dcl9630.htm

Tax Refund Offset - Fifth Collection Report for Processing Year 1996

JUN 18, 1996 DC-96-30

TO ALL STATE IV-D DIRECTORS

We are very please to forward to you the fourth 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 June 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 June 1996 for 95,731 offsets is $72,932,288 as compared to 233,319 offsets for $179,779,668 in June 1995. The reason for the larger offset amount for the month of Jun 1995 was because the IRS was performing an earned income tax credit audit and this delayed the processing of returns with tax credits from six to eight weeks. However, the year-to-date net collection total through June 1996 of $938,148,023 is 26% over the $742,782,347 collected for the same time period in processing year 1995. We continue to add to this year's record setting offset total and have a good chance of exceeding $1 billion in net collections by the end of December 1996.

The net check amount for this month's collection report will be accomplished through the Automated Clearing House (ACH) and deposited directly into your State's account on June 26th in order to accommodate those States whose fiscal year ends on June 30th. July's net collection amount will again be accomplished on the last work day of the month. Please make the appropriate program staff aware of this change and the date on which the June transfer will occur.

If you have any questions pertaining to the 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

Enclosure