2.11: Part 8 - Liabilities

What to Report

5 U.S.C. app. §§ 102(a)(4) & (e)(1); 5 C.F.R. §§ 2634.305 & 2634.311

Filers report liabilities owed to any creditor that exceeded $10,000 at any time during the reporting period.  The reporting requirement covers liabilities of the filer and any liabilities of the filer’s spouse and dependent children.

How to Report

Generally, filers report liabilities as follows:

Creditors:  Filers provide the name of the creditor.  Reviewers may request the city and state if that information is needed for the conflicts analysis.

Type:  Filers describe the type of liability.

Amount:  Filers mark the appropriate category of amount or value.  For revolving charge accounts, filers use the value of the liability at the end of the reporting period.  For all other liabilities, filers mark the category that corresponds to the highest value of the liability during the reporting period.

Year Incurred:  Filers provide the year that the liability was incurred.

Rate:  Filers provide the interest rate.  Describing the rate in reference to a prime rate, such as “prime + 1%,” is also sufficient.

Term:  Filers specify, in years or months, the time that the loan allows for repayment.  Describing the term as “on demand,” “open-ended,” “revolving” (credit cards), or something similar is also sufficient, if applicable.

Certain Mortgages Are Not Reportable

Filers do not need to report a mortgage or home equity loan on their personal residence, unless (1) the residence was rented during the reporting period or (2) the filer is a nominee or appointee to a Presidentially appointed, Senate-confirmed (PAS) position.  A PAS nominee or appointee generally must report a mortgage or home equity loan on a personal residence unless a specific additional exclusion applies.

Other Liabilities That Are Not Reportable

Filers do not need to report the following liabilities in Part 8: (1) loans secured by a personal motor vehicle, household furniture, or appliances, provided that the loan does not exceed the item’s purchase price; (2) revolving charge accounts, such as credit card balances, provided that the outstanding liability did not exceed $10,000 at the close of the reporting period; (3) liabilities of a trade or business, unless the filer (or spouse or a dependent child) is personally liable; (4) personal liabilities owed to a spouse, parent, sibling, or child of the filer, the filer’s spouse, or the filer’s dependent child; (5) liabilities of a spouse living separate and apart with the intention of terminating the marriage or providing for a permanent separation; and (6) obligations arising from divorce or permanent separation.

No Liabilities to Report

The filer must affirmatively state that he or she does not have any liabilities to report.  Within Integrity, the filer would make this statement by marking the “I do not have...” checkbox.  For hard copy reports, the filer would write “None.”