IRS warns some taxpayers may have received incorrect Child Tax Credit letter

The IRS is sending letters to millions of parents who received the advance Child tax credit payments last year, asking people to refer to these forms — letter 6419 — when filling out their tax returns. But on Monday, the agency warned that some of these letters could include incorrect information.

The misinformation could have a serious impact on the finances of some families, as the IRS advises taxpayers to be very careful this year to ensure that their tax returns are accurate. The agency is still catching up with 6 million individual returns filed in 2021; many of them were marked for review because of the mistakes taxpayers made in reporting how much they received in government incentive payments or other tax credits.

• 36 million families face January without a tax credit check for children: “There will be times when I won’t eat”

The tax refund is often the largest check a family receives each year, with payments in 2021 averaging about $ 2,800. This means that a lot is at stake if a family misrepresents the amount they received in their CTC advance payments. Withholding processing at the IRS could cause refunds to be delayed for weeks or even months.

The IRS said it is unclear how many people received erroneous letters, but said it could be a small group of taxpayers who moved or changed their bank accounts in December. In these cases, the CTC Checks may not be delivered or direct deposits may have been declined from the bank where an account was closed, Ken Corbin, IRS taxpayer experience manager, said Monday in a conference call with reporters.

“Then the letters may not reflect what the taxpayer actually received,” Corbin said.

Taxpayers who are concerned that the letter they have received are incorrect should consult IRS.gov and log in to their account through the site, he said. The IRS.gov website will have the correct information that the taxpayer should use on their tax return, he noted.

“We want taxpayers to have the information they need to file an accurate statement,” Corbin said.

New website for the tax credit for children

Also Monday, the federal government launched a revamped website to help people who were eligible for the extended child tax credit claim the second half of the payment they had to pay.

The site, ChildTaxCredit.gov, includes a new tool that directs taxpayers to filing options, eligibility information, and instructions on how to obtain credit, according to the Treasury Department. Both virtual and face-to-face support will be provided in several languages.

“A very frustrating presentation season”

Potentially erroneous letters could add to what IRS Commissioner Chuck Rettig warned could be “a very frustrating filing season” for taxpayers and tax preparers. It also encourages taxpayers to follow these tips to ensure that their returns are properly processed:

1. File electronically.

2. Filing as soon as possible after the IRS begins accepting tax returns on January 24th.

3. Apply for direct admission.

“If taxpayers need a refund quickly, we urge them not to file them on paper,” Rettig said.

Submitting an inaccurate statement, such as guessing how much you received from CTC prepayments, could “create a costly delay,” he added.

If taxpayers heed this advice and there are no red flags on their tax return, they should receive the refund within 21 days, according to the IRS. When asked how long it might take to get a refund if, for example, someone shows up on paper or has an error in their returns, Corbin said, “Right now we’re not really sure.”

Reporting accurate data on CTC prepayments is important because the enhanced tax credit was paid half in advance, and the other half must be paid through taxpayer refunds after filing your tax return. 2021.

For example, families with children under the age of 6 are entitled to $ 3,600 in tax credits, with $ 1,800 paid in monthly checks from July 2021 to December 2021. The remaining $ 1,800 will be claimed on your tax return. 2021. But if a family incorrectly states that they received $ 1,500 in CTC payments last year and then claims $ 2,100 on their tax return, more than they are entitled to, the IRS will mark the refund for its review, delaying its repayment.

Corbin said he believes the wrong letters were sent to a small group of taxpayers instead of millions of parents. “The online portal is correct and we encourage you to consult IRS.gov,” he said.

—With reports from the Associated Press.

In:
• internal revenue service
• Tax credit for children