42 U.S.C. § 1008 : US Code - Section 1008: Overpayments and underpayments

Search 42 U.S.C. § 1008 : US Code - Section 1008: Overpayments and underpayments

(a) In general
Whenever the Commissioner of Social Security finds that more or
less than the correct amount of payment has been made to any person
under this subchapter, proper adjustment or recovery shall be made,
as follows:
(1) With respect to payment to a person of more than the
correct amount, the Commissioner of Social Security shall
decrease any payment under this subchapter to which the overpaid
person (if a qualified individual) is entitled, or shall require
the overpaid person or his or her estate to refund the amount in
excess of the correct amount, or, if recovery is not obtained
under these two methods, shall seek or pursue recovery by means
of reduction in tax refunds based on notice to the Secretary of
the Treasury, as authorized under section 3720A of title 31.
(2) With respect to payment of less than the correct amount to
a qualified individual who, at the time the Commissioner of
Social Security is prepared to take action with respect to the
underpayment -
(A) is living, the Commissioner of Social Security shall make
payment to the qualified individual (or the qualified
individual's representative payee designated under section 1007
of this title) of the balance of the amount due the underpaid
qualified individual; or
(B) is deceased, the balance of the amount due shall revert
to the general fund of the Treasury.
(b) Waiver of recovery of overpayment
In any case in which more than the correct amount of payment has
been made, there shall be no adjustment of payments to, or recovery
by the United States from, any person who is without fault if the
Commissioner of Social Security determines that the adjustment or
recovery would defeat the purpose of this subchapter or would be
against equity and good conscience.
(c) Limited immunity for disbursing officers
A disbursing officer may not be held liable for any amount paid
by the officer if the adjustment or recovery of the amount is
waived under subsection (b) of this section, or adjustment under
subsection (a) of this section is not completed before the death of
the qualified individual against whose benefits deductions are
authorized.
(d) Authorized collection practices
(1) In general
With respect to any delinquent amount, the Commissioner of
Social Security may use the collection practices described in
sections 3711(e), 3716, and 3718 of title 31, as in effect on
October 1, 1994.
(2) Definition
For purposes of paragraph (1), the term "delinquent amount"
means an amount -
(A) in excess of the correct amount of the payment under this
subchapter; and
(B) determined by the Commissioner of Social Security to be
otherwise unrecoverable under this section from a person who is
not a qualified individual under this subchapter.
(e) Cross-program recovery of overpayments
For provisions relating to the cross-program recovery of
overpayments made under programs administered by the Commissioner
of Social Security, see section 1320b-17 of this title.