98 STAT. 1154
42 USC 664.
PUBLIC LAW 98-369—JULY 18, 1984
agency must pay to reimburse the Secretary of the Treasury for the full cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence may be used to reimburse appropriations which bore all or part of the cost of applying such procedure. "(e) Any Federal agency receiving notice from the Secretary of the Treasury that an erroneous payment has been made to such agency under subsection (c) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such agency under such subsection have been paid to such agency). "(f) For purposes of this section— "(1) the term 'Federal agency' means a department, agency, or instrumentality of the United States (other than an agency subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code); "(2) the term 'past-due support' means any delinquency subject to section 464 of the Social Security Act; and "(3) the term 'OASDI overpayment' means any overpayment of benefits made to an individual under title II of the Social Security Act". (2) The analysis of subchapter II of chapter 37 of title 31, United States Code, as amended by section 2652(a)(2) of this Act, is further amended by adding at the end thereof the following new item: "3720A. Reduction of tax refund by amount of debt.".
26 USC 6402.
(b)(1) Section 6402 of the Internal Revenue Code of 1954 (relating to authority to make credits or refunds) is amended by adding at the end thereof the following new subsections: "(d) COLLECTION OF DEBTS OWED TO FEDERAL AGENCIES.—
"(1) IN GENERAL.—Upon receiving notice from any Federal agency that a named person owes a past-due legally enforceable debt (other than any OASDI overpayment and past-due support subject to the provisions of subsection (c)) to such agency, the Secretary shall— "(A) reduce the amount of any overpayment payable to such person by the amount of such debt; "(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such agency; and "(C) notify the person making such overpayment that
- .,./.' such overpayment has been reduced by an amount necessary to satisfy such debt.
"(2) PRIORITIES FOR OFFSET.—Any overpayment by a person
42 USC 602.
shall be reduced pursuant to this subsection after such overpayment is reduced pursuant to subsection (c) with respect to pastdue support collected pursuant to an assignment under section 402(a)(26) of the Social Security Act and before such overpayment is credited to the future liability for tax of such person pursuant to subsection (b). If the Secretary receives notice from a Federal agency or agencies of more than one debt subject to paragraph (1) that is owed by a person to such agency or agencies, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.