FOR IMMEDIATE RELEASE:
Tuesday, Feb. 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.