[Federal Register Volume 60, Number 114 (Wednesday, June 14, 1995)]
[Rules and Regulations]
[Pages 31244-31246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14442]



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DEPARTMENT OF JUSTICE

28 CFR Part 0

[Tax Division Directive No. 105]


Redelegation of Authority To Compromise and Close Civil Claims

AGENCY: Department of Justice.

ACTION: Final rule.

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SUMMARY: This directive increases the settlement authority of the 
Chiefs of the Civil Trial Sections, the Court of Federal Claims 
Section, the Appellate Section, the Office of Review, the Deputy 
Assistant Attorneys General, and the United States Attorneys to 
compromise and close civil claims. In addition, this directive provides 
for discretionary redelegation of limited authority by a section chief 
to his or her assistant chiefs and reviewers. This latter redelegation 
is subject to the limitation that the assistant chief or reviewer may 
not be the attorney-of-record in the case. This directive also 
eliminates the separate redelegation to the Attorney-in-Charge of the 
Dallas Field Office as that office, now the Southwestern Civil Trial 
Section, is covered under the general redelegation of authority to 
Chiefs of Civil Trial Sections. This directive supersedes Directive No. 
95.

EFFECTIVE DATE: June 14, 1995.

FOR FURTHER INFORMATION CONTACT:
Milan Karlan, Tax Division, Department of Justice, Washington, DC 20530 
(202) 307-6567.

SUPPLEMENTARY INFORMATION: This rule relates to internal agency 
management. Therefore, pursuant to 5 U.S.C. 553, notice of proposed 
rulemaking and opportunity for comments are not required, and this rule 
may be made effective less than 30 days after publication in the 
Federal Register. This regulation is not a major rule within the 
meaning of Executive Order 12291. Therefore, a regulatory impact 
analysis has not been prepared. Finally, this regulation does not have 
an impact on small entities and, therefore, is not subject to the 
Regulatory Flexibility Act.

List of Subjects in 28 CFR Part 0

    Authority Delegations (Government Agencies), Government Employees, 
Organization and Functions (Government Agencies).

    Accordingly, 28 CFR Part 0 is amended as follows:

PART 0--ORGANIZATION OF THE DEPARTMENT OF JUSTICE

    1. The authority citation for part 0 continues to read as follows:

    Authority: 5 U.S.C. 301; 28 U.S.C. 509, 510, 515-19.

    2. The Appendix to subpart Y of part 0 is amended by removing Tax 
Division Directive No. 95.
    3. Tax Division Directive No. 105 is added to read as follows:

[Directive No. 105]

    By virtue of the authority vested in me by Part 0 of Title 28 of 
the Code of Federal Regulations, particularly Sections 0.70, 0.160, 
0.162, 0.164, 0.166, and 0.168, It Is Hereby Ordered As Follows:
    Section 1. The Chiefs of the Civil Trial Sections, the Court of 
Federal Claims Section, and the Appellate Section are authorized to 
reject offers in compromise, regardless of amount, provided that such 
action is not opposed by the agency or agencies involved.
    Section 2. Subject to the conditions and limitations set forth in 
Section 8 hereof, the Chiefs of the Civil Trial Sections and the Court 
of Federal Claims Section are authorized to:
    (A) Accept offers in compromise in all civil cases, other than:

[[Page 31245]]

