1.35.13 Administrative Waiver

Manual Transmittal

February 03, 2020

Purpose

(1) This transmits revised IRM 1.35.13, Financial Accounting, Administrative Waiver.

Material Changes

(1) IRM 1.35.13.1, Program Scope and Objectives, was added to conform to the new internal control requirements described in 1.11.2, Internal Revenue Manual Process. Also, rearranged existing IRM content to place information pertaining to internal controls under this new subsection.

(2) IRM 1.35.13.1.1 Background authority references moved to IRM 1.35.13.1.2 Authorities.

(3) IRM 1.35.13.1.2, Authorities, added the following authorities:

  1. Title 31, Code of Federal Regulations (CFR), Section 901.9, Interest, penalties and administrative costs

  2. Treasury Directive Publication 34-01, Waiving Claims Against Treasury Employees

  3. Delegation Order 1-61, Authority to Waive Training Debts

  4. The Administrative Procedures Act of 1946, P. L. 79-404

  5. Title 31, Code of Federal Regulations (CFR), Section 901.9(h)

(4) IRM 1.35.13.1.3.2, CFO and deputy CFO, combined CFO and deputy CFO responsibilities.

(5) Previous IRM 1.35.13.5.5, Director, Financial Management Policy responsibilities moved to IRM 1.35.13.1.3.4, Director, Travel Management.

(6) Previous IRM 1.35.13.5.6, Director, Beckley Finance Center responsibilities moved to IRM 1.35.13.1.3.5, Director, Government Payable & Funds Management (GP&FM).

(7) Previous IRM 1.35.13.5.7, Director, Employee Support Services, Agency-Wide Shared Services responsibilities moved to IRM 1.35.13.1.3.6, Director, Payroll & Personnel Systems, HCO.

(8) IRM 1.35.13.1.3.4, Director, Travel Management, updated responsibilities.

(9) IRM 1.35.13.1.3.5, Government Payables & Funds Management, added new section.

(10) IRM 1.35.13.1.3.8, Chief, Austin Payroll Center, updated responsibilities.

(11) IRM 1.35.13.1.3.9, Associate Chief Counsel (Finance & Management), updated responsibilities.

(12) IRM 1.35.13.1.4, Program Management and Review section added.

(13) IRM 1.35.13.1.6, Terms/Definitions, added definition for deciding official.

(14) IRM 1.35.13.1.7, Acronyms section added.

(15) IRM 1.35.13.1.8, Related Resource section added.

(16) IRM 1.35.13.2, General Waiver Requirements, updated for clarity.

(17) Previous IRM 1.35.13.7.1, Documentation Requirements, deleted and information combined with IRM 1.35.13.2, General Waiver Requirements.

(18) IRM 1.35.13.2.1, Evaluation Criteria, updated for clarity.

(19) IRM 1.35.13.2.2, Wavier Approvals and Denials section added.

(20) IRM 1.35.13.4.3(1), Waiver Request Submission Requirement, moved to IRM 1.35.13.3, Waiver Request for Pay and Allowances; IRM 1.35.13.4, Waiver Request for Travel, Transportation, Relocation Expenses and Allowances and IRM 1.35.13.7, Training Debts to reflect current process of each program.

(21) Previous IRM 1.35.13.10, Tuition Assistance Program section deleted.

(22) IRM 1.35.13.5(5)(b), Appealing the Denial of Waiver Requests for Pay and Allowances, Travel, Transportation, Relocation Expenses and Allowances, updated.

(23) IRM 1.35.13.6, Treasury Reporting Requirements section added.

(24) IRM 1.35.13.7, Training Debts, updated to reflect current process.

Effect on Other Documents

IRM 1.35.13, dated March 29, 2016, is superseded.

Audience

All business units

Effective Date

(02-03-2020)

Ursula S. Gillis
Chief Financial Officer

Program Scope and Objectives

  1. Purpose: To provide policy and guidance for filing a waiver for a non-tax debt owed to the IRS.

  2. Audience: All IRS employees, former employees, personal administrators for estates of former IRS employees and IRS personnel that manage the administrative waiver program.

