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31 U.S.C. § 3728 — Setoff against judgment
Federal law — U.S. Code and appendices · legal_authorities
**(a)** The Secretary of the Treasury shall withhold paying that part of a judgment against the United States Government presented to the Secretary that is equal to a debt the plaintiff owes the Government.
**(b)** The Secretary shall—
(1) discharge the debt if the plaintiff agrees to the setoff and discharges a part of the judgment equal to the debt; or
(2)
(A) withhold payment of an additional amount the Secretary decides will cover legal costs of bringing a civil action for the debt if the plaintiff denies the debt or does not agree to the setoff; and
(B) have a civil action brought if one has not already been brought.
**(c)** If the Government loses a civil action to recover a debt or recovers less than the amount the Secretary withholds under this section, the Secretary shall pay the plaintiff the balance and interest of 6 percent for the time the money is withheld.
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Source location: Title 31, Chapter 37, § 3728; chapter-037-claims.md
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**(a)** The Secretary of the Treasury shall withhold paying that part of a judgment against the United States Government presented to the Secretary that is equal to a debt the plaintiff owes the Government.
**(b)** The Secretary shall—
(1) discharge the debt if the plaintiff agrees to the setoff and discharges a part of the judgment equal to the debt; or
(2)
(A) withhold payment of an additional amount the Secretary decides will cover legal costs of bringing a civil action for the debt if the plaintiff denies the debt or does not agree to the setoff; and
(B) have a civil action brought if one has not already been brought.
**(c)** If the Government loses a civil action to recover a debt or recovers less than the amount the Secretary withholds under this section, the Secretary shall pay the plaintiff the balance and interest of 6 percent for the time the money is withheld.
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Federal law — U.S. Code and appendices · legal_authorities
(1) For limitations on credits and refunds, see subchapter B of chapter 66.
(2) For overpayment in case of adjustments to accrued foreign taxes, see section 905(c).
(3) For credit or refund in case of deficiency dividends paid by a personal holding company, see section 547.
(4) For refund, credit, or abatement of amounts disallowed by courts upon review of Tax Court decision, see section 7486.
(5) For refund or redemption of stamps, see chapter 69.
(6) For abatement, credit, or refund in case of jeopardy assessments, see chapter 70.
(7) For restrictions on transfers and assignments of claims against the United States, see [section 3727 of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3727&num=0&edition=prelim), United States Code.
(8) For set-off of claims against amounts due the United States, see [section 3728 of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3728&num=0&edition=prelim), United States Code.
(9) For special provisions relating to alcohol and tobacco taxes, see subtitle E.
(10) For credit or refund in case of deficiency dividends paid by a regulated investment company or real estate investment trust, see section 860.
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Federal law — U.S. Code and appendices · legal_authorities
Page 334
TITLE 31—MONEY AND FINANCE
§ 3728
agency, the surety on a bond on the contract,
and any disbursing official for the contract.
(d) During a war or national emergency pro-
claimed by the President or declared by law and
ended by proclamation or law, a contract with
the Department of Defense, the General Services
Administration, the Department of Energy
(when carrying out duties and powers formerly
carried out by the Atomic Energy Commission),
or other agency the President designates may
provide, or may be changed without consider-
ation to provide, that a future payment under
the contract to an assignee is not subject to re-
duction or setoff. A payment subsequently due
under the contract (even after the war or emer-
gency is ended) shall be paid to the assignee
without a reduction or setoff for liability of the
assignor—
(1) to the Government independent of the
contract; or
(2) because of renegotiation, fine, penalty
(except an amount that may be collected or
withheld under, or because the assignor does
not comply with, the contract), taxes, social
security contributions, or withholding or fail-
ing to withhold taxes or social security con-
tributions, arising from, or independent of, the
contract.
(e)(1) An assignee under this section does not
have to make restitution of, refund, or repay the
amount received because of the liability of the
assignor to the Government that arises from or
is independent of the contract.
(2) The Government may not collect or re-
claim money paid to a person receiving an
amount under an assignment or allotment of
pay or allowances authorized by law when liabil-
ity may exist because of the death of the person
making the assignment or allotment.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 976.)
HISTORICAL AN
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