicable.

1.35.13.6.8  (01-31-2012)
Director, Employee Support Services, Agency-Wide Shared Services

  1. The Director, Employee Support Services, Agency-Wide Shared Services (AWSS) is responsible for (excluding Chief Counsel employees):

    1. Approving or denying requests for waivers less than $15,000 per claim for erroneous payments of pay and allowances.

    2. Submitting requests for waivers $15,000 or more per claim for erroneous payments of pay and allowances to the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury.

    3. Submitting requests for appeal to the Director, Workforce Progression and Management (Human Capital Office), when a waiver request is denied for less than $15,000 per claim for erroneous payments of pay and allowances.

    4. Submitting requests for appeal to the DASHR/CHCO when a waiver request is denied for $15,000 or more per claim for erroneous payments of pay and allowances.

    5. Providing information to the National Finance Center, who issues a Form 1099-C, Cancellation of Debt, when applicable.

1.35.13.6.9  (01-31-2012)
Associate Director, Payroll and Personnel Systems, Agency-Wide Shared Services

  1. The Associate Director, Payroll and Personnel Systems, Agency-Wide Shared Services (AWSS) is responsible for responding to debtor requests for waiver of pay and allowances debt.

1.35.13.6.10  (01-31-2012)
Director, Workforce Progression and Management, Human Capital Office

  1. The Director, Workforce Progression and Management, Human Capital Office is responsible for adjudicating requests for appeal when a waiver request is denied for less than $15,000 per claim for erroneous payments of pay and allowances.

1.35.13.6.11  (01-31-2012)
Associate Chief Counsel (Finance and Management)

  1. The Associate Chief Counsel (Finance and Management) is responsible for (Chief Counsel employees only):

    1. Approving or denying requests for waivers less than $15,000 per claim for erroneous payments of pay and allowances.

    2. Submitting requests for waivers $15,000 or more per claim for erroneous payments of pay and allowances to the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury.

    3. Submitting requests for appeal to the Deputy Chief Counsel (Operations) when a waiver request is denied for less than $15,000 per claim for erroneous payments of pay and allowances.

    4. Submitting requests for appeal to the DASHR/CHCO when a waiver request is denied for $15,000 or more per claim for erroneous payments of pay and allowances.

1.35.13.6.12  (01-31-2012)
Deputy Chief Counsel (Operations)

  1. The Deputy Chief Counsel (Operations) is responsible for adjudicating Chief Counsel employee requests for appeal when a waiver request is denied for less than $15,000 per claim for erroneous payments of pay and allowances.

1.35.13.7  (01-31-2012)
General Waiver Requirements and Considerations

  1. The debt must have arisen as the result of:

    1. An erroneous payment of pay and allowances. Examples include insufficient amounts withheld for health or life insurance benefits, and salary overpayments arising from incorrect personnel actions.

    2. An erroneous payment of travel, transportation, or relocation expenses and allowances.

    3. An employee's failure to meet the terms of a relocation service agreement.

    4. An employee's failure to meet the terms of the Tuition Assistance Program.

  2. An employee is not entitled to keep an erroneous payment, even if the erroneous payment was the result of an administrative error by the IRS.

  3. There can be no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee. Fault exists if the employee knew or should have known an error existed. The reimbursement of airport parking expenses in excess of amounts allowed under the Federal Travel Regulation and the under-withholding of health insurance premiums are examples of situations where the employee should have known an error existed.

  4. The employee must submit the waiver request no later than three years after the date the erroneous payment of pay and allowances, travel, transportation, or relocation expenses and allowances was discovered.

  5. The employee must provide documentation which supports the waiver request. It is the employee's responsibility to demonstrate that the collection of the debt would be against equity and good conscience.

  6. IRS suspends collection of a debt during the waiver review process. All interest, penalty, and administrative costs continue to accrue and are added to the amount of the debt if the IRS denies the waiver request.

