1.35.13 Administrative Waiver

Manual Transmittal

March 29, 2016

Purpose

(1) This transmits revised Internal Revenue Manual 1.35.13, Financial Accounting, Administrative Waiver.

Material Changes

(1) IRM 1.35.13.1, Overview, revised to include waiving claims against the estates of former employees.

(2) IRM 1.35.13.2, Background, revisions were made as follows:

  1. Deleted references to the Federal Claims Collection Act of 1966, the Debt Collection Act of 1982, the Debt Collection Improvement Act of 1996, and the Federal Claims Collections Standards. These statutes and regulations focus on debt collection and management and not on waiver of claims.

  2. Added a reference to Title 31, United States Code (USC), Section 3711, Collections and compromise.

  3. Corrected the criteria for waiving a training related debt under Title 5, USC, Section 4108 from, "collection would be against equity and good conscience and not in the best interest of the United States" to "collection would be against equity and good conscience or against the public interest" .

(3) IRM 1.35.13.3, Authorities, revisions were made as follows:

  1. Deleted references to authorities which focus on debt collection and management rather than waiver of claims.

  2. Added a reference to 26 USC 6050P, Returns relating to cancellation of indebtedness by certain entities.

  3. Added a reference to Title 31, USC, Section 3711,Collections and compromise.

  4. Added a reference to Title 31, USC, Section 3717, Interest and penalty on claims.

  5. Added a reference to IRM 6.410.1, Learning and Education Policy, which is relevant to the Tuition Assistance Program.

(4) IRM 1.35.13.4, Related Resources, deleted because the resources listed focus on debt collection and management rather than waiver of claims.

(5) IRM 1.35.13.5, Definitions, renumbered as IRM 1.35.13.4. Revised definitions for "debt collection" , "debtor" , "delinquent" , "penalty" ," restitution" , "salary offset" , "waiver" , and "waiver request" .

(6) IRM 1.35.13.6, Responsibilities, renumbered as IRM 1.35.13.5. Other revisions made are as follows:

  1. Changed the titles of some offices.

  2. Added a section describing the responsibilities of the Chief, Austin Payroll Center.

(7) IRM 1.35.13.6.1, Employees, renumbered as IRM 1.35.13.5.1, and clarified the employee's responsibilities.

(8) IRM 1.35.13.6.2, Managers/Supervisors, moved to IRM 1.35.5.13.11.2(3) because this topic relates only to requests for waivers of debts related to the Tuition Assistance Program (TAP).

(9) IRM 1.35.13.6.3, Chief Financial Officer, renumbered as IRM 1.35.13.5.3, and updated for clarity.

(10) IRM 1.35.13.6.6, Director, Financial Management Policy Office, renumbered as IRM 1.35.13.5.6, and updated for clarity.

(11) IRM 1.35.6.7, Director, Beckley Finance Center, renumbered as IRM 1.35.13.5.7, and updated for clarity.

(12) IRM 1.35.13.7, General Waiver Requirements and Considerations, renumbered as IRM 1.35.13.6, and updated and clarified.

(13) IRM 1.35.13.8, Waiver Request for Pay and Allowances, renumbered as IRM 1.35.13.7, and updated and clarified.

(14) IRM 1.35.13.9, Waiver Requests for Travel, Transportation, Relocation Expenses and Allowances, renumbered as IRM 1.35.13.8, and updated for clarity.

(15) IRM 1.35.13.11, Waiver Request for Tuition Assistance Program, renumbered as IRM 1.35.13.10, and updated and clarified.

(16) Added Section 1.35.13.10.6, Employee's Right to Withdraw a Request without Prejudice.

Effect on Other Documents

This supersedes IRM 1.35.13, dated January 31, 2012.

Audience

All Divisions and Functions.

Effective Date

(03-29-2016)

Ursula S. Gillis
Chief Financial Officer

Overview

  1. This Internal Revenue Manual (IRM) provides policies and procedures for waiving certain types of claims against current and former IRS employees, and their estates.

