For former employees that do not respond to a single letter of indebtedness, the debt may be referred to whom for offsetting collections and/or what other federal agencies?

For former employees that do not respond to a single letter of indebtedness, the debt may be referred to whom for offsetting collections and/or what other federal agencies?

• A. IRS - tax refund; Department of Justice or GAO, etc.
• B. SSA - social security; Department of Defense
• C. FTC - consumer protection; OMB
• D. DHS - customs; FBI

Answer: (A)

The key idea is using government-wide debt collection through offset of payments, with the IRS handling the primary channel by intercepting tax refunds to satisfy delinquent debts. When a former employee doesn’t respond to the initial notice, the debt can be referred to the IRS so any federal tax refund due can be offset to recover what’s owed. For debts that can’t be collected through tax refunds, other federal agencies such as the Department of Justice or GAO may take further collection actions or handle referrals as appropriate. The other agency pairings don’t participate in this primary offset mechanism or the common secondary referral path, so they don’t fit the typical process of offsetting collections.

The key idea is using government-wide debt collection through offset of payments, with the IRS handling the primary channel by intercepting tax refunds to satisfy delinquent debts. When a former employee doesn’t respond to the initial notice, the debt can be referred to the IRS so any federal tax refund due can be offset to recover what’s owed. For debts that can’t be collected through tax refunds, other federal agencies such as the Department of Justice or GAO may take further collection actions or handle referrals as appropriate. The other agency pairings don’t participate in this primary offset mechanism or the common secondary referral path, so they don’t fit the typical process of offsetting collections.