  7. If IRS approves a waiver request:

    1. IRS refunds amounts already paid by the debtor.

    2. IRS reports the amount waived as income to the debtor on Form 1099-C, Cancellation of Debt, if the amount is $600 or more, including principal, interest, penalty, and administrative costs.

  8. If IRS denies a waiver request for an erroneous payment of pay and allowances, travel, transportation, and relocation expenses and allowances, then:

    1. The debtor has the right to appeal a decision. See IRM 1.35.13.10.

    2. During the appeal process, IRS initiates collection of the debt amount, including administrative fees that accrued during the waiver review process.

    3. The debtor is responsible for the repayment of a debt until the appropriate official renders an appeal decision. The debt includes all interest, penalty, and administrative costs that accrued during the waiver review process and the appeal process.

  9. If an employee with a pending waiver request leaves the IRS, then IRS enforces collection by lump sum deduction from any payments due the employee, including the employee's final salary and annual leave payments. IRS refers any remaining balance to the Department of the Treasury, Financial Management Service for enforced collection.

1.35.13.8  (01-31-2012)
Waiver Request for Pay and Allowances

  1. Employees may submit a request to waive the collection of a debt, in whole or in part, arising out of erroneous payment of pay and allowances.

  2. The overpayment must be of such a nature that the employee would not normally have noticed it (for example, a nominal amount). Generally, waiver of an overpayment will not be approved if the employee received a significant unexplained increase in pay or otherwise knew, or reasonably should have known, that an erroneous payment occurred and did not inquire or bring the matter to the attention of management or an AWSS Employee Account Representative.

  3. For additional information about the waiver process, contact the Office of Payroll and Personnel Systems, AWSS, or visit the AWSS web site at: http://erc.web.irs.gov/.

1.35.13.8.1  (01-31-2012)
Documentation Requirements

  1. The debtor must provide documentation which supports the justification presented for the waiver request. The burden is on the debtor to demonstrate that collection of the debt would be against equity and good conscience.

  2. The debtor must include the following information for both the initial waiver request and any appeal:

    1. Debtor's Name.

    2. Debtor's SSN or SEID.

    3. Amount of the debt.

    4. Amount to be waived.

    5. Reason or justification for the waiver or appeal.

  3. For an erroneous payment of pay and allowances, this documentation must include, as appropriate:

    1. Timekeeping records.

    2. Statements of Earnings and Leave.

    3. Medical letter(s) from a doctor.

    4. Death certificate/obituary notice.

    5. Beneficiary documents.

    6. Any additional documentation to support the waiver request.

1.35.13.8.2  (01-31-2012)
Evaluation Criteria

  1. Every case is examined in light of its particular facts.

  2. Factors IRS considers when evaluating a waiver request related to an erroneous payment of pay and allowances include:

    1. Whether the employee should have known of the erroneous payment.

    2. Whether, because of the erroneous payment, the employee either has relinquished a valuable right or changed positions for the worse, regardless of the employee’s financial circumstances.

    3. The time elapsed between the erroneous payment, the discovery of the error, and notification of the employee.

    4. Whether the employee received a benefit and was unduly enriched. For example, the employee received health insurance coverage even if the IRS failed to withhold the premium amounts.

    5. Whether failure to make restitution would result in unfair gain to the employee.

  3. A request for a waiver will be denied if the deciding official determines there exists, in connection with the claim:

    1. A lack of supporting documentation to justify the waiver.

    2. An indication of fraud, misrepresentation, fault, or lack of good faith.

  4. If IRS determines there is no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee, the employee is not automatically entitled to a waiver. The IRS must further consider if the collection of the debt is against equity and good conscience and not in the best interests of the IRS.

