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Write-off of Delinquent Debt
To comply with Office of Management and Budget (OMB), 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 |
See Also |