  2. These provisions apply to all current or former IRS employees who owe certain types of non-tax debts to the IRS. They also apply to the estates of former employees that owe certain types of non-tax debts to the IRS. The types of debts covered by these provisions include those that relate to:

    1. Overpayments of pay and allowances, or overpayments of travel, transportation, and relocation expenses and allowances; or

    2. An employee's not completing satisfactorily a course funded by the IRS Tuition Assistance Program (TAP).

  3. Although entities contracting with the IRS and entities that damage IRS property may owe non-tax debts to the IRS due to either their actions or inactions, the waiver authorities discussed in this IRM do not apply to such entities.

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

Background

  1. Title 31, United States Code (USC), Section 3711, Collection and compromise, requires agencies to try collecting claims of the United States Government for money or property arising out of the agency's activities giving rise to such claims.

  2. Title 5, USC, Section 5584, Claims for overpayment of pay and allowances, and of travel, transportation, and relocation expenses and allowances, allows agencies to waive, either in whole or in part, debts arising out of an erroneous payment of pay and allowances or an erroneous payment of travel, transportation or relocation expenses and allowances if the collection of such debt would be against equity and good conscience and not in the best interest of the United States.

  3. Title 5, USC, Section 4108, Employee agreements: service after training, allows agencies to waive, either in whole or in part, training debts if it is shown that the collection of such debt would be against equity and good conscience or against the public interest. At the IRS, most training debts arise from an employee's not fulfilling the terms agreed to for participating in the Tuition Assistance Program (TAP).

  4. Treasury Directive 34-01, Waiving Claims Against Treasury Employees for Erroneous Payments, in paragraph 3(a), states that a waiver request must be denied if the deciding official determines there exists, in connection with the debt, an indication of fraud, misrepresentation, fault, or lack of good faith by the employee or any other person having an interest in obtaining a waiver of the debt. The directive also provides guidance on the factors related to equity and good conscience. This statement in paragraph 3(a) of the directive also appears at Title 5, USC, Section 5584(b)(1).

Authorities

  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. 26 USC, Section 6050P, Returns relating to cancellation of indebtedness by certain entities.

    4. 31 USC, Section 3711, Collections and compromise.

    5. 31 USC, Section 3717, Interest and penalty on claims.

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

    7. 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

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

    9. IRM 6.410.1, Learning and Education Policy.

Definitions

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

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

    2. Appeal - An administrative or judicial proceeding in which the debtor requests a higher level official to determine if a waiver is warranted.

    3. Debt - An amount of money, funds, or property that has been determined by an agency official to be due to the United States from any person, organization, or entity, except another Federal agency.

    4. Debt Collection -- The recovery of non-tax debts owed to the IRS.

    5. Debtor - A person, organization, or entity, except another Federal agency, that owes an amount of money, funds, or property 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.

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

    8. Overpayment - Any payment paid to an employee that is in excess of the amount owed to the employee.

    9. Penalty - A punitive charge assessed on a delinquent debt. The rate is not to exceed six percent per year and is assessed on the portion of the debt remaining delinquent more than 90 days (Title 31, USC, Section 3717(e)(2)).

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

    11. Restitution - Payment by a party causing a loss, damage, or injury to the injured party in order to restore the injured party to the status existing before suffering the loss, damage, or injury.

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

    13. Waiver - In accordance with an appropriate statute, the cancellation, remission, forgiveness or non-recovery of a non-tax debt owed by a debtor to an agency, and done generally as a result of the debtor's request.

    14. Waiver Request - A petition seeking relief from paying a debt.

Responsibilities

  1. This section provides responsibilities for:

    1. Employees.

    2. Chief Financial Officer.

    3. Deputy Chief Financial Officer.

    4. Associate Chief Financial Officer for Financial Management.

    5. Director, Financial Management Policy Office.

    6. Director, Beckley Finance Center.

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

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

    9. Chief, Austin Payroll Center, Agency-Wide Shared Services.

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

    11. Associate Chief Counsel (Financial Management).

    12. Deputy Chief Counsel (Operations).

Employees

  1. Employees, if desiring relief, are responsible for:

    1. Submitting a written request for waiver which states a justification for granting relief.

    2. Attaching to the request supporting documentation.

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

Chief Financial Officer

  1. The Chief Financial Officer is responsible for:

    1. Overseeing the procedures for receiving and evaluating waiver requests related to erroneous payments of travel, transportation, and relocation expenses and allowances.

