TCC-01-19, Tax Rebate

Giving Hope and Support to America's Children

U.S. Department of Health and Human Services
Administration for Children & Families
Office of Child Support Enforcement

TCC-01-19

JUN 7, 2001

TO:	ALL FEDERAL OFFSET COORDINATORS
RE:	Tax Rebate

Dear Coordinators:

This correspondence is in response to the recent passage of H.R. 1836, Restoring Earnings to Lift Individuals and Empower Families (RELIEF) Act of 2001. A part of this Act will allow for additional refunds to be sent to most taxpayers. These payments could begin going out in the next few weeks. According to estimates received from the Department of Treasury, around 100 million rebates representing approximately $40 billion will be processed. The Internal Revenue Service (IRS) and Financial Management Services (FMS) are preparing to process and mail these rebates and expect the mailing to begin in mid July.

These payments will be subject to offset under the Federal Offset Program as the conference report language in the Act specifically indicates that the credits are "subject to the refund offset provisions, such as those applicable to past-due child support under Section 642 of the Code." This means that you will see an increase in offsets beginning in late July. Please note that these figures and dates are the best estimates available at this time and are subject to change.

As always, it is important that you continually update your cases and arrearages. With additional offsets possible, please be certain your cases and arrearages are current.

OCSE is working with IRS and FMS and will get more information to you as it becomes available. If you have any questions, please call Roy Nix, Chief, Federal Collections or the Special Collections Unit at (202) 401-9389.

Sincerely,

Donna J. Bonar
Associate Commissioner
For Office of Automation and Program Operations
Office of Child Support Enforcement

cc:	State IV-D Directors
	Regional Program Managers
	ACF Regional Administrators

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