[Decision Concerning Indebtedness Waiver for Federal Employee]

A Department of Health and Human Services (HHS) employee appealed the partial waiver of his indebtedness, which stemmed from an improper reduction in force and a backpay award, contending that the: (1) entire amount of his lump-sum leave payment should be waived; and (2) amount deducted as taxes from his refund should be returned to him. GAO held that: (1) it originally miscalculated the claimant's indebtedness and he was entitled to a greater refund; (2) the claimant was only entitled to waiver for the amount by which his leave payment exceeded his backpay award; and (3) HHS should provide the claimant with documentation showing that the refund was not taxable income. Accordingly, the claim was denied, and the original decision was modified.