7 CFR § 273.13(b)(4) & 7 CFR § 273.17(b) & 7 CFR § 273.18(b)

When the underpayment wasn’t used to offset a claim, send the EDG a Notice of Action advising: 

• benefits are being restored; 

• the amount of the underpayment;
• reason for the underpayment;
• time period of the underpayment; 
• how the underpayment will be issued; and
• the EDG’s right to a fair hearing if they disagree.

When any or all of the underpayment is used to offset a claim(s), send the EDG a Notice of Action advising: 

• benefits are being restored; 

• the amount of the underpayment;
• reason for the underpayment;
• time period of the underpayment; 
• the amount of the underpayment used to offset a claim(s); 
• how the underpayment will be issued; and
• the EDG’s right to a fair hearing if they disagree.

Additional notice is not required when increased benefits have been issued for an underpayment, and the EDG previously received notice the increased benefits would end.