  3. Policy Owner: The CFO owns the policies herein.

  4. Program Owners: CFO Government Payables and Funds Management (GP&FM) office and the Human Capital Office (HCO).

  5. Primary Stakeholders: The CFO, Chief Counsel and the HCO.

  6. Program Goals: To ensure that non-tax debts waiver and appeal requests are resolved equitably and timely.

Background

  1. This IRM provides guidance for waiving non-tax debts against current and former IRS employees and their estates.

  2. The types of debts include:

    1. Debts resulting from erroneous payments of pay and allowances, travel, transportation and/or relocation expenses and allowances

    2. Debts resulting from an employee or former employee’s breach of an agreement for the government-funded training

    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 under these circumstances.

Authorities

  1. The authorities for this IRM include:

    1. 5 United States Code (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 the 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. 31 Code of Federal Regulations, Section 901.9, Interest, penalties and administrative costs

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

    8. Delegation Order 1-15, Waiving Claims Against Current or Former Employees for Erroneous Payments, referenced in IRM 1.2.2.2.13, Servicewide Policies and Authorities, Servicewide Delegations of authority

    9. Delegation Order 1-61, Authority to Waive Training Debts, in IRM 1.2.2.2.46, Servicewide Policies and Authorities, Servicewide Delegations of Authority

    10. Memorandum to IRS Commissioner from Deputy Assistant Secretary for Human Resources (DASHR) and CFO, Department of the Treasury, Delegation of Limited Waiver and Appeal Authority for Employee Salary Overpayments, dated March 17, 2009

    11. IRM 6.410.1, Learning and Education Policy

    12. Administrative Procedures Act of 1946, P. L. 79-404, 60 Stat. 237, 5 USC Section 500 et. seq.

Responsibilities

  1. This section provides responsibilities for:

    1. Debtors seeking relief from a non-tax debt owed to the IRS

    2. CFO and deputy CFO

    3. Associate CFO (ACFO) for Financial Management (FM) and deputy Associate CFO (deputy ACFO) for Administrative FM

    4. Director, Travel Management

    5. Director, Government Payables and Funds Management (GP&FM)

    6. Director, Payroll and Personnel Systems, HCO

    7. Director, Worklife, Benefits and Performance, HCO

    8. Chief, Austin Payroll Center

    9. Associate Chief Counsel (Finance & Management)

    10. Deputy Chief Counsel (Operations)

Debtors Seeking Relief
  1. Debtors, if desiring relief, are responsible for:

    1. Submitting a written request for a waiver stating a justification for granting relief.

    2. Attaching supporting documentation to the request.

    3. Responding to requests for additional or supplemental information.

CFO and Deputy CFO
  1. The CFO and deputy CFO are responsible for:

    1. Overseeing the administrative waiver program.

    2. Approving requests for waiver of claims less than $7,500 for erroneous payments of travel, transportation and relocation expenses and allowances.

    3. Certifying and submitting to the Deputy Commissioner for Operations Support (DCOS), all waiver request packages for review by the Deputy Assistant Secretary for Human Resources/Chief Human Capital Officer (DASHR/CHCO), Department of the Treasury, where the debt is equal to or more than $7,500 and the result of erroneous payment of travel, transportation and relocation expenses or allowances.

    4. Preparing and submitting to the DCOS, the appeals of denied waiver requests for review by the DASHR/CHCO, Department of the Treasury, when the debt results from erroneous travel, transportation and relocation expenses or allowances of less than $7,500.

  2. The CFO is solely responsible for:

    1. Approving or denying requests for relief of employee or former employee debts that arise out of a breach of a government-funded training agreement.

ACFO for Financial Management (FM) and Deputy ACFO for Administrative FM
  1. The ACFO for FM and deputy ACFO for Administrative FM are responsible for:

    1. Submitting to the CFO/deputy CFO (DCFO) requests for waiver of claims less than $7,500 for overpayments of travel, transportation and relocation expenses or allowances and requests for waiver of government-funded training debts.

    2. Forwarding to the CFO/DCFO, appeals of denied waiver requests for review by the DASHR/CHCO, Department of the Treasury, when the debt results from an erroneous payment of travel, transportation or relocation expenses or allowances.