    2. Approving or denying requests for waivers of debt related to the Tuition Assistance Program (TAP).

    3. Forwarding to the Deputy Commissioner for Operations Support those waiver requests destined for review by the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury, when the pertinent debt is equal to or greater than $7,500 and results from an erroneous payment of travel, transportation, and relocation expenses or allowances.

    4. Forwarding to the Deputy Commissioner for Operations Support appeals of denied waiver requests destined for review by the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury, when the pertinent debt results from an erroneous payment of travel, transportation, and relocation expenses or allowances.

Deputy Chief Financial Officer

  1. The Deputy Chief Financial Officer is responsible for:

    1. Approving or denying requests for waivers of claims that are less than $7,500 for erroneous payments of travel, transportation, and relocation expenses and allowances.

    2. Forwarding to the Chief Financial Officer those waiver requests destined for review by the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury, when the pertinent debt is equal to or greater than $7,500 and results from an erroneous payment of travel, transportation, and relocation expenses or allowances.

    3. Forwarding to the Chief Financial Officer appeals of denied waiver requests destined for review by the DASHR/CHCO, Department of the Treasury, when the pertinent debt results from an erroneous payment of travel, transportation, and relocation expenses or allowances.

Associate Chief Financial Officer for Financial Management

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

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

    2. Forwarding to the Deputy Chief Financial Officer those waiver requests destined for review by the DASHR/CHCO, Department of the Treasury, when the pertinent debt is equal to or greater than $7,500 and results from an erroneous payment of travel, transportation, and relocation expenses or allowances.

    3. Forwarding to the Deputy Chief Financial Officer appeals of denied waiver requests destined for review by the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury, when the pertinent debt results from an erroneous payment of travel, transportation, and relocation expenses or allowances.

Director, Financial Management Policy Office

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

    1. Establishing procedures for processing waiver requests by current or former employees and their estates.

    2. Obtaining all relevant facts and supporting documentation that will enable the decision maker to reach a just and equitable decision, and including this documentation in the case folder that is submitted with the employee's request.

    3. Evaluating the merits of waiver requests and drafting a recommended action, and including the memorandum in the case folder.

    4. Forwarding to the Associate Chief Financial Officer for Financial Management those waiver requests destined for review by the DASHR/CHCO, Department of the Treasury, when the pertinent debt is equal to or greater than $7,500 and results from an erroneous payment of travel, transportation, and relocation expenses or allowances.

    5. Forwarding to the Associate Chief Financial Officer for Financial Management appeals of denied waiver requests destined for review by the DASHR/CHCO, Department of the Treasury, when the pertinent debt results from an erroneous payment of travel, transportation, and relocation expenses or allowances.

Director, Beckley Finance Center

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

    1. Promptly notifying an employee upon discovery of an erroneous payment of a travel or relocation expense paid to that employee and promptly acting to collect the erroneous overpayment by following the established policies and procedures for debt collection. A failure to promptly notify an employee upon discovery of an erroneous payment, followed by a belated attempt to collect it, could result in an inequity and also a violation of good conscience. This, in turn, could require waiving the debt and a loss of money to the IRS.

    2. Receiving waiver requests for travel, relocation, and training-related debts and forwarding such requests to the Director, Financial Management Policy.

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

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 of claims less than $15,000 for erroneous payments of pay and allowances.

    2. Submitting to the DASHR/CHCO, Department of the Treasury, requests for waivers of claims that are $15,000 or greater for erroneous payments of pay and allowances.

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

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

    5. Providing information to the National Finance Center, for issuance of Form 1099-C, Cancellation of Debt, when applicable.

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 debts related to erroneous payments of pay and allowances.

Chief, Austin Payroll Center, Agency-Wide Shared Services

  1. The Chief, Austin Payroll Center, is responsible for:

    1. Promptly notifying an employee upon discovery of an erroneous payment of pay and allowances to that employee and promptly acting to collect the erroneous overpayment following established debt collection policies and procedures.

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 a claim that is less than $15,000 for erroneous payments of pay and allowances.

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 when the claim is less than $15,000 for erroneous payments of pay and allowances.

    2. Submitting to the DASHR/CHCO, Department of the Treasury, requests for waivers of claims $15,000 or greater for erroneous payments of pay and allowances.

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

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

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 a claim that is less than $15,000 for erroneous payments of pay and allowances.

