IRS Notice 2021-15 informs taxpayers that pre-tax child care can be carried forward to 2021 at the election of employers. I have a client that has this exact same situation because he was unable to use any of his amount in Box 10 from his W-2 form. His employer told him the company was changing the plan to allow for a carry forward of the W-2, Box 10 amount. When I enter his carry forward on Form 2441, Part III, Line 14, the return passes error and review check in ProSeries. I e-filed, and Intuit accepted the return.

The next morning, I have a rejection notice. It tells me that for each Care Provider entered there must be a corresponding amount paid. The problem is there were no child care expenses paid in 2020 due to the pandemic.

Has anyone else run into problems with IRS Notice 2021-15 when the client is eligible to carry forward the Box 10 amount from the W-2 form, but gets rejected by the IRS? How are we supposed to report this? If so, would you be so kind as to share your experience with it in e-filing a return? I would very much appreciate how other preparers are handling this situation. Thank you.