1.35.13.8.3  (01-31-2012)
Waiver Request Submission Process

  1. A debtor, excluding Chief Counsel employees, may submit a written request for waiver from repayment of erroneous payments as follows:

    Pay and Allowances
    Current and Former Employees (Excluding Chief Counsel)
    Amount of Claim Address Waiver Request To: Send Waiver Request To:
    Less than $15,000 Director, Employee Support Services, Agency-Wide Shared Services (AWSS) Austin Payroll Center
    Internal Revenue Service
    3651 S. Interregional Highway
    Mail Stop 1550-AUSC
    Austin, TX 78741
    $15,000 or More Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury

  2. Current and former Chief Counsel employees may submit a written request for waiver from repayment of erroneous payments as follows:

    Pay and Allowances
    Current and Former Chief Counsel Employees
    Amount of Claim Address Waiver Request To: Send Waiver Request To:
    Less than $15,000 Associate Chief Counsel (Finance and Management) Associate Chief Counsel (Finance and Management)
    Internal Revenue Service, CC:FM:PF
    1111 Constitution Avenue NW
    Room 3042 IR
    ATTN: Financial Operations
    Washington, DC 20224
    $15,000 or More Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury

1.35.13.9  (01-31-2012)
Waiver Request for Travel, Transportation, Relocation Expenses and Allowances

  1. An employee may submit a request to waive the collection of a debt, in whole or in part, arising out of erroneous payment of travel, transportation, or relocation expenses or allowances.

  2. The Office of Financial Management Policy reviews each waiver request to ensure the employee provided all required documentation. If not, the Office of Financial Management Policy contacts the employee to request the additional information.

  3. The Office of Financial Management Policy recommends either granting or denying the waiver request based on statutory requirements and the employee's documentation. However, the final approval authority lies with the IRS or the Department of the Treasury, depending upon the dollar amount of the overpayment. The decision is based on the merits of each individual case, in accordance with established Federal regulations.

  4. For addition information about the waiver process, contact the Beckley Finance Center at:CFO.BFC.Debt.Collection.Helpdesk@irs.gov.

1.35.13.9.1  (01-31-2012)
Documentation Requirements

  1. The debtor must provide documentation which supports the justification presented for the waiver request. The burden is on the debtor to demonstrate that collection of the debt would be against equity and good conscience.

  2. The debtor must include the following information for both the initial waiver request and any appeal:

    1. Debtor's Name.

    2. Debtor's SSN or SEID.

    3. Amount of the debt.

    4. Amount to be waived.

    5. Reason or justification for the waiver or appeal.

  3. For an erroneous payment of travel, transportation, relocation expenses and allowances, this documentation must include:

    1. Receipts or vouchers.

    2. Any additional documentation to support the waiver request.

1.35.13.9.2  (01-31-2012)
Evaluation Criteria

  1. Every case is examined in light of its particular facts.

  2. Factors IRS considers when evaluating a waiver request of erroneous payment of travel, transportation, relocation expenses and allowances includes:

    1. Whether the employee should have known he was overpaid.

    2. Whether, because of the erroneous payment, the employee either has relinquished a valuable right or changed positions for the worse, regardless of the employee’s financial circumstances.

    3. The time elapsed between the erroneous payment, the discovery of the error, and notification of the employee.

    4. Whether failure to make restitution would result in unfair gain to the employee.

  3. A request for a waiver will be denied if the deciding official determines there exists, in connection with the claim:

    1. A lack of supporting documentation to justify the waiver.

    2. An indication of fraud, misrepresentation, fault, or lack of good faith.

  4. If IRS determines there is no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee, the employee is not automatically entitled to a waiver. The IRS must further consider if the collection of the debt is against equity and good conscience and not in the best interests of the IRS.

1.35.13.9.3  (01-31-2012)
Waiver Request Submission Process

  1. [Empty paragraph inserted to adjust the layout of the next table for review.]