    (i) Cases involving liability under Section 6672 of the Internal 
revenue Code; and
    (ii) Cases in which judgments in favor of the United States have 
been entered, in which the amount of the Government's concession, 
exclusive of statutory interest, does not exceed $300,000;
    (B) Approve administrative settlements of civil claims against the 
United States in all cases, other than cases involving liability under 
Section 6672 of the Internal Revenue Code, in which the amount of the 
Government's concession, exclusive of statutory interest, does not 
exceed $200,000;
    (C) Approve concessions (other than by compromise) of civil claims 
asserted by the United States in all cases, other than cases involving 
liability under Section 6672 of the Internal Revenue Code, in which the 
gross amount of the original claim does not exceed $200,000;
    (D) In civil cases involving liability under Section 6672 of the 
Internal Revenue Code, (i) accept offers in compromise in which the 
amount of the Government's concession, exclusive of statutory interest, 
does not exceed $500,000; (ii) approve administrative settlements of 
claims against the United States in which the amount of the 
Government's concession, exclusive of statutory interest, does not 
exceed $350,000; and (iii) approve concessions (other than by 
compromise) of claims asserted by the United States in which the gross 
amount of the original claim does not exceed $350,000;
    (E) Accept offers in compromise of judgments in favor of the United 
States in all civil cases in which the amount of the Government's 
concession, exclusive of statutory interest, does not exceed $500,000;
    (F) Accept offers in compromise in injunction or declaratory 
judgment suits against the United States in which the principal amount 
of the related liability, if any, does not exceed $300,000; and
    (G) Accept offers in compromise in all other nonmonetary cases;

provided that such action is not opposed by the agency or agencies 
involved, and provided further that the proposed compromise, 
administrative settlement, or concession is not subject to reference to 
the Joint Committee on Taxation.
    Section 3. The Chiefs of the Civil Trial Sections and the Court of 
Federal Claims Section are authorized on a case-by-case basis to 
redelegate in writing to their respective Assistant Section Chiefs or 
Reviewers the authority delegated to them in Section 1 hereof to reject 
offers, and in Section 2 hereof,
    (A) to accept offers in compromise in which the amount of the 
Government's concession, exclusive of statutory interest, does not 
exceed $100,000;
    (B) to approve administrative settlements of civil claims against 
the United States in which the amount of the Government's concession, 
exclusive of statutory interest, does not exceed $100,000; and
    (C) to approve concessions (other than by compromise) of civil 
claims asserted by the United States in which the gross amount of the 
original claim does not exceed $100,000;

provided that such redelegation is not made to the attorney-of-record 
in the case. The redelegations pursuant to this section shall be by 
memorandum signed by the Section Chief, which shall be placed in the 
Department of Justice file for the applicable case.
    Section 4. Subject to the conditions and limitations set forth in 
Section 8 hereof, the Chief of the Appellate Section is authorized to:
    (A) Accept offers in compromise with reference to litigating 
hazards of the issues on appeal in all civil cases in which the amount 
of the Government's concession, exclusive of statutory interest, does 
not exceed $300,000;
    (B) Accept offers in compromise in declaratory judgment suits 
against the United States in which the principal amount of the related 
liability, if any, does not exceed $300,000; and
    (C) Accept offers in compromise in all other nonmonetary cases 
which do not involve issues concerning collectibility;

provided that (i) such acceptance is not opposed by the agency or 
agencies involved or the chief of the section in which the case 
originated, and (ii) the proposed compromise is not subject to 
reference to the Joint Committee on Taxation.
    Section 5. Subject to the conditions and limitations set forth in 
Section 8 hereof, the Chief of the Office of Review is authorized to:
    (A) Accept offers in compromise of claims against the United States 
in all civil cases in which the amount of the Government's concession, 
exclusive of statutory interest, does not exceed $1,500,000;
    (B) Accept offers in compromise of claims on behalf of the United 
States in all civil cases in which the difference between the gross 
amount of the original claim and the proposed settlement does not 
exceed $1,500,000 or 15 percent of the original claim, whichever is 
greater;
    (C) Approve administrative settlements of civil claims against the 
United States in all cases in which the amount of the Government's 
concession, exclusive of statutory interest, does not exceed 
$1,000,000;
    (D) Approve concessions (other than by compromise) of civil claims 
asserted by the United States in all cases in which the gross amount of 
the original claim does not exceed $1,000,000;
    (E) Accept offers in compromise in all nonmonetary cases; and
    (F) Reject offers in compromise or disapprove administrative 
settlements or concessions, regardless of amount,

