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Administration for Children and Families US Department of Health and Human Services

DEAR COLLEAGUE LETTER

DCL-06-25

DATE: August 11, 2006

TO:  ALL STATE IV-D DIRECTORS

RE:  Federal Offset Program Fees

Dear Colleague:

The Department of Treasury’s Financial Management Service (FMS) has provided the Federal Office of Child Support Enforcement (OCSE) with the offset fees for Fiscal Year (FY) 2007.  For FY 2007, the fee for Federal Income Tax Refund Offsets processed will increase by $1.00 per offset to $13.65, and the fee for Administrative Offsets will increase by $2.00 per offset to $17.00.  This is the first increase to Federal Income Tax Refund and Administrative Offset fees in two years, and is necessary to cover administrative and operating costs at FMS and IRS.

There is good news for those states that select OCSE to issue their Pre-Offset Notices (PON). The fee for this service should remain at $0.50 per notice for FY 2007, but changes to the postage rate for first class mail may cause this to be adjusted prior to FY 2008. This fee covers the cost of the envelopes, as well as the printing, stuffing, and mailing of the notices. 

If you have any questions regarding these fees, please contact Brian Peeler at (202) 401-5568 or brian.peeler@acf.hhs.gov.

Sincerely,

Margot Bean
Commissioner
Office of Child Support Enforcement

cc: Regional Program Managers
ACF Regional Administrators
Federal Offset Coordinators