Director, Travel Management
  1. The director, Travel Management, is responsible for:

    1. Obtaining and validating supporting documentation, drafts of recommended actions, reports, files and registers, including the case folder memorandum, necessary for the deciding official to evaluate the waiver request.

    2. Forwarding appeals of denied waiver requests for review by the DASHR/CHCO, Department of the Treasury, to the ACFO for FM or deputy ACFO for Administrative FM.

    3. Providing quarterly reports on the status of pending requests submitted by IRS employees and former employees seeking relief from debts to the ACFO for FM and deputy ACFO for Administrative FM.

    4. Submitting a copy of the subsidiary register to the director, GP&FM annually.

Director, Government Payables and Funds Management
  1. The director, GP&FM, is responsible for:

    1. Notifying current and former employees of erroneous payments.

    2. Managing procedures for processing waiver requests by current or former employees and their estates.

    3. Processing results of waiver request decisions.

    4. Issuing Form 1099-C, Cancellation of Debt.

    5. Consolidating and reporting the Treasury-mandated Servicewide register of waiver of activity.

Director, Payroll and Personnel Systems, HCO
  1. The director, Payroll and Personnel Systems, HCO, is responsible for (excluding Chief Counsel employees):

    1. Approving requests for waiver of claims less than $15,000 for erroneous payments of pay and allowances.

    2. Preparing packages for waiver claims of $15,000 and greater for DCOS submission to the DASHR/CHCO, Department of the Treasury.

    3. Preparing appeal request packages for the director, Worklife, Benefits and Performance, HCO, when a waiver request for a claim for erroneous payments of pay and allowances that is less than $15,000 is denied.

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

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

Director, Worklife, Benefits and Performance, HCO
  1. The director, Worklife, Benefits and Performance, HCO, is responsible for adjudicating requests for an appeal when a waiver request is denied for a claim that is less than $15,000 for erroneous payments of pay and allowances.

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

    1. Notifying an employee upon discovery of an erroneous payment of pay and allowances and following established collection policies and procedures.

    2. Preparing quarterly status reports of pending requests submitted by IRS employees seeking relief from debts for erroneous payments of pay and allowances.

    3. Maintaining a subsidiary register of waiver activity involving IRS employees and pertaining to debts for erroneous payments of pay and allowances.

    4. Submitting a copy of the subsidiary register to the director, GP&FM annually.

    5. Overseeing payroll offsets.

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

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

    2. Preparing waiver request packages for the deputy Chief Counsel (Operations) for submission to the DASHR/CHCO, Department of the Treasury, for waivers of claims $15,000 or greater and appeals when a waiver request is denied for a claim of $15,000 or greater.

    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.

    4. Preparing quarterly reports and maintaining subsidiary registers on the status of pending requests and waiver activity of Chief Counsel employees seeking relief from debts.

    5. Submitting a copy of the subsidiary register to the director, GP&FM annually.

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.

Program Management and Review

  1. Program reports: Officials will use activity and status reports to evaluate the effectiveness of how the administrative waiver program is managed.

    1. Waiver status reports reflect the status of waiver requests and includes the total number and dollar amount of pending, denied and approved waiver requests.

    2. A Treasury-mandated register of waiver activity that includes the number of waiver requests received and resolved, the dollar amount of the requests granted and other information. See IRM 1.35.13.3, Waiver Request for Pay and Allowances, for additional detail.

  2. Program Effectiveness: The IRS has implemented effective collection reports which ensure all statutory and regulatory requirements are met. The reports substantiate that waiver requests and decisions are executed within established time frames as outlined in the debt letter. See IRM 1.35.13.1.5, Program Controls and IRM 1.35.13.6, Treasury Reporting Requirements for additional information.

    1. Waiver status reports are prepared quarterly and provided to the ACFO for FM and deputy ACFO for Administrative FM for review.

    2. The Treasury-mandated register of waiver activity is prepared annually by no later than October 15 for the preceding fiscal year.

