RECORD IRS COLLECTIONS FOR DELINQUENT CHILD SUPPORT

Record IRS Collections for Delinquent Child Support




FOR IMMEDIATE RELEASE                   Contact:  Michael Kharfen
Monday, Feb. 5, 1996                              (202) 401-9215 


          RECORD IRS COLLECTIONS FOR DELINQUENT CHILD SUPPORT


     The Clinton administration reported today that a record of more
than $828 million in delinquent child support was collected by the
federal government from federal income tax refunds for tax year
1994.  The amount was nearly 18 percent higher than the previous
year, and over 1.2 million families benefitted from the program.
     "Aggressive collection of overdue child support from tax
refunds is just one way the Clinton administration has dramatically
increased the financial support for single parents with children,"
said HHS Secretary Donna E. Shalala.  "But, we have more work to do
for the millions of children whose future is at risk because their
parents evade their child support responsibilities."
     "If Congress agrees to real welfare reform that, in addition to 
ensuring tough child support enforcement, moves people to work,
promotes parental responsibility and protects children, then many
delinquent parents won't be able to escape their obligation to their
children as they do today," added Secretary Shalala.
     Under the President's proposals supported by Congress, child
support collections could increase by $24 billion over the next 10
years.  These measures include streamlined paternity establishment,
employer reporting of new hires, uniform interstate child support
laws, computerized statewide collections, and tough new penalties
such as driver's license revocation.
     The Clinton administration has also taken executive action to
make the federal government a model employer in child support
collections, increase paternity establishment and improve collection
of child support from parents who move from state to state. 
Overall, federal child support collections have increased from $7
billion in 1991 to an estimated $11 billion in 1995.
     Under the tax offset program, state child support enforcement
agencies report names of parents who owe child support payments and
the overdue amount to the federal Administration for Children and
Families.  These persons are notified in writing of the amount which
will be withheld to cover their child support debt and that amount
is then deducted from their income tax refund.  Parents 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.  The delinquency may also be reported to credit reporting
agencies.
     "Children deserve responsible parents who provide emotional and
financial support," said Mary Jo Bane, assistant secretary for
children and families and director, Office of Child Support
Enforcement.  "For those parents who refuse to voluntarily pay their
fair share, the tax offset program is a powerful means to secure the
money needed to prevent a child from having to grow up in poverty."
     Parents whose children receive Aid to Families with Dependent
Children and whose unpaid child support totals $150 or more may have
their federal income tax refunds withheld.  In 1994, refunds were
withheld for over 846,000 families receiving AFDC.  For families who
do not receive AFDC, an accrued debt of $500 can activate an offset. 
Over 316,000 non-AFDC families benefitted from the program this
year.
     For tax year 1994, the average collection was $713: $748 for
non-AFDC cases, and $699 for AFDC cases.  The cost of processing
these cases was $7.83 per case.  Collections for tax year 1994 were
made after tax returns for that year were filed in 1995 and refunds
requested.  Collections for 1995 will begin as income tax returns
are filed in 1996.


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