Returned ALL Advanced Child Tax Credit checks - IRS issued LTR 6419 with amounts

[pm-zz]

Client received paper checks from the IRS related to the advance child tax credit. 

As instructed on the IRS FAQ - all checks were notated with VOID and returned to the appropriate address as shown for individual state.   Plan on entering ZERO on the tax return as received but I called the IRS number listed on the LTR 6419.   Don't waste your time with questions there, the rep was just reading something written out.   Has anyone else had clients who returned checks, yet still received a LTR with an amount as if it was paid?

[BobKamman]

Returning paper checks to IRS?  He asked for it.  Deserves whatever happens.  

[TaxGuyBill · Accepted solution]

I've seen another similar situation.  I suspect that the IRS has not processed the returned checks yet (and possibly their computer system might not be ideally set up for processing the returned checks).

Warn your client it is seems quite likely the IRS will greatly delay the processing of this tax return.  Personally, I would tell them not to expect it to be processed for at least 6 months, and be happy if it is done before that.

[Just-Lisa-Now-]

I would have never told them to mail back checks like that, regardless what the FAQ says. 

Should have put the money in an account and used it to pay it back if needed.

[Accountant-Man]

I'd also tell your client that you hope he owes tax; then, he doesn't have to wait for a refund or bug you for his refund whereabouts.

[jeffmcpa2010]

"Should have put the money in an account and used it to pay it back if needed."

This is what I did as well, recommended to open a new account and put the deposits there. That way the $ will be ready when the time comes to write the check.

[singh]

A lot of my clients rely on what I suggest them to do when they have issues. I am always very careful what I suggest them to do or not to do. I agree with all the answers given for this issue. Returning check to IRS is the last thing anyone would ever want to do.

This thread should be a lesion learned. Thank you for posting the issue.

[pm-zz]

Below is exactly what the IRS instructs taxpayer to do with checks received incorrectly.   There is nothing wrong or incorrect with what they did.   The IRS is a MESS - I guess this is just one more thing they'll have to figure out(i.e. screw up) this tax season.   As long as they keep letting unproductive and unsupervised employees "work" at home - these delays/errors/etc. will continue.

IRS States below:

A1. You should return the payment as soon as possible by following the instructions below.

If the payment was a paper check and you have not cashed it:

• Write "Void" in the endorsement section on the back of the check. Mail the voided Treasury check to the appropriate IRS location listed below. Don't staple, bend or paper clip the check.
• Include with the voided check a separate, brief, written explanation stating the reason for returning the check, including whether you want to unenroll from future monthly advance Child Tax Credit payments. 

[dkh]

Did the client get 'proof of mailing' when they returned those checks - probably won't make any difference in resolving things faster but one never knows

[hankinstax]

Totally concur.  This one is going to take "a while".  IRS has not opened envelopes containing checks for all types of payments.

[qbteachmt]

Did the client change their status online, to update the IRS that they didn't want/qualify for the payments? The IRS can't act on something they are not made aware of. A lot of people think this money just miraculously appeared, instead of setting/updating their own profile/status.

[BobKamman]

That was my thought also.  Did the client get Covid, standing in line at the Post Office to get proof of mailing?  And of course, it