Test a federal claim for compromise or an end to collection
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- List the claim amount excluding interest, whether it has been referred, and the facts the file gives on ability to pay, collection cost, and proof. Do not recommend a compromise.
- What the lawyer must review
- 31 USC 3711(a): the head of an executive, judicial, or legislative agency shall try to collect a claim of the United States for money or property arising out of the activities of, or referred to, the agency. The head may compromise a claim of not more than $100,000 excluding interest, or such higher amount as the Attorney General may prescribe, that has not been referred to another executive or legislative agency for further collection action. Only the Comptroller General may compromise a claim arising out of an exception the Comptroller General makes in the account of an accountable official. The head may suspend or end collection on a claim referred to in subsection (a)(2) when it appears that no person liable has the present or prospective ability to pay a significant amount, or the cost of collecting the claim is likely to be more than the amount recovered. Subsection (b)(1) forbids the head to compromise or to suspend or end collection on a claim that appears to be fraudulent, false, or misrepresented by a party with an interest in the claim, or that is based on conduct in violation of the antitrust laws. 31 CFR 902.2(a): agencies may compromise a debt if the Government cannot collect the full amount because the debtor is unable to pay the full amount in a reasonable time, as verified through credit reports or other financial information; the Government is unable to collect the debt in full within a reasonable time by enforced collection proceedings; the cost does not justify enforced collection of the full amount; or there is significant doubt concerning the Government's ability to prove its case in court. Paragraphs (b) through (g) add factors for inability to pay, verification, litigative risk including possible fees under 28 USC 2412, cost, installment agreements, and a current financial statement executed under penalty of perjury. The agency is not required to compromise. This is not a waiver and not an act of grace.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.