6419 Letter

[HOPE2]

Thank you so much for taking time to answer.

I have seen other tax software has some option to enter the real amount which client got in her bank account regarding Advanced child credit for example:

IRS Letter 6419

Bank Statement Deposit

Other

If there is a difference between the letter received and the amount deposited, for my client the amount which received more than the letter 6419, where ProSeries asks on line B2 in schedule 8812 I do not see other option to enter correct amount.

[dkh]

IRS did issue some 6419 letters with the incorrect amount. Sounds like your taxpayer is one of those lucky ones to receive an incorrect letter.

I suggest your client set up an IRS account to see what amount is shown.  My guess is it will match the actual amount received.    If for some reason they can't or won't set up the IRS account then, if it were me, I'd enter the actual amount received based on deposits on the 8812 where it asks for the amount from the letter.  

Hope this helps.

[rbynaker]

I guess this comes down to your risk tolerance.  We're talking CTC so due diligence is required, right?

IMO based on the facts presented, "the information provided by the taxpayer or a third party appears to be inconsistent" (if this sounds familiar that's because we just tripped Form 8867 #4).

I'm not one to jump in front of the bus and check "No" on #4a which asks "Did you make reasonable inquiries to determine the correct, complete, and consistent information?"  So I would make some reasonable inquiries, as dkh said, have them create an account and see what their account shows.  If they can't do that it might make me grumpy but then they're going to have to give me a list of bank deposits and dates of what they did receive.  If that's what I think they were supposed to receive based on prior year's income then I'm probably comfortable enough to take a tax position.  I have two data points that align.  I, of course, document this in my file and answer Yes to #4a and #4b on the 8867.

Rick

[HOPE2]

Thanks a lot for being here. I already asked them about what they see on IRS account. The amount in IRS account and the letter are same. But client received more in bank account. You mean at this situation box 4a &4b should be NO in Due Diligence?