Letter 6475

[emcwillard]

I have a few clients that have called to tell me they received an IRS letter 6475. The issue is that the amount on the letters do not match what was actually deposited into their accounts. The letters are stating they received the full amount when they did not and in some cases it is staying they received less then what they actually received. Some of this clients I have already submitted their returns, They provided me proof of their 3rd stimulus payments. I am at a loss of what to do... Should I amend? should I let the IRS amend? Should I wait for a letter from the IRS saying they made changes and appeal? Any advice would be nice.

[The-Tax-Lady · Accepted solution]

If they received more than the letter states, there's no payback or penalties on the EIP payments so I wouldn't be worried about it in that instance.

If they received less, according to the letter, but they actually received the correct amount, I wouldn't worry about that either.

If you claimed the RRC for the 3rd EIP on the TY2021 return, the IRS will be verifying all of those and adjusting the return accordingly. The only issue there is, if the IRS is reporting an amount on the 6475 that is more or equal to the amount you claimed for the RRC. In that case, you wait till the return processes and the Taxpayer receives the refund, if any, before responding to a notice of a change to the tax return, which the Taxpayer should receive. If the IRS does not send a notice, just reduces the refund, then you can amend the return with the bank statement showing the EIP deposit.

[jeffmcpa2010]

Are you saying you already filed tax returns with Child Tax Credit, without finding out about the advance payments? Or that you filed them based on the deposits in their accounts without seeing what the letters said?

There have been news articles where the IRS admitted a bunch of the letters were wrong and suggested the taxpayer set up an IRS account and double check that way for the ACTC information. 

I had not done many yet, but I was kind of under the impression that IRS was matching the amount sent as ACTC to the 8812 as filed. But maybe they are not doing it fast enough to reject the return, but will be checking before processing refunds.

[The-Tax-Lady]

The 6475 letter reports how much the individual received for the 3rd EIP payment.

Letter 6419 reports the Advanced Child Tax Credit paid and yes, some are wrong.

[rbynaker]

The IRS is going to go by what they think they sent, regardless of what your client may or may not have received.  If that's different than what was claimed on the return they will "correct the math error" so you likely do not need to amend.

This whole thing is another mess and is eerily indicative of today's political climate when both sides can't even agree on what the facts are!  Maybe the IRS sent it out, maybe it was lost/stolen, maybe the client got it, maybe an ex-spouse got it, who knows!

For anything already filed, I would wait for a letter from the IRS (or for the clients to get their refund if they are expecting one--they probably are, who files early in the season if they owe money, right!?!)  Kick this can down to the third week of April (or take some time off and start reviewing these things in May!)

Rick

[Just-Lisa-Now-]

Im having lots of couples that filed MFJ coming in and only one of them got the 6475, but I know if one of them got the full amount, they both did.

I did have one guy the 6475 was in his name only, but it had the total of both what he and his wife got, they were in the phase out range, so it was weird amount ....his 6475 showed 1560, but he only got 572 direct deposited, her IRS account showed that she had 988 sent, but they cant find record of that anywhere, so I showed the full 1560 on the return and sent in a Form 3911 to see where her money went!

[rbynaker]

I'll admit, I'm so brain dead at this point that I just go look up which letter is which every time somebody mentions it.  We're talking about EIP here (I think), not ACTC.

[The-Tax-Lady]

I'm retired now, for the most part, just family & Very close friends with simple returns, but I can appreciate how you must be feeling and the reason I retired 🙂 Hang in there.

[The-Tax-Lady]

The 6419 ACTC Letter instructs the taxpayer to call the IRS at 800-908-4184, if the amount received does not match the letter amount, BEFORE filing their tax return.

[portillo4]

I have a married filing joint.  They state that they only received $750  Letter 6475 $2100 but they never received that amount.  They are under the impression that once they file they will get the remaining amount.  When I enter their numbers and enter the impact letter their return is less than if I file without entering information on letter.  I am so confused. Why is refund amount less if they didn't receive the entire $2100.  Can anyone help answer my question

thanks