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B-202109 1 (1981-08-04)

handle is hein.gao/gaobabkdc0001 and id is 1 raw text is: 



AR                    orA              H N T N .. 254
7                        COMPTROLLER GENERAL OF THE UNITED STATES
SWASHINGTON D.C. 20548





B-202109                                            August 4, 1981


The Honorable Peter W. Rodino
Chairman, Committee on the Judiciary
House of Representatives

Dear Mr. Chairman:

     We are forwarding for your consideration ouriviews on House
bill 3741l, 97th Congress, 1st Session, a bill to increase the efficiency
of Government-wide efforts to collect debts owed the United States.

     On November 19 and 20, 1980, and April 23, 1981, we testified before
the Senate Committee on Governmental Affairs in support of earlier legis-
lative proposals, including Senate bill 3160 (96th), Senate bill 591 (97th),
and the proposals then under consideration by the Administration, all of
which included provisions similar to several of the provisions in House
bill 3741. We have provided you with comments on House bills 749, 1243,
and 2152 that also contained similar provisions. In these comments, we
proposed additional legislation to strengthen debt collection. Some of
these proposals have been included in House--bill 3741. Also, many of
our earlier suggested language changes and other comments have been
incorporated in House bill 3741.

     We support the purpose of the proposed legislation. It would
remove a number of current impediments to Federal collection efforts
and provide needed additional collection tools. In addition, we
recommend that the bill include a provision for offset of delinquent
debts against Federal tax refunds due to debtors and additional
language to strengthen sections 3 and 7.

Offset of Federal Tax Refunds

     Federal tax refunds are routinely made to many individuals who have
not paid debts owed the Government. In March 1979 we reported to the
Congress 1/ that of a sample of 613 terminated debts totaling $431,000,
up to $153,000, or 36 percent, could have been collected over a 2-year
period by reducing the debtors' tax refunds. We recommended that, on a
test basis, delinquent nontax receivables be collected by reducing future
income tax refunds due the debtors.



i/The Government Can Collect Many Delinquent Debts by Keeping
   Federal Tax Refunds as Offsets, (FGMSD 79-19, March 9, 1979).




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