  2. A debtor, including Chief Counsel employees, may submit a written request for waiver from repayment of erroneous payments as follows:

    Travel, Transportation, Relocation Expenses and Allowances
    Current and Former Employees (Including Chief Counsel)
    Amount of Claim Address Waiver Request To: Send Waiver Request To:
    Less than $7,500 Deputy Chief Financial Officer Beckley Finance Center
    Internal Revenue Service
    ATTN: Debt Collection Unit
    P.O. Box 9002
    Beckley, WV 25802
    $7,500 or More Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury

1.35.13.10  (01-31-2012)
Appeal Process for the Denial of Pay and Allowances, Travel, Transportation, Relocation Expenses and Allowances Waivers

  1. A debtor has the right to appeal the decision of a disapproved waiver request.

  2. If the IRS denies a waiver request, IRS will advise the debtor of the right to appeal the denial.

  3. During the appeal process, collection activity of the debt resumes:

    1. Beckley Finance Center initiates collection in accordance with the Debt Collection Improvement Act of 1996, when the Office of Financial Management and Policy notifies them of the decision.

    2. AWSS begins salary offset to recover erroneous pay and allowances two pay periods from the date the waiver is denied.

  4. A debtor is responsible for repayment of the debt until a final official decision. The debt includes all interest, penalty, and administrative costs that accrued during the waiver review process and the appeal process.

  5. The debtor must submit the appeal no later than 60 calendar days after notification of denial of the waiver.

  6. The debtor must include the following in the written appeal:

    1. Debtor's Name.

    2. Debtor's SSN or SEID.

    3. Amount of the debt.

    4. Amount of waiver denied.

    5. Reason or justification to appeal.

    6. Supporting documentation.

  7. A debtor, excluding Chief Counsel employees, may submit a written request appealing a disapproved waiver request for repayment of erroneous payments as follows:

    Pay and Allowances
    Current and Former Employees (Excluding Chief Counsel)
    Amount of Claim Address Appeal Request To: Send Appeal Request To:
    Less than $15,000 Director, Workforce Progression and Management (Human Capital Office) Austin Payroll Center/Appeals Processing
    Internal Revenue Service
    3651 S. Interregional Highway
    Mail Stop 1550-AUSC
    Austin, TX 78741
    $15,000 or More Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury

  8. Current and former Chief Counsel employees may submit a written request appealing a disapproved waiver request for repayment of erroneous payments as follows:

    Pay and Allowances
    Current and Former Chief Counsel Employees
    Amount of Claim Address Appeal Request To: Send Appeal Request To:
    Less than $15,000 Deputy Chief Counsel (Operations) Associate Chief Counsel (Finance and Management)
    Internal Revenue Service,
    CC:FM:PF
    1111 Constitution Avenue NW
    Room 3042 IR
    ATTN: Financial Operations
    Washington, DC 20224
    $15,000 or More Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury

  9. A debtor, including Chief Counsel employees, may submit a written request appealing a disapproved waiver request for repayment of erroneous payments as follows:

    Travel, Transportation, Relocation Expenses and Allowances
    Current and Former Employees (Including Chief Counsel)
    Amount of Claim Address Appeal Request To: Mail Appeal Request To:
    Any Dollar Amount Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury Beckley Finance Center
    Internal Revenue Service
    ATTN: Debt Collection Unit
    P.O. Box 9002
    Beckley, WV 25802

1.35.13.10.1  (01-31-2012)
Department of the Treasury

  1. The CFO, Chief Counsel, and AWSS send waiver requests and appeals above a specific dollar amount to the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury, for review and a decision to either approve or deny the waiver or the appeal. The decision is based on the merits of each individual case, in accordance with established Federal regulations.

1.35.13.11  (01-31-2012)
Waiver Requests for Tuition Assistance Program Payments

  1. The Tuition Assistance Program (TAP) is a Servicewide program providing funding to employees pursuing courses that support both career development and the mission of the IRS. IRS funds the cost of tuition, fees and books for approved participants.

  2. The employee is required to repay any tuition and related fees when:

    1. The employee does not complete the course satisfactorily.

    2. The employee voluntarily leaves the IRS before the agreed upon amount of service.

    3. The CFO does not grant a request for waiver for repayment of tuition and related fees.

  3. For additional information about TAP debts, refer to TAP Guide for Managers on the ERC website at: http://erc.web.irs.gov/Displayanswers/AnswerType.asp?QuestionID=2176&SubCategoryID=72&CategoryID=50&FolderID=3.

