The Acting Commissioner of Social Security, Carolyn Colvin, issued a press release on April 14 announcing that she directed employees of the Social Security Administration (SSA) to cease referring debts owed to the agency to the Treasury Department that are over 10 years old. SSA had been notifying the Treasury Department of amounts that it had overpaid to beneficiaries, either because of SSA’s error or the beneficiary’s. The Treasury Department was then withholding the amount of the overpayment reported by SSA from the beneficiary’s tax return.
The press release indicates that Colvin intends to undertake a review of SSA’s responsibility and discretion with regard to referring debts to the Treasury Department. She also encouraged anyone who feels they were assessed with an aged overpayment which was offset by the Treasury Department to “request an explanation or seek options to resolve the overpayment.”