    3. The responsible office will provide written notice of final action to the requester within 60 days of the receipt of the request. A memorandum is issued and forwarded to GP&FM. GP&FM will follow up with the deciding official for any delays over 60 days.

Program Controls

  1. The following table shows the control and the control methods:

    Control Control Methods
    Case Reviews/Validations
    All cases are reviewed for signatures and supporting documentation to ensure completeness of the waiver request.

    All debt waiver request statuses are regularly reviewed to ensure execution within timeframes outlined in the debt letter.

    Complex cases and waiver requests seeking relief for amounts of $7,500 or greater involve consultation with GLS to ensure compliance with regulatory requirements.
    Documentation/Record Retention The IRS maintains files on all waiver actions for deciding officials to refer to prior to decisions and a register of all waiver activity, along with the pertinent details of all waiver requests, for a period of 6 years and 3 months. This retention period can facilitate a petitioner’s request for a judicial review in a U.S. Federal Court.

Terms/Definitions

  1. The following terms and definitions apply to this program:

    1. Administrative debt - A non-tax debt resulting from administrative actions.

    2. Appeal - An administrative proceeding in which the responsible party requests an independent review of the debt.

    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. Deciding official - An individual who has authority to determine whether a requested waiver may be provided.

    7. Delinquent - A debt status signifying that the amount owed was not paid by the date of the IRS initial billing notice unless other satisfactory payment arrangements have been made.

    8. Erroneous payment - An incorrect payment, usually arising as the result of an administrative processing error.

    9. Overpayment - Any payment to an employee that is more than the amount owed to the employee.

    10. 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)).

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

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

    13. 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.

    14. 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, generally at the debtor's request.

    15. Waiver request - A petition seeking relief from paying a debt.

Acronyms

  1. The following acronyms apply to this program:

    ACRONYM DESCRIPTION
    ACFO Associate Chief Financial Officer
    CFR Code of Federal Regulations
    CHCO Chief Human Capital Officer
    DASHR Deputy Assistant Secretary for Human Resources
    DCFO Deputy Chief Financial Officer
    DCOS Deputy Commissioner for Operations Support
    FM Financial Management
    GLS General Legal Services (Chief Counsel)
    GP&FM Government Payables and Funds Management
    USC United States Code

Related Resources

  1. Related resources include:

    1. Treasury Directive 34-01, Waiving Claims Against Treasury Employees for Erroneous Overpayments, issued April 22, 2015

    2. Delegation Order 1-15, Waiving Claims Against Current or Former Employees for Erroneous Payments

General Waiver Requirements

  1. A debt may only be waived for:

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

    2. 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. A waiver will not be granted where there is any proof of fraud, misrepresentation, fault or lack of good faith on the part of the debtor. Fault may exist if the debtor knew or should have known an error or omission 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 debtor should have known an error existed.

  3. The debtor must submit a waiver request no later than 15 days from the date of the demand letter sent to the debtor in accordance with established procedures for an erroneous payment of pay and allowances, travel, transportation or relocation expenses and allowances.

  4. The debtor must provide a written justification for a waiver request along with supporting documentation, if any.

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

    1. Debtor’s name

    2. Debtor’s SEID

    3. Amount of debt

    4. Amount requested to be waived

    5. Reason or justification for the waiver request or appeal

    6. Receipts or vouchers redacted to omit any social security numbers or bank account numbers if the waiver request is for travel, transportation or relocation expenses and allowances

    7. Any additional documentation that supports the waiver request

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

Evaluation Criteria

  1. Factors considered for a waiver of debt relating to pay and allowances, travel, transportation and relocation pay and allowances include but are not limited to:

    1. Whether the debtor knew of or should have known of the erroneous payment.

    2. The time elapsed between the erroneous payment, the subsequent discovery of the error and notification to the debtor.

    3. Whether the debtor received an unearned benefit or was unduly enriched.

    4. Whether the debtor has relinquished a valuable right or changed positions for the worse due to the erroneous payment.

  2. Factors the IRS considers when evaluating a debtor’s waiver request of a training debt:

    1. Whether the situation presents extenuating circumstances.

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

    3. Whether the debtor acted to mitigate the loss to the IRS (such as a timely withdrawal from the course where the debtor obtained a tuition refund).