1.35.13.11.1  (01-31-2012)
Waiver Request

  1. In accordance with 5 USC Section 4108, IRS has the authority to waive the collection of an employee's training debt if IRS determines that enforcing the debt would be against equity and good conscience. A key measure of this is whether there were extenuating circumstances which prevented the employee from being able to fulfill the employee's responsibilities for the successful completion of a course.

  2. The following are examples of extenuating circumstances where the collection of a debt may be against equity and good conscience:

    1. Death of an immediate family member during the school term (such as parents, children or siblings).

    2. Ill health of an immediate family member where the employee was required to care for the family member during the term.

    3. Ill health of the employee over an extended period of time during the term. This does not include common illnesses such as a cold or the flu, but an illness that would incapacitate the employee for an extended period of time in which the employee could not make up the course work.

    4. Unanticipated work-related travel for an extended period of time during the school term.

  3. For additional information about the waiver process, contact the Beckley Finance Center at:CFO.BFC.Debt.Collection.Helpdesk@irs.gov.

1.35.13.11.2  (01-31-2012)
Documentation Requirements

  1. The employee must provide documentation which supports the justification presented for the waiver request. The burden is on the debtor to demonstrate that collection of the debt would be against equity and good conscience.

  2. The employee must include the following in the waiver request:

    1. Employee's Name.

    2. Employee's SSN or SEID.

    3. Amount of the debt.

    4. Amount to be waived.

    5. Reason or justification for the waiver or appeal.

  3. TAP documentation must include:

    1. A completed and signed "Request for Waiver Reimbursement for Tuition Assistance Program." The employee's manager must sign and date the request and indicate the manager's concurrence or non-concurrence with the waiver request.

    2. A course syllabus.

    3. A copy of the school's withdrawal and refund policy.

    4. Documentation supporting the extenuating circumstances being cited by the employee. Depending upon the circumstances, this may include death certificates, obituary notices, medical information, and/or copies of SETR reports showing leave taken during the period in question. If the extenuating circumstances involve a medical condition, the employee does not need to submit clinical medical details, but does need to submit information from a medical professional indicating any limitations on the employee's working conditions and the relevant time period. If it involves a relative, the employee needs to submit a medical statement indicating the nature of the support the employee must provide and the relevant time period.

    5. Any additional information the employee believes is relevant and supports the waiver request.

1.35.13.11.3  (01-31-2012)
Evaluation Criteria

  1. Every case is examined in light of its particular facts.

  2. Factors IRS considers when evaluating a TAP waiver request include:

    1. Whether the situation meets the examples of extenuating circumstances cited in IRM 1.35.13.11.1, Waiver Request.

    2. Whether the employee could have foreseen or anticipated the situation.

    3. Whether the employee acted to mitigate the loss to the IRS such as a timely withdrawal from the course and a corresponding tuition refund.

    4. Whether the situation occurred during the term.

    5. Whether failure to make restitution would result in unfair gain to the employee.

  3. A request for a waiver will be denied if the deciding official determines there exists, in connection with the claim:

    1. A lack of supporting documentation to justify the waiver.

    2. An indication of fraud, misrepresentation, fault, or lack of good faith.

1.35.13.11.4  (01-31-2012)
Waiver Request Submission Process

  1. A debtor may submit a written request for waiver from repayment of funds received as follows:

    Tuition Assistance Program
    Amount of Claim Address Waiver Request To: Send Waiver Request To:
    Any Dollar Amount Chief Financial Officer Beckley Finance Center
    Internal Revenue Service
    ATTN: Debt Collection Unit-TAP
    P.O. Box 9002
    Beckley, WV 25802

1.35.13.11.5  (01-31-2012)
Appeal Process for the Denial of TAP Waivers

  1. IRS does not accept an appeal when a TAP waiver request is denied.


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