provided that such action is not opposed by the agency or agencies 
involved or the chief of the section to which the case is assigned, and 
provided further that the proposed compromise, administrative 
settlement, or concession is not subject to reference to the Joint 
Committee on Taxation.
    Section 6. Subject to the conditions and limitations set forth in 
Section 8 hereof, each of the Deputy Assistant Attorneys General is 
authorized to:
    (A) Accept offers in compromise of claims against the United States 
in all civil cases in which the amount of the Government's concession, 
exclusive of statutory interest, does not exceed $2,000,000;
    (B) Accept offers in compromise of claims on behalf of the United 
States in all civil cases in which the difference between the gross 
amount of the original claim and the proposed settlement does not 
exceed $2,000,000 or 15 percent of the original claim, whichever is 
greater;
    (C) Approve administrative settlements of civil claims against the 
United States in all cases in which the amount of the Government's 
concession does not exceed $1,500,000, exclusive of statutory interest;
    (D) Approve concessions (other than by compromise) of civil claims 
asserted by the United States in all cases in which the gross amount of 
the original claim does not exceed $1,500,000;
    (E) Accept offers in compromise in all nonmonetary cases; and
    (F) Reject offers in compromise or disapprove administrative 
settlements or concessions, regardless of amount,

provided that such action is not opposed by the agency or agencies 
involved and the proposed compromise, administrative settlement, or 
concession is not subject to reference to the Joint Committee on 
Taxation.
    Section 7. Subject to the conditions and limitations set forth in 
Section 8 hereof, United States Attorneys are authorized to:
    (A) Reject offers in compromise of judgments in favor of the United 
States, regardless of amount;
    (B) Accept offers in compromise of judgments in favor of the United 
States 

[[Page 31246]]
where the amount of the judgment does not exceed $300,000; and
    (C) Terminate collection activity by his or her office as to 
judgments in favor of the United States which do not exceed $300,000 if 
the United States Attorney concludes that the judgment is 
uncollectible;

provided that such action has the concurrence in writing of the agency 
or agencies involved, and provided further that this authorization 
extends only to judgments which have been formally referred to the 
United States Attorney for collection.
    Section 8. The authority redelegated herein shall be subject to the 
following conditions and limitations:
    (A) When, for any reason, the compromise, administrative 
settlement, or concession of a particular claim, as a practical matter, 
will control or adversely influence the disposition of other claims 
totalling more than the respective amounts designated in Sections 2, 3, 
4, 5, 6, and 7 hereof, the case shall be forwarded for review at the 
appropriate level for the cumulative amount of the affected claims;
    (B) When, because of the importance of a question of law or policy 
presented, the position taken by the agency or agencies or by the 
United States Attorney involved, or any other considerations, the 
person otherwise authorized herein to take final action is of the 
opinion that the proposed disposition should be reviewed at a higher 
level, the case shall be forwarded for such review;
    (C) If the Department has previously submitted a case to the Joint 
Committee on Taxation leaving one or more issues unresolved, any 
subsequent compromise, administrative settlement, or concession in that 
case must be submitted to the Joint Committee, whether or not the 
overpayment exceeds the amount specified in Section 6405 of the 
Internal Revenue Code;
    (D) Nothing in this Directive shall be construed as altering any 
provision of Subpart Y of Part O of Title 28 of the Code of Federal 
Regulations requiring the submission of certain cases to the Attorney 
General, the Associate Attorney General, or the Solicitor General.
    (E) Authority to approve recommendations that the Government 
confess error or make administrative settlements in cases on appeal is 
excepted from the foregoing redelegations; and
    (F) The Assistant Attorney General, at any time, may withdraw any 
authority delegated by this Directive as it relates to any particular 
case or category of cases, or to any part thereof.
    Section 9. This Directive supersedes Tax Division Directive No. 95, 
effective February 21, 1992.
    Section 10. This Directive is effective on June 14, 1995.

    Dated: November 22, 1994.
Loretta C. Argrett,
Assistant Attorney General.

    Approved:

    Dated: June 8, 1995.
Jamie Gorelick,
Deputy Attorney General.
[FR Doc. 95-14442 Filed 6-13-95; 8:45 am]
BILLING CODE 4410-01-M