Citation Nr: 21064352 Decision Date: 10/19/21 Archive Date: 10/19/21 DOCKET NO. 20-24 043 DATE: October 19, 2021 REMANDED Whether the overpayment of Department of Veterans Affairs (VA) compensation benefits in the amount of $12,540.42 was properly created is remanded. REASONS FOR REMAND The Veteran had active duty in the United States Army from January 1986 to February 1988, and from August 1989 to May 1990. The matter on appeal arises from the February 2018 decision by the Department of Veterans Affairs (VA) Regional Office (RO) to remove the Veteran's former spouse from his award effective February 1, 2005, which led to the March 2018 letter from the VA Debt Management Center (DMC) notifying the Veteran of the $12,540.42 debt that had resulted. The Veteran has perfected an appeal as to the validity of this debt. He also submitted a VA Form 5655 Financial Status Report (FSR) in March 2018, which suggests he is also requesting a waiver. The waiver matter has not yet been adjudicated, which is appropriate given the current appeal as to the validity of the debt has not yet been decided. The Veteran provided hearing testimony before the undersigned in July 2021. A transcript of this hearing is within the record before the Board of Veterans Appeals (Board). The Veteran has argued that this debt is improper because he notified VA in October 2008 that he was not married, and VA failed to act until many years later. The record indeed includes a copy of the Veteran's October 2008 VA Form 21-0538 Mandatory Status of Dependents, which notes the Veteran is not married and has no children. At his July 2021 hearing, the Veteran also suggested that VA inappropriately removed his biological daughter from his award and left stepchildren on the award after the divorce from their mother. The Veteran and his representative indicated that they have never been provided with an explanation as to how this debt was created. The record does not provide a clear accounting of the overpayment debt. It is unclear whether it was created solely due to the removal of the dependent spouse, or whether any impact was made related to the Veteran's biological daughter, or his former step-children. In order to afford due process to the Veteran, an accounting should be made, and the Veteran should be provided a clear, thorough explanation of the basis for the amount at issue in this appeal. This matter is REMANDED for the following action: 1. Provide an audit of the $12,540.42 overpayment of service-connected benefits at issue (noted in the March 2018 DMC letter and the March 2020 SOC), clearly explaining the amount of the overpayment and how it was calculated. A copy of the audit should be provided to the Veteran and his representative, and placed in the claims file. 2. After completing the above action, to include any other development as may be indicated by any response received as a consequence of the action taken in the preceding paragraph, the Veteran's claim related to the validity of the debt at issue should be readjudicated based on the entirety of the evidence. 3. Once the validity of the debt question is adjudicated, if a debt remains, the RO should consider whether the March 2018 FSR was a request for a waiver of the debt at issue. If so, the RO should refer the matter as appropriate for consideration of the waiver request. MICHAEL E. KILCOYNE Veterans Law Judge Board of Veterans' Appeals Attorney for the Board A. Adamson, Counsel The Board's decision in this case is binding only with respect to the instant matter decided. This decision is not precedential and does not establish VA policies or interpretations of general applicability. 38 C.F.R. § 20.1303.