Form 8812 & Form 5695 IRS Issue

[FMES]

Notice to Other Practitioners regarding Tax Credits

One of my taxpayers recently received an IRS 2023 CP12 Notice indicating their requested refund was reduce due to an error on Form 8812, which if fact was correctly reflected on the taxpayers' tax return.  The IRS had eliminated the taxpayers' Additional Child Tax Credit due to their incorrect processing of the Residencial Clean Energy Credit (Form 5695 line 15) in connection with Form 8812.  

It took a few calls to the IRS Tax Practitioner Hotline to find an agent who had previous knowledge/experience with of this error, but once found, the agent was able to make changes immediately to the tax return in the IRS files (it might have been via an amendment, the agent did not clarify) and indicate the taxpayers would receive their full refund as reflected on the original tax return within four weeks. The IRS was also sending a new notice reflecting this change.

If you run to this issue, I propose you try asking the agent early in the call if they are aware of this issue to avoid my experience of agents' silent disappearance from the call without actually hanging up.

[PATAX]

Thanks for the information.