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Married Filing Separate IRS removing allocated wages from return

jen idaho
Level 1

I have a client that received a letter for 2021 for a MFS tax return in a community property state.  Wages have been allocate 50/50 to each spouse.  The IRS letter has removed the wages from spouses income which results in a disallowed child tax credit.  The form 8958 was correctly included with return.  Why would IRS remove the wages from the husband allocated 50/50 as correctly reported?

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2 Comments 2
sjrcpa
Level 15

Because they have trouble processing, or maybe noticing, Form 8958.

The more I know, the more I don't know.
Terry53029
Level 14
Level 14

Looks like you are due for a discussion with the IRS 😁. Good luck

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