FY 2018 Federal Offset and Pre-Offset Notice Program Fees
DEAR COLLEAGUE LETTER
DATE: August 25, 2017
TO: All State IV-D Directors
SUBJECT: FY 2018 Federal Offset and Pre-Offset Notice Program Fees
The fiscal year (FY) 2018 fee for federal tax refund offsets will be $19.51 per offset. The fee will be $13.12 per administrative offset.
As you are aware, the Department of the Treasury’s Bureau of Fiscal Service (Fiscal Service) is required by law to charge fees to creditor agencies to cover the costs of servicing debts referred for collection. Each year, Fiscal Service reviews its operational costs and fee structure to ensure it complies with that requirement.
For the last seven years, Fiscal Service's tax refund offset fees have remained unchanged. However, for FY 2018, Fiscal Service has determined that the above indicated increase is necessary to recover its costs.
We are pleased to announce that the OCSE Pre-Offset Notice fee will remain at $0.52 per notice. We will reassess our contract costs in December 2017 to determine if we need to update Pre-Offset Notice fees for the remainder of the fiscal year.
FY 2018 begins on October 1, 2017, and ends September 30, 2018.
If you have questions, please contact the Federal Collections and Enforcement team at firstname.lastname@example.org.
Scott M. Lekan
Office of Child Support Enforcement