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Date:  October 23, 1996
For Release:  Immediately
Contact:  ACF Press Office, (202) 401-9215
 

Record More Than $1 Billion Collected by IRS in Delinquent Child Support


The Clinton Administration reported today that a record amount of more than $1 billion in delinquent child support was collected by the federal government from federal income tax refunds for tax year 1995. This amount was 23 percent higher than the previous year and up 51 percent since 1992. Over 1.2 million families benefited from these collections.

"The Clinton Administration is improving the future of millions of children with record child support collections and paternity establishments," said HHS Secretary Donna E. Shalala. "Since the Administration has taken office, child support collections have increased by almost 50 percent. The child support enforcement measures we insisted upon as part of welfare reform will build on this success. We are now sending the strongest possible message that parental responsibility must be a way of life, not an option."

Under the tax offset program, state child support enforcement agencies report names of parents who owe child support payments and the overdue amount to the HHS Administration for Children and Families. 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. The delinquency may also be reported to credit reporting agencies.

"Under the new welfare law, delinquent parents will no longer be able to leave their children for the taxpayers to support," said David G. Ross, deputy director, Office of Child Support Enforcement. "The Clinton Administration, working with our state and local partners, is putting these critical new child support enforcement measures into place. For the millions of children still in need, we have a new message of hope."

Parents whose children receive Aid to Families with Dependent Children and whose unpaid child support totals $150 or more may have their federal income tax refunds withheld. For tax year 1995, refunds were withheld on behalf of over 850,000 families with children receiving AFDC. Parents of children who do not receive AFDC must owe at least $500 to have their refunds withheld. Over 350,000 non-AFDC families benefited from the program this year.

For tax year 1995, the total amount collected was $1,000,831,413, up from $661,711,371 in tax year 1992. The average collection was $847 for non-AFDC families and $827 for AFDC cases. The cost of processing these cases was $5.71 per case. Collections for tax year 1995 were made after tax returns for that year were filed in 1996 and refunds requested. Collections for 1996 will begin as income tax returns are filed in 1997.

The Clinton Administration's partnership with states has resulted in unprecedented financial support for children. From 1992 to 1996, child support collections have grown by nearly 50 percent and paternity establishments have increased by 55 percent. In 1996, the federal-state child support enforcement system collected a record $11.8 billion from non-custodial parents, up from $8 billion in FY 1992.

Preliminary data show that an estimated 800,000 paternities were established in FY 1996, up from 515,857 in FY 1992. Under the child support enforcement measures proposed by the Administration and included in the new welfare law, child support collections could increase by $24 billion over the next 10 years.

Attached is a chart showing state-by-state child support collected thru tax refunds in tax year 1995.


STATE CHILD SUPPORT COLLECTIONS FROM 1995 INCOME TAX REFUNDS

Alaska                   $2,737,176
Alabama                  $25,222,875
Arkansas                 $10,946,665
Arizona                  $8,344,584
California               $124,298,897
Colorado                 $13,263,149
Connecticut              $13,079,646
District of Columbia     $2,465,410
Delaware                 $3,150,245
Florida                  $47,924,516
Georgia                  $35,148,379
Hawaii                   $4,271,033
Iowa                     $14,717,551
Idaho                    $3,865,479
Illinois                 $32,173,827
Indiana                  $26,183,387
Kansas                   $12,035,140
Kentucky                 $16,315,340
Louisiana                $18,437,799
Massachusetts            $11,504,875
Maryland                 $21,792,649
Maine                    $6,972,109
Michigan                 $55,225,399
Minnesota                $12,577,226
Missouri                 $23,743,980
Mississippi              $19,621,742
Montana                  $2,190,359
Nebraska                 $4,592,381
Nevada                   $4,126,140
New Hampshire            $3,465,802
New Mexico               $4,836,653
New Jersey               $25,153,605
New York                 $41,829,761
North Carolina           $27,795,751
North Dakota             $2,421,488
Ohio                     $56,992,860
Oklahoma                 $10,729,313
Oregon                   $9,903,562
Pennsylvania             $43,719,172
Puerto Rico              $3,074,935
Rhode Island             $2,186,783
South Carolina           $8,547,096
South Dakota             $2,962,434
Tennessee                $20,110,025
Texas                    $68,925,688
Utah                     $5,907,299
Virginia                 $18,656,760
Vermont                  $1,855,524
Washington               $22,811,436
Wisconsin                $31,162,409
West Virginia            $7,419,339
Wyoming                  $3,285,463
 
United States            $1,000,831,413
 

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