January 15, 2004

In the Matter of the Petition by

HUBERT R. RANEY

8915 Saboda Court

at

Tampa, FL 33634-1125

P.S. Docket No. DCA 03-385

APPEARANCE FOR PETITIONER:

Hubert R. Raney

8915 Saboda Court

Tampa, FL  33634-1125

APPEARANCE FOR RESPONDENT:

Mark C. Sullivan

Labor Relations Specialist

United States Postal Service

2203 N. Lois Avenue, Suite 1042

Tampa, FL  33607-7142

FINAL DECISION ON MOTION TO DISMISS

            Petitioner filed his Petition to challenge an increase in Federal income tax withholding being taken by the Postal Service.  As its Answer to the Petition, Respondent asked that the Petition be dismissed for lack of jurisdiction because it does not involve a debt owed to the Postal Service.  Petitioner was given an opportunity to reply to the motion to dismiss, and he did so.

            The following findings of fact are made for the purpose of deciding the motion to dismiss.

FINDINGS OF FACT

            1.  By letter dated July 19, 2003, the Internal Revenue Service, Fresno Compliance Services, Questionable W-4 Program, Fresno, California, directed the United States Postal Service to disregard employee Hubert R. Raney’s Form W-4 and withhold tax as if the employee had “0” allowances.  (Letter attached to Respondent’s Answer).

            2.  After the Postal Service began making income tax withholding in accordance with the IRS letter, Petitioner and his union representative made inquiries to the Postal Service Human Resources Office in Tampa, Florida.  A human resources specialist replied by sending them a copy of the IRS directive, and providing a telephone number for the Internal Revenue Service, Questionable W-4 Program Section.  (October 15, 2003 and October 27, 2003 letters attached to Answer).

            3.  Mr. Raney filed his Petition on November 14, 2003.

DECISION

            Postal Service regulations and Rules of Procedure that govern Debt Collection Act proceedings apply only to debts owed to the Postal Service.  See Employee and Labor Relations Manual (ELM) §§461.1 and 461.31; 39 C.F.R. §961.2.  The ELM also directs readers to Postal Service Handbook F-16, Accounts Receivable, Chapter 7, for rules governing involuntary offsets to collect a debt owed to another federal agency, specifically including the IRS.  See ELM §461.2. 

            There is no debt owed to the Postal Service in this case.  If the IRS has made an error or committed a fraud against Petitioner, as he alleges, his recourse is to the IRS, not to the Postal Service.  The Debt Collection Act and the Postal Service’s implementing regulations do not authorize this office to provide Petitioner a hearing to challenge the IRS action.

            Respondent’s motion is granted and the Petition is dismissed for lack of jurisdiction.

                                                                                    Bruce R. Houston

                                                                                    Chief Administrative Law Judge