HHH News Release

New Record $1.1 Billion Collect by IRS in Delinquent Child Support Payments
HHS Secretary Donna E. Shalala announced today that a new record amount of $1.1 billion in delinquent child support was collected by the federal government from federal income tax refunds for tax year 1996. This amount was 10 percent higher than the previous year and a 66 percent increase since 1992. Nearly 1.3 million families benefitted from these collections.

"With the toughest child support enforcement measures ever enacted, the Clinton administration is sending a strong message to deadbeat parents that you will not escape supporting your children," said Secretary Shalala. "Each year, working together with the states, we are seizing more tax refunds to insure children have the food and clothing they need.

"Child support can make the difference for kids to rely on their parents' support instead of taxpayer supported welfare," Shalala added.

Under the federal tax offset program, state child support agencies report names of parents who owe child support payments and the overdue amount to the HHS Administration for Children and Families. These individuals are then notified in writing of the amount which will be withheld to cover their child support debt. That amount is then deducted from their income tax refund. The delinquency may also be reported to credit reporting agencies.

"The well-being of children is enhanced when they receive emotional and financial support from both of their parents," said David Gray Ross, deputy director, HHS office of child support enforcement. "As each of our new child support enforcement provisions go into effect, like the National New Hire Directory, delinquent parents will find it more difficult than ever to dodge their financial obligations to their children."

Parents whose children receive Temporary Assistance to Needy Families (TANF) and whose unpaid child support totals $150 or more may have their federal income tax refunds withheld. For tax year 1996, refunds were withheld on behalf of over 875,000 families with children receiving TANF. Parents of children who do not receive TANF must owe at least $500 to have their refunds withheld. Over 385,000 non-TANF families benefitted from the program this year.

For tax year 1996, the total amount collected was $1.1 billion, up from $661,771,371 in tax year 1992. For tax year 1996, the average collection was $856.84. The average collection was $862.71 for non-TANF families and $854.26 for TANF families. Collections for tax year 1996 were made after tax returns for that year were filed in 1997 and refunds requested.

Since taking office, the Clinton administration made child support enforcement a high priority, resulting in unprecedented financial support for children. In 1996, the federal/state child support enforcement system collected approximately $12 billion, up from $8 billion in 1992, an increase of 50 percent. Paternity establishment rose to nearly 1 million in 1996, almost doubling, from 516,000 in 1992. The new child support enforcement measures included in the new welfare reform law are projected to increase collections by billions over the next 10 years.

Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Contact: Michael Kharfen, (202) 401-9215