Date: December 18, 1997
For Release: Immediately
Contact: Michael Kharfen, (202) 401-9215
NEW RECORD $1.1 BILLION
COLLECTED BY IRS IN DELINQUENT CHILD SUPPORT
HHS Secretary Donna E. Shalala announced today that a new record amount
of $1.1 billion in delinquent child support was collected by the federal
government from federal income tax refunds for tax year 1996. This amount
was 10 percent higher than the previous year and a 66 percent increase
since 1992. Nearly 1.3 million families benefitted from these collections.
"With the toughest child support
enforcement measures ever enacted, the Clinton administration is sending
a strong message to deadbeat parents that you will not escape supporting
your children," said Secretary Shalala. "Each year, working
together with the states, we are seizing more tax refunds to insure
children have the food and clothing they need.
"Child support can make the difference
for kids to rely on their parents' support instead of taxpayer supported
welfare," Shalala added.
Under the federal tax offset program,
state child support agencies report names of parents who owe child support
payments and the overdue amount to the HHS Administration for Children
and Families. These individuals are then notified in writing of the
amount which will be withheld to cover their child support debt. That
amount is then deducted from their income tax refund. The delinquency
may also be reported to credit reporting agencies.
"The well-being of children is
enhanced when they receive emotional and financial support from both
of their parents," said David Gray Ross, deputy director, HHS office
of child support enforcement. "As each of our new child support
enforcement provisions go into effect, like the National New Hire Directory,
delinquent parents will find it more difficult than ever to dodge their
financial obligations to their children."
Parents whose children receive Temporary
Assistance to Needy Families (TANF) and whose unpaid child support totals
$150 or more may have their federal income tax refunds withheld. For
tax year 1996, refunds were withheld on behalf of over 875,000 families
with children receiving TANF. Parents of children who do not receive
TANF must owe at least $500 to have their refunds withheld. Over 385,000
non-TANF families benefitted from the program this year.
For tax year 1996, the total amount
collected was $1.1 billion, up from $661,771,371 in tax year 1992. For
tax year 1996, the average collection was $856.84. The average collection
was $862.71 for non-TANF families and $854.26 for TANF families. Collections
for tax year 1996 were made after tax returns for that year were filed
in 1997 and refunds requested.
Since taking office, the Clinton administration
made child support enforcement a high priority, resulting in unprecedented
financial support for children. In 1996, the federal/state child support
enforcement system collected approximately $12 billion, up from $8 billion
in 1992, an increase of 50 percent. Paternity establishment rose to
nearly 1 million in 1996, almost doubling, from 516,000 in 1992. The
new child support enforcement measures included in the new welfare reform
law are projected to increase collections by billions over the next
10 years.
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Note: All HHS press releases, fact sheets and other press materials
are available at http://www.hhs.gov/news.
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