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Tax Refund Offset Final Collection PY 96

DCL-97-03

Published: January 14, 1997
Information About:
State/Local Child Support Agencies
Topics:
Federal Systems
Types:
Policy, Dear Colleague Letters (DCL)
Tags:
Collection & Enforcement Systems

Re: Tax Refund Offset - Eleventh and Final Collection Report for Processing Year 1996

Dear Colleague:

We would like to thank all of you associated with the federal tax refund offset program and commend your efforts. The tax refund offset program had another record setting year because of an increase in submittals in processing year 1996 resulting in over one billion dollars in net collections. This amount represents a 23% increase over the previous record setting year. Congratulations and on behalf of America's children, thanks for all your hard work and devotion to the program.

Enclosed is the collection report representing the tax refund offsets for the month of December 1996 less the $5.71 per offset service fee and any adjustments made during this period for the 1991 through 1996 processing years.

The net collection total for December 1996 for 15,412 offsets is $9,046,514 as compared to 12,450 offsets for $7,609,512 in December 1995. The record setting year-to-date net collection total through December 1996 is $1,021,448,990.

We would also like to inform you that the IRS service fee for the federal tax refund offset program for processing year 1997 has been increased to $6.02 per offset. This fee change will be effective on the February 1997 collection report.

The net check amount for the month's collection report will be accomplished through the Automated Clearing House (ACH) and deposited directly into your State's account on January 10, 1997. If you have any questions pertaining to the federal tax refund offset program, please feel free to contact the Special Collections Unit at (202) 401-9389.

Sincerely,

David Gray Ross

Deputy Director

Office of Child Support Enforcement