Dear Colleague DCL9621

ACF/Office of Child Support Enforcement


April 22, 1996                     DC-96-21


TO ALL STATE IV-D DIRECTORS


Re:  Tax Refund Offset - Third Collection Report for Processing
Year 1996

Dear Colleague:

We are very pleased to forward to you the third
Collection/Adjustment/Address and corresponding Name Change
reports for the 1996 Federal Tax Refund Offset Program.  Enclosed
is the collection report representing the tax refund offsets for
the month of April 1996 less the $5.71 per offset service fee and
any adjustments made during this period for the 1991 through 1996
processing years.

The net collection total for April 1996 for 253,877 offsets is
$219,075,507 as compared to 223,331 offsets for $158,932,207 in
April 1995.  The year-to-date total through April 1996 is
$545,027,952 as compared to $360,045,007 for the same time period
in processing year 1995 and $439,860,268 in processing year 1994.
The low year-to-date total for processing year 1995 was
attributed to the IRS performing an audit on those refunds
involving earned income tax credits which caused a processing
delay of from six to eight weeks on these refunds.

The net check amount for each month's collection report will no
longer be sent via Electronic Funds Transfer (EFT).  Beginning
with the April collection report, the monthly transfer will be
accomplished through the Automated Clearing House (ACH).  This
transfer is very similar to the way payroll checks are sent to
banks.  It will be deposited directly into your State's account.
All future transfers will be accomplished on the last work day of
the month via ACH with the exception of the December report which
will be transferred on approximately January 10th.

The transfer through the Automated Clearing House is scheduled to
be accomplished on April 30, 1996.  Please make the appropriate
program staff aware of this change and the date on which the
monthly transfers will now occur.  When program staff make
inquiries with your financial institution concerning the monthly
transfer, please ensure that questions are directed to the ACH
section and not the fed line section.  If you have any questions
pertaining to the federal tax refund offset program, please feel
free to contact the Special Collections Unit at (202) 401-9389.

                                 Sincerely,




                                 David Gray Ross
                                 Deputy Director
                                 Office of Child Support
                                    Enforcement

Enclosures