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Collection Actions: 26 C.F.R. § 1.501(r)–5 Limitation on charges

(a) In general. A hospital organization meets the requirements of section 501(r)(5) with respect to a hospital facility it operates only if the hospital facility (and any substantially-related entity, as defined in § 1.501(r)–1(b)(28)) limits the amount charged for care it provides to any individual who is eligible for assistance under its financial assistance policy (FAP) to—

Collection Actions: 26 C.F.R. § 1.501(r)–6 Billing and collection

(a) In general. A hospital organization meets the requirements of section 501(r)(6) with respect to a hospital facility it operates only if the hospital facility does not engage in extraordinary collection actions (ECAs), as defined in paragraph (b) of this section, against an individual to obtain payment for care before the hospital facility has made reasonable efforts to determine whether the individual is eligible for assistance for the care under its financial assistance policy (FAP), as described in paragraph (c) of this section.

Collection Actions: Listing of Provisions

Title 26—Internal Revenue

Chapter I—Internal Revenue Service, Department of the Treasury

Part 1—Income Taxes

Sec.

1.501(r)–1 Definitions.

1.501(r)–2 Failures to satisfy section 501(r).

* * *

1.501(r)–4 Financial assistance policy and emergency medical care policy.

1.501(r)–5 Limitation on charges.

1.501(r)–6 Billing and collection.

* * *

Collection Actions: 26 C.F.R. § 1.501(r)–1 Definitions

(a) Application. The definitions set forth in this section apply to §§ 1.501(r)–2 through 1.501(r)–7.

(b) Definitions—

(1) Amounts generally billed (AGB) means the amounts generally billed for emergency or other medically necessary care to individuals who have insurance covering such care, determined in accordance with § 1.501(r)–5(b).

Collection Actions: 26 C.F.R. § 1.501(r)–4 Financial assistance policy and emergency medical care policy

(a) In general. A hospital organization meets the requirements of section 501(r)(4) with respect to a hospital facility it operates only if the hospital organization establishes for that hospital facility—

(1) A written financial assistance policy (FAP) that meets the requirements of paragraph (b) of this section; and

(2) A written emergency medical care policy that meets the requirements of paragraph (c) of this section.

Collection Actions: 26 C.F.R. § 1.501(r)–2 Failures to satisfy section 501(r)

(a) Revocation of section 501(c)(3) status. Except as otherwise provided in paragraphs (b) and (c) of this section, a hospital organization failing to meet one or more of the requirements of section 501(r) separately with respect to one or more hospital facilities it operates may have its section 501(c)(3) status revoked as of the first day of the taxable year in which the failure occurs.

Collection Actions: 31 U.S.C. § 3701. Definitions and application

(a) In this chapter—

(1) “administrative offset” means withholding funds payable by the United States (including funds payable by the United States on behalf of a State government) to, or held by the United States for, a person to satisfy a claim.

(2) “calendar quarter” means a 3-month period beginning on January 1, April 1, July 1, or October 1.

(3) “consumer reporting agency” means—

Collection Actions: Listing of Provisions

Title 31—Money and Finance—Treasury

* * *

Chapter 37—Claims

Subchapter I—General

Sec.

3701. Definitions and application

3702. Authority to settle claims

Subchapter II—Claims of the United States Government

3711. Collection and compromise

* * *

3713. Priority of government claims

* * *

Collection Actions: 31 U.S.C. § 3720A. Reduction of tax refund by amount of debt

(a) Any Federal agency that is owed by a person a past-due, legally enforceable debt (including debt administered by a third party acting as an agent for the Federal Government) shall, and any agency subject to section 9 of the Act of May 18, 1933 (16 U.S.C. 831h), owed such a debt may, in accordance with regulations issued pursuant to subsections (b) and (d), notify the Secretary of the Treasury at least once each year of the amount of such debt.

Collection Actions: Introduction

The Debt Collection Improvement Act of 1996 was enacted by Pub. L. No. 104-134, § 31001, 110 Stat. 1321. It is principally codified as part of the Claims Collection Act, 31 U.S.C. §§ 3701-3733, relevant portions of which are reprinted below.

Collection Actions: Listing of Provisions

Title 31—Money and Finance–Treasury

* * *

Chapter 37—Claims

Subchapter I—General

Sec.

3701. Definitions and application

3702. Authority to settle claims

Subchapter II—Claims of the United States Government

3711. Collection and compromise

* * *

3713. Priority of government claims

* * *

Collection Actions: 31 U.S.C. § 3719. Reports on debt collection activities

(a) In consultation with the Comptroller General of the United States, the Secretary of the Treasury shall prescribe regulations requiring the head of each agency with outstanding nontax claims to prepare and submit to the Secretary at least once each year a report summarizing the status of loans and accounts receivable that are managed by the head of the agency. The report shall contain—

(1) information on—

Collection Actions: 31 U.S.C. § 3702. Authority to settle claims

(a) Except as provided in this chapter or another law, all claims of or against the United States Government shall be settled as follows:

(1) The Secretary of Defense shall settle—

(A) claims involving uniformed service members’ pay, allowances, travel, transportation, payments for unused accrued leave, retired pay, and survivor benefits; and

Collection Actions: 31 U.S.C. § 3713. Priority of government claims

(a)(1) A claim of the United States Government shall be paid first when—

(A) a person indebted to the Government is insolvent and—

(i) the debtor without enough property to pay all debts makes a voluntary assignment of property;

(ii) property of the debtor, if absent, is attached; or

(iii) an act of bankruptcy is committed; or

Collection Actions: 31 U.S.C. § 3716. Administrative offset

(a) After trying to collect a claim from a person under section 3711(a) of this title, the head of an executive, judicial, or legislative agency may collect the claim by administrative offset. The head of the agency may collect by administrative offset only after giving the debtor—

(1) written notice of the type and amount of the claim, the intention of the head of the agency to collect the claim by administrative offset, and an explanation of the rights of the debtor under this section;

Collection Actions: 31 U.S.C. § 3720D. Garnishment

(a) Notwithstanding any provision of State law, the head of an executive, judicial, or legislative agency that administers a program that gives rise to a delinquent nontax debt owed to the United States by an individual may in accordance with this section garnish the disposable pay of the individual to collect the amount owed, if the individual is not currently making required repayment in accordance with any agreement between the agency head and the individual.

Collection Actions: 31 U.S.C. § 3717. Interest and penalty on claims

(a)(1) The head of an executive, judicial, or legislative agency shall charge a minimum annual rate of interest on an outstanding debt on a United States Government claim owed by a person that is equal to the average investment rate for the Treasury tax and loan accounts for the 12-month period ending on September 30 of each year, rounded to the nearest whole percentage point. The Secretary of the Treasury shall publish the rate before November 1 of that year. The rate is effective on the first day of the next calendar quarter.

Collection Actions: 31 C.F.R. § 212.11 Compliance and record retention

(a) Enforcement. Federal banking agencies will enforce compliance with this part.

(b) Record retention. A financial institution shall maintain records of account activity and actions taken in response to a garnishment order, sufficient to demonstrate compliance with this part, for a period of not less than two years from the date on which the financial institution receives the garnishment order.

Collection Actions: 31 C.F.R. § 212.5 Account review

(a) Timing of account review. When served a garnishment order issued against a debtor, a financial institution shall perform an account review:

(1) No later than two business days following receipt of (A) the order, and (B) sufficient information from the creditor that initiated the order to determine whether the debtor is an account holder, if such information is not already included in the order; or