Write-off of Delinquent Debt

To comply with Office of Management and Budget (OMB Office of Management and Budget), Circular No. A-129 mandates that delinquent receivables older than 2 years be written off unless documented and justified to OMB in consultation with Treasury.

Agency Responsibilities	NFC Responsibilities	Estimated Timeframe
Review their delinquency report(s) and instruct NFC to write off the debts as currently not collectible (CNC) or close out the debt and terminate collection activity; or provide the approved waiver from OMB.	Non-Applicable	5-7 business days
Non-Applicable	Validates accounting and makes necessary adjustments to write off the delinquent debt as requested by the Agency. For debts that are greater than $600.00 and, are written off as closed out, an Internal Revenue Service Form 1099-C, Cancellation of Debt, will be issued to applicable debtors. On a monthly basis, writes off delinquent debts approaching two years old as CNC.	5-10 business days
Non-Applicable	Although a debt is considered CNC, NFC will continue to pursue collection efforts until death of the debtor, discharge in bankruptcy, or upon Agency request to waive, cancel, or write off the debt as closed out.	Non-Applicable

Agency Responsibilities

NFC Responsibilities

Estimated Timeframe

Review their delinquency report(s) and instruct NFC to write off the debts as currently not collectible (CNC) or close out the debt and terminate collection activity; or provide the approved waiver from OMB.

Non-Applicable

5-7 business days

Non-Applicable

Validates accounting and makes necessary adjustments to write off the delinquent debt as requested by the Agency.

For debts that are greater than $600.00 and, are written off as closed out, an Internal Revenue Service Form 1099-C, Cancellation of Debt, will be issued to applicable debtors.

On a monthly basis, writes off delinquent debts approaching two years old as CNC.

5-10 business days

Non-Applicable

Although a debt is considered CNC, NFC will continue to pursue collection efforts until death of the debtor, discharge in bankruptcy, or upon Agency request to waive, cancel, or write off the debt as closed out.

Non-Applicable

Note: The above timeframe is an estimate. Actual days may vary depending upon complexity, accuracy, and completeness of information received and other factors outside of either party's control.

Administrative Billings and Collections (ABCO)

Write-off of Delinquent Debt

See Also