General Waiver Requirements and Considerations

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

    1. An erroneous payment of pay and allowances, or

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

    3. An employee's non-compliance with the terms of a relocation service agreement, or

    4. An employee's non-compliance with the terms of a training service agreement where the IRS demands repayment of the training costs the IRS spent on the employee's behalf.

  2. 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. For example, the reimbursement of airport parking expenses in excess of the amount allowed under the Federal Travel Regulation and the underwithholding of health insurance premiums are situations in which the employee should have known an error existed.

  3. 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 and the employee was so informed via a demand letter sent to the employee in accordance with established procedures.

  4. The employee must provide a written justification along with supporting documentation.

  5. With regard to debts arising from erroneous payments, the employee must demonstrate that enforcement of the debt would be against equity and good conscience and not in the best interest of the United States.

  6. With regard to training debts, the employee must demonstrate that enforcement of the debt would be against equity and good conscience or against the public interest.

  7. 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.

  8. If either the IRS or Treasury's DASHR/CHCO approves a waiver request:

    1. The waiver is effective on the date the debt arose. This has the effect of negating accumulated interest, administrative fees, and penalties.

    2. IRS refunds amounts already paid by the debtor (up to the amount of debt waived). Should only a portion of the debt be waived, the amount of accumulated interest, administrative fees and penalties negated will equal that portion of the total amount of accumulated interest, administrative fees, and penalties as does the portion of the debt waived bear to the total original debt.

    3. IRS reports the amount of debt discharged on Form 1099-C, Cancellation of Debt, if such amount is $600 or more.

  9. If either the IRS or Treasury's DASHR/CHCO 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 the decision. See IRM 1.35.13.9, Appealing the Denial of Waiver Requests for Pay and Allowances, Travel, Transportation, Relocation Expenses and Allowances.

    2. Suspension of the debt collection effort continues during the appeal process. Should the official evaluating the appeal sustain the denial of the waiver, the IRS either initiates or resumes collection of the debt amount, including interest, administrative fees, and penalties that accrued during the waiver review process.

  10. If an employee with a pending waiver request leaves the IRS, then IRS enforces collection of the remaining debt balance by a 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, Bureau of the Fiscal Service, for enforced collection. Should the waiver be granted after the debtor left the IRS, the debtor will be refunded all amounts paid on the debt (up to the amount of debt waived). Should only a portion of the debt be waived, the amount of accumulated interest, administrative fees and penalties negated will equal that portion of the total amount of accumulated interest, administrative fees, and penalties as does the portion of the debt waived bear to the total original debt.

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. Should the employee submit a request to waive an amount that is less than the government's claim, the request will be decided at the managerial level based on the dollar threshold associated with the lower amount for which relief is sought.

  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 for pay and allowances, contact the Office of Payroll and Personnel Systems, AWSS, or visit the AWSS web site at: http://erc.web.irs.gov/.

Documentation Requirements

  1. 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.

  2. 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 should the petitioner be an estate.

    5. Any additional documentation to support the waiver request.

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.

    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. An example would be if the employee received health insurance coverage even if the IRS failed to withhold the premium amounts, and the employee either knew such insurance coverage was in force or should have known that such insurance coverage was in force.

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

  3. The IRS will waive the debt if it determines that:

    1. There is no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee; and

    2. Enforcement of the debt would be against equity and good conscience, and

    3. Enforcement of the debt would not be in the best interest of the United States.

Waiver Request Submission Process

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

    Pay and Allowances
    Current Employees, Former Employees and Their Estates (Excluding Chief Counsel Employees and the Estates for Those Who Worked for the 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 Chief Counsel Employees, Former Chief Counsel Employees and the Estates for Those Who Worked For the Chief Counsel
    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
  3. The dollar amount of a claim due to an erroneous overpayment of pay and allowances is the sum of the overpayment related to the overpayment of pay and the overpayment of the allowances.

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. Should the employee submit a request to waive an amount that is less than the government's claim, the request will be decided at the managerial level based on the dollar threshold associated with the lower amount for which relief is sought.

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

  3. The Financial Management Policy Office recommends either granting or denying the waiver request based on the employee's documentation. However, the final approval authority lies with either the Deputy Chief Financial Officer 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.

