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Date:  February 21, 1995
Contact:  Michael Kharfen  (202) 401-9215

IRS Collections for Delinquent Child Support Increase

The federal government collected a record $703 million in delinquent child support in 1993 by taking money from income tax refunds, the Department of Health and Human Services reported today. The amount was 13.6 percent higher than 1992, and nearly 1 million families benefited.

"We need to do more to ensure that every parent supports his or her children," said HHS Secretary Donna E. Shalala. "That's why the Clinton administration has proposed new measures to create a more aggressive and tougher child support enforcement system. That's also why tough child support enforcement must be a centerpiece of welfare reform. We want there to be no escape for those parents who seek to avoid responsibility for their children.

"The income tax system gives us a serious tool for addressing a serious problem," said Secretary Shalala. "When absent parents are not paying child support, we need to take every appropriate step -- including seizing the tax refund which the delinquent parent would otherwise receive."

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 federal Administration for Children and Families/Office of Child Support Enforcement. These persons are notified in writing of the amount which would be withheld to cover their child support debt. They are also advised of their right to contest the action if they believe it to be in error. 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.

"Every dollar we collect means food on the table and clothing to keep warm for a deserving child," said Mary Jo Bane, assistant secretary for children and families and director, Office of Child Support Enforcement. "Through determined state and local actions and the use of new technologies, the tax offset program is tremendously successful in securing money from parents who refuse to pay."

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. Refunds were withheld for over 721,000 families receiving AFDC. For families who do not receive AFDC, an accrued debt of $500 can activate an offset. For this year, 253,829 non-AFDC families benefited.

For 1993, the average collection was $728 for non-AFDC cases, while the average collection for AFDC cases was $682. The cost of processing these cases was $7.28 per case. Collections for 1993 were made after tax returns for that year were filed in 1994, and refunds requested. Collections for 1994 will begin as income tax returns are filed this year.

The administration's proposals to improve child support enforcement include universal paternity establishment and new penalties for those who refuse to pay, including withholding drivers' licenses.

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