B-86001 (G), I-17000-969, NOV. 1, 1956
Highlights
GAYNOR: REFERENCE IS MADE TO YOUR LETTER POSTMARKED AUGUST 22. YOUR OFFER WAS SUBMITTED TO THE DEPARTMENT OF JUSTICE FOR CONSIDERATION UNDER THEIR COMPROMISE JURISDICTION. YOU WERE ADVISED OF THE ACCEPTANCE OF YOUR OFFER AND WERE REQUESTED TO FORWARD THE AMOUNT OF $2. YOUR SUGGESTION OR NEW OFFER IS NOT ACCEPTABLE TO THE GOVERNMENT FOR SEVERAL REASONS. IT OVERLOOKS THE FACT THAT YOUR INDEBTEDNESS IS IN THE AMOUNT OF $4. THE LATTER FIGURE WAS ACCEPTABLE TO THE DEPARTMENT OF JUSTICE AS A CASH COMPROMISE SETTLEMENT. THERE WAS NOT INTENT TO FORGIVE ANY PART OF THE INDEBTEDNESS. WHILE YOUR PRESENT FINANCIAL CONDITION IS APPRECIATED. IT IS OUR DUTY TO PROTECT THE INTERESTS OF THE GOVERNMENT.
B-86001 (G), I-17000-969, NOV. 1, 1956
TO THE REVEREND GERARD F. GAYNOR:
REFERENCE IS MADE TO YOUR LETTER POSTMARKED AUGUST 22, 1956, CONCERNING YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $4,838.30.
BY LETTER DATED JANUARY 25, 1956, YOU STATED THAT ALTHOUGH YOU HAD NO MONEY OF YOUR OWN, YOU WOULD BORROW $2,500 IF THAT AMOUNT WOULD BE ACCEPTABLE IN COMPROMISE SETTLEMENT OF THE GOVERNMENT'S CLAIM. SINCE OUR OFFICE HAD NO AUTHORITY TO ACCEPT LESS THAN THE FULL AMOUNT DUE, YOUR OFFER WAS SUBMITTED TO THE DEPARTMENT OF JUSTICE FOR CONSIDERATION UNDER THEIR COMPROMISE JURISDICTION. BY LETTER DATED JUNE 13, 1956, THE DEPARTMENT OF JUSTICE AUTHORIZED US TO ACCEPT YOUR OFFER, AND BY OUR LETTER OF JULY 11, 1956, YOU WERE ADVISED OF THE ACCEPTANCE OF YOUR OFFER AND WERE REQUESTED TO FORWARD THE AMOUNT OF $2,500 HERE. YOU NOW SAY THAT IT HAS BEEN DIFFICULT TO RAISE THAT SUM AND SUGGEST THAT THE GOVERNMENT ACCEPT AS COLLATERAL A DESIGNATION AS BENEFICIARY OF A $2,500 INSURANCE POLICY.
YOUR SUGGESTION OR NEW OFFER IS NOT ACCEPTABLE TO THE GOVERNMENT FOR SEVERAL REASONS. IN THE FIRST INSTANCE, IT OVERLOOKS THE FACT THAT YOUR INDEBTEDNESS IS IN THE AMOUNT OF $4,838.30 AND NOT $2,500. THE LATTER FIGURE WAS ACCEPTABLE TO THE DEPARTMENT OF JUSTICE AS A CASH COMPROMISE SETTLEMENT. THERE WAS NOT INTENT TO FORGIVE ANY PART OF THE INDEBTEDNESS, BUT ONLY TO CLOSE THE MATTER ON A CASH SETTLEMENT BASIS WITHOUT FURTHER DELAY OR EXPENSE. IN ADDITION, THE NOMINATION AS BENEFICIARY OF AN INSURANCE POLICY AFFORDS NO PROTECTION TO THE GOVERNMENT, SINCE GENERALLY THE BENEFICIARY MAY BE CHANGED AT ANY TIME, OR THE POLICY MAY BE PERMITTED TO LAPSE, OR OTHERWISE TERMINATED.
WHILE YOUR PRESENT FINANCIAL CONDITION IS APPRECIATED, IT IS OUR DUTY TO PROTECT THE INTERESTS OF THE GOVERNMENT. ACCORDINGLY, IT IS SUGGESTED THAT YOU RESUME PAYMENTS OF NOT LESS THAN $5 A MONTH ON THE DEBT. WHEN YOUR FINANCIAL SITUATION HAS IMPROVED YOU SHOULD RETIRE THE INDEBTEDNESS IN ITS ENTIRETY, OR, IF THAT IS NOT POSSIBLE, YOU MAY SUBMIT A NEW OFFER IN COMPROMISE ACCOMPANIED BY A CHECK IN THE AMOUNT OF THE OFFER. THE MATTER WILL BE HELD IN ABEYANCE FOR 30 DAYS FROM THE DATE OF THIS LETTER, AT WHICH TIME, IF NO REPLY IS RECEIVED, IT WILL BE FORWARDED TO THE DEPARTMENT OF JUSTICE FOR THEIR FURTHER CONSIDERATION.