  4. For addition information about the waiver process for travel, transportation, or relocation expenses and allowances, contact the Beckley Finance Center at:CFO.BFC.Debt.Collection.Helpdesk@irs.gov.

Documentation Requirements

  1. The debtor must provide documentation which supports the justification presented for the waiver request.

  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 that supports the waiver request.

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 include:

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

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

    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. The IRS will waive the debt if it determines that:

    1. There is no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee; and

    2. Enforcement of the debt would be against equity and good conscience, and

    3. Enforcement of the debt would not be in the best interest of the United States.

Waiver Request Submission Process

  1. A debtor, including Chief Counsel employees, may submit a written request for waiver from repayment of erroneous payments (relating to travel, transportation, or relocation expenses or allowances) as follows:

    Travel, Transportation, Relocation Expenses and Allowances
    Current Employees, Former Employees and Their Estates (Including the Estates of Those Who Worked for the 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
  2. The amount of a claim due to an erroneous overpayment of travel, transportation, and relocation expenses or allowances is the sum of the claims related to:

    1. The overpayment of travel expenses and allowances;

    2. The overpayment of transporation expenses and allowances; and

    3. The overpayment of relocation expenses and allowances.

Appealing the Denial of Waiver Requests for Pay and Allowances, Travel, Transportation, Relocation Expenses and Allowances

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

  2. If either the IRS or the Department of the Treasury denies a waiver request, the office denying the request will advise the debtor of the right to appeal the denial.

  3. Suspension of debt collection action continues during the appeal process. Should the official evaluating the appeal sustain the denial of the waiver, the IRS either initiates or resumes collection of the debt amount, including all accrued interest, administrative fees, and penalities.

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

  5. 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. A reason why the debtor believes the denial of the waiver request was unjust.

    6. Supporting documentation.

  6. 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 Employees, Former Employees and Their Estates (Excluding the Estates of Those Who Worked for the 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
  7. 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 Chief Counsel Employees, Former Chief Counsel Employees and the Estates for Those Who Worked for the Chief Counsel
    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
  8. A debtor, including Chief Counsel employees, may submit a written request appealing a disapproved waiver request for repayment of erroneous payments (relating to travel, transportation, or relocation expenses or allowances) as follows:

    Travel, Transportation, Relocation Expenses and Allowances
    Current Employees, Former Employees and Their Estates (Including the Estates for Those Who Worked for the 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

Department of the Treasury Role in Reviewing Waiver Requests and Appeals

  1. Waiver requests and appeals of denied waiver requests for which the claim is above a specific dollar amount are sent 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.

Tuition Assistance Program

  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 the employee does not complete the course satisfactorily.

  3. IRM 6.410.1.1.15.2, SF-182 Process, states that" if the employee voluntarily leaves the government before the agreed upon (length) of service, IRS has the right to require repayment for the tuition and related fees, travel and other incidental expenses (excluding salary) incurred in connection with the training."

Waiver Requests Related to the Tuition Assistance Program

  1. In accordance with Title 5 USC Section 4108, Employee agreements: service after training, 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 or against the public interest. 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, spouse, children or siblings).

    2. Ill health of, or a serious injury to, 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 academic term or a serious injury that incapacitates the employee over an extended period of time during the academic term.

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

Documentation Requirements

  1. The employee must provide documentation which supports the justification presented for the waiver request.

  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.

  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 shall not submit clinical medical details, but shall 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.

Evaluation Criteria

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

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

    1. Whether the situation presents meritorious extenuating circumstances.

    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 obtaining a corresponding tuition refund.

    4. Whether the situation occurred during the academic term.

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

  3. The IRS will waive the debt if it determines that there is:

    1. No indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee; and

    2. If either one of the two situations described below prevails:

    1. Enforcement of the debt would be against equity and good conscience, or

    2. Enforcement of the debt would not be in the public interest.

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

Denials of Tuition Assistance Program Waiver Requests Are Not Appealable

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

Employee's Right to Withdraw a Request without Prejudice

  1. An employee has the right to withdraw a TAP waiver request at any time prior to a decision. A withdrawal of a TAP waiver request does not prohibit the employee from resubmitting the wavier request at a later time. The employee may want to consider this option should the school give the employee more time to complete the TAP-funded course.

  2. Should a TAP waiver request be withdrawn, collection effort on the debt will either be initiated or resumed.