DCL-07-30, Federal Offset Program Fees

DEAR COLLEAGUE LETTER

DCL-07-30

DATE: September 24, 2007

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) 2008.

For FY 2008, the fee for Federal Income Tax Refund Offsets processed will increase by $1.00 per offset to $14.65, and the fee for Administrative Offsets will remain the same at $17.00 per offset. This is the same increase to Federal Income Tax Refund fees as last year, and is necessary to cover administrative and operating costs at FMS and IRS. OCSE is working closely with FMS to monitor and evaluate the cost reimbursement, and is striving to keep next year's fee from increasing. We will keep you posted on our evaluation.

There continues to be good news for states that have OCSE issue their Pre-Offset Notices (PON). The fee for this service will remain at $0.50 per notice for FY 2008. This fee covers the cost of the envelopes, as well as the printing, stuffing, and mailing of the notices. This will be the seventh straight year that OCSE has been able to maintain the $0.50 per notice fee, in spite of increases to the first class postage rates in 2002, 2006, and 2007.

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