  3. See Treasury Directive Publication 34-1 (04/22/15) for additional evaluation criteria.

Waiver Approvals and Denials

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

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

    2. The 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 charged will be pro-rated based on the amount of the unpaid debt.

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

  2. If either the IRS or Treasury's DASHR/CHCO denies a waiver request for an erroneous payment of pay and allowances, travel, transportation or relocation expenses and allowances:

    1. The debtor has the right to appeal the decision. See IRM 1.35.13.5, Appealing the Denial of Waiver Requests for Pay and Allowances, Travel, Transportation and Relocation Expenses and Allowances.

    2. Suspension of the debt collection effort continues during the appeal process. If the appeal is denied, the IRS will initiate or resume collection of the debt amount, including interest, administrative fees and penalties that accrued during the waiver review process.

  3. Waiver requests after IRS employment separation:

    Waiver request denied after separation from the IRS Collection action enforced by offsetting any payments due the debtor or referral to Bureau of Fiscal Services
    Waiver request granted after separation from IRS All amounts paid toward debt (up to the amount waived) will be refunded to the debtor
    Partial waiver granted after separation from IRS Debtor is responsible for remaining debt balance to include accumulated interest, administrative fees and penalties on that remaining balance

Waiver Request for Pay and Allowances

  1. Debtors 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. Generally, waiver of an overpayment will not be approved if the debtor 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.

Waiver Request Submission

  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 following office: Mail Waiver Request to following address:
    Less than $15,000 Director, Work Force Progression and Management, HCO Austin Payroll Center
    Internal Revenue Service
    3651 S. Interregional Highway
    Mail Stop 1550-AUSC
    Austin, TX 78741
    $15,000 or More 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 following office: Mail Waiver Request To:
    Less than $15,000 Associate Chief Counsel (Finance & Management) Associate Chief Counsel (Finance & Management)
    Internal Revenue Service, CC:FM:PF
    1111 Constitution Avenue NW
    Room 3042 IR
    ATTN.: Financial Operations
    Washington, DC 20224
    $15,000 or More 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 both the pay and the allowances overpayment.

Waiver Request for Travel, Transportation, Relocation Expenses and Allowances

  1. A debtor may submit a request to waive the collection of a debt, in whole or in part, arising from an erroneous payment of travel, transportation or relocation expenses and allowances.

  2. Travel Management reviews each waiver request to ensure the debtor provided all required documentation. If not, Travel Management contacts the debtor to request the additional information.

  3. Final approval authority is for either the DCFO 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 additional information about the waiver process for travel, transportation or relocation expenses and allowances, contact GP&FM at: CFO.BFC.Debt.Collection.Helpdesk@irs.gov.

  5. For additional information about the waiver process for pay and allowances, contact the Employee Resource Center (ERC).

Waiver Request Submission

  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 and 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 following office: Mail Waiver Request To:
    Less than $7,500 DCFO Beckley Finance Center
    Internal Revenue Service
    ATTN.: Debt Collection Unit
    P.O. Box 9002
    Beckley, WV 25802
    $7,500 or More DASHR/CHCO, Department of the Treasury
  2. The amount of a claim due to an erroneous overpayment of travel, transportation or relocation expenses and allowances is the sum of the claims for:

    1. The overpayment of travel expenses and allowances

    2. The overpayment of transportation expenses and allowances

    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 their 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 penalties.

  4. The debtor must submit the appeal, in writing, 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. The basis for the appeal.

    2. A chronological order of the events surrounding the erroneous payments.

    3. A statement regarding any mitigating factors.

    4. The original request for a waiver.

    5. The deciding official’s denial of the original waiver request.

    6. The deciding official’s conclusion for the basis of the denial.

    7. Copies of any personnel actions (e.g. promotions, demotions, step increases, etc) that relate to the overpayment.

  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 Waiver Request to following office: Mail Appeal Request To:
    Less than $15,000 Director, Worklife, Benefits and Performance, HCO Austin Payroll Center/Appeals Processing
    Internal Revenue Service
    3651 S. Interregional Highway
    Mail Stop 1550-AUSC
    Austin, TX 78741
    $15,000 or More 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 Waiver Request to following office: Mail 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 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 and 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 Waiver Request to following office: Mail Appeal Request To:
    Any Dollar Amount 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 DASHR/CHCO, Department of the Treasury, for review and a decision to approve the waiver or the appeal. See tables in IRM 1.35.13.3, Waiver Request for Pay and Allowances, IRM 1.35.13.4, Waiver Request for Travel, Transportation, Relocation Expenses and Allowances and IRM 1.35.13.7, Training Debts.

Treasury Reporting Requirements

  1. Treasury Directive Publication 34-01, Section (b), Waiving Claims Against Treasury Employees for Erroneous Payments, states, "The heads of bureaus and the DASHR/CHCO shall maintain a register of waiver actions subject to Departmental review. The register must cover each fiscal year and be prepared annually by October 15th of each year for the preceding fiscal year."

  2. The IRS maintains three separate subsidiary registers as follows:

    1. The chief, Austin Payroll Center, maintains a subsidiary register pertaining to waiver actions for pay and allowances that involve IRS employees referred to as Subsidiary Register 1.

    2. The director, Travel Management, maintains a subsidiary register pertaining to waiver actions for travel, transportation or relocation expenses and allowances involving IRS employees referred to as Subsidiary Register 2.

    3. The Associate Chief Counsel (Finance & Management) maintains a subsidiary register pertaining to waiver actions for pay and allowances, travel, transportation or relocation expenses and allowances involving Chief Counsel employees referred to as Subsidiary Register 3.

  3. Each subsidiary register must contain:

    1. The total amount waived by the IRS or Chief Counsel.

    2. The number and dollar amount of waiver applications granted in full.

    3. The number and dollar amount of waiver applications granted in part and denied in part and the dollar amount of each.

    4. The number and dollar amount of waiver applications denied in their entirety.

    5. The number and dollar amount of the waiver applications referred to the DASHR/CHCO for initial action or for appeal.

    6. The dollar amount refunded from a waiver action by the IRS or Chief Counsel.

    7. The dollar amount refunded from a waiver action by the DASHR/CHCO or the assistant secretary for management.

  4. The chief, Austin Payroll Center; the director, Travel Management and the Associate Chief Counsel (Finance & Management) are responsible for forwarding their subsidiary register to the director, GP&FM, no later than October 15.

  5. The chief, Austin Payroll Center; the director, Travel Management and the Associate Chief Counsel (Finance & Management) are responsible for retaining a written record of each waiver action listed in the subsidiary register for six years and three months after the close of the fiscal year in which the action was taken on the waiver. At a minimum, the written record must contain:

    1. A summary of the events surrounding the erroneous payment.

    2. Any written comments submitted by the debtor from whom collection is sought.

    3. An account of the waiver action taken and the reasons for such action.

    4. Any other pertinent information such as any action to refund amounts repaid.

Training Debts

  1. There are no appeal rights for denied training debt waivers.

Waiver Request Submission Requirements

  1. Written requests for waivers from repayment of funds received are submitted as follows:

    Training Debt
    Amount of Claim Address Waiver Request to following office: Mail Waiver Request To:
    Any Dollar Amount CFO
    Internal Revenue Service
    ATTN.: Debt Collection Unit-Training Debt
    P.O. Box 9002
    Beckley, WV 25802

Denials of Training Debt Waiver Requests Are Not Appealable

  1. There are no appeal rights for denied training debt waivers.

Debtor’s Right to Withdraw a Request without Prejudice

  1. A debtor has the right to withdraw a training debt waiver request at any time prior to a decision. A withdrawal of a training debt waiver request does not prohibit the debtor from resubmitting the request later provided it is within the period of time specified in the debt letter.

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

Right to a Judicial Review

  1. If a petitioner for a waiver request believes he or she suffered legal wrong because of action of the Department of the Treasury, that petitioner is entitled to a judicial review of that action. This right, resulting from the Administrative Procedures Act of 1946 (P. L. 79-404, 60 Stat. 237), is codified at 5 USC Section 702.