Record IRS Collections
A record of more than $828 million in delinquent child support was collected by the federal government from federal income tax refunds for tax year 1994. The amount was nearly 18 percent higher than the previous year, and over 1.1 million families benefited from the program.In announcing the increase, DHHS Secretary Donna E. Shalala noted that "tough child support enforcement promotes parental responsibility and protects children."
Under the income tax refund offset program, state child support enforcement agencies report names of parents who owe child support and the overdue amount to the Federal Office of Child Support Enforcement (OCSE). These persons are notified in writing of the amount which will be withheld to cover their child support debt and that amount is then deducted from their income tax refund. Parents may have their names deleted from the list by paying the full amount due, or, at state option, by entering into an agreement to make periodic payments. The delinquency may also be reported to credit reporting agencies.
"Children deserve responsible parents who provide emotional and financial support," said Mary Jo Bane, Assistant Secretary for Children and Families. OCSE Deputy Director David Gray Ross added: "We cannot and will not rest while there are parents who continue to evade their responsibilities to their children." Parents whose children receive AFDC and whose unpaid child support totals $150 or more may have their federal income tax refunds withheld. In 1994, refunds were withheld for over 846,000 families receiving AFDC. For families who do not receive AFDC, an accrued debt of $500 can activate an offset. Over 316,000 non-AFDC families benefited from the program this year.
For tax year 1994, the average collection was $713 ($748 for non- AFDC cases and $699 for AFDC). The cost of processing these cases was $7.83 per case. Collections for tax year 1994 were made after tax returns for that year were filed in 1995 and refunds requested. Collections for 1995 will begin as income tax returns are filed in 1996.