How does DCS distribute IRS tax-refund offset collections?

Between October 1, 2008, and June 30, 2010, DCS applied IRS tax-refund offset collections to the debt owed to the custodial parent before state debt. During this period, DCS could apply IRS tax-refund offset collections to both current support and arrears. Beginning July 1, 2010, DCS applies tax-refund offset collections to child support obligations as it did before October 1, 2008. This means that DCS will only apply tax-refund offset collections to back support owed, and these collections are always applied first to debt owed to the state.

Despite recent record improvements in paternity establishment and child support collections, much more needs to be done to ensure that all children born out-of-wedlock have paternity established and that all non-custodial parents provide financial support for their children. Currently, only about one-half of the custodial parents due child support receive full payment. About twenty-five percent receive partial payment and twenty-five percent receive nothing.

In an effort to strengthen and improve state child support enforcement activities, several federal laws were passed, including a national new-hire reporting system. These laws required states to pass uniform interstate child support laws, automate enforcement actions, and provide for tougher noncompliance penalties, such as driver's license revocation.