BOP Program Statement 8531.12 § 17

compromised, or written off, if the full amount cannot be

collected because of:

! the debtor’s inability to pay the full amount within a

reasonable time or

! the debtor refuses to pay the claim in full and the

Government cannot enforce collection proceedings in a

reasonable time.

In accordance with the Program Statement on Financial Management

- Debt Management, a Request for Compromise of Claim may be

submitted by an employee or any person having a direct interest

in the compromise. The request must be approved by the Director,

Bureau of Prisons or designee.

Prior to submitting a delinquent non-federal debt to Treasury for

cross-servicing, the Chief, CAR or designee may recommend the

debt be written off. This recommendation must be based on

guidelines established in the section on Overdue Accounts

Receivable in the Program Statement on Central Accounts

Receivable - FPI.

Once a debt has been determined to be uncollectible, the debt

will be submitted for write-off and closeout. The following

levels are established for write off authority:

! $10,000 and under - Chief, CAR

! $10,001 and over, but under $50,000 - FPI, Controller

! $50,000 and over - FPI, Deputy Assistant Director

Any debts over $100,000 must have concurrence from FPI General

Counsel and DOJ before closeout can be accomplished. The Chief,

CAR is responsible for ensuring a Claim Collection Litigation

Report (CCLR) is prepared for submission to the FPI General

Counsel and DOJ, Civil Division and Commercial Litigation Branch.

After approval from FPI General Counsel and DOJ, the Chief, CAR

will ensure memos pertaining to the write-off and approval forms

are submitted to Financial Management Branch, Central Office for

debt closeout.

All compromise of claims and or write-off/close-out over $600

must be reported to the Internal Revenue Service (IRS) on a 1099-

C, Cancellation of Debt Form for the applicable tax year of the

debtor.

P8531.12

7/7/2006

Page 12