*This is an archive page. The links are no longer being updated. 
1991.10.23 :  Child Support Collections

Contact: Susan Long (202) 245-2760                         
October 23, 1991

     HHS Secretary Louis W. Sullivan, M.D., announced today that
over $500 million has been collected for past due child support
from federal tax returns so far in *This is an archive page. The links are no longer being updated. 
1991.  This is an increase of
nearly $40 million from the comparable 1990 amount.
     "These collections are critical for children who are due
child support.  By collecting these funds from tax returns, we
are sending a strong message that children count in our society,"
Secretary Sullivan said. "But, we still have more to do to ensure
that non-custodial parents meet their obligations to help care
for their children."
       Under the Federal Income Tax Refund Offset Program, State
Child Support Enforcement Agencies report names of parents who
are delinquent with their child support payments and the overdue
amount to the federal Office of Child Support Enforcement.  These
persons are notified in writing of the amount to be withheld to
cover their child support debt and of the procedures to contest
any offset.  Parents who have been notified of a potential offset
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.
     Approximately 638,000 parents whose children receive Aid to
Families with Dependent Children and whose unpaid child support
totaled $150 or more have had their federal income tax refunds
withheld in *This is an archive page. The links are no longer being updated. 
1991.  Nearly $380 million have been collected from
these parents, an increase of $24 million (or 7 percent) over
last year's amount.  These collections are used to reimburse
state/local governments for the public assistance previously
provided to the families.  For families who do not receive AFDC,
an accrued debt of $500 can activate an offset.  In 1991, over
182,000 of these families benefited from nearly $123 million
collected on their behalf, an increase of $12 million (or 11
percent) from the prior year.
     "The Tax Refund Offset Program is a simple means of
collecting past due child support.  The process can also help
identify the location, the employer and the assets of parents not
meeting their legal obligation to their children so that further
enforcement action can be taken," said Jo Anne Barnhart,
assistant secretary for children and families.
     Statistics reveal that the most recent average collection
was $678 for non-AFDC cases, while the average collection for
AFDC cases was $595 per case.  The average cost of processing was
only $5.48 per case.
     The Federal Income Tax Refund Offset Program was mandated by
Congress in 1981 and expanded in 1984 to include repayment of
child support debts owed directly to custodial families.  States
with an income tax also must be able to withhold state income tax
refunds due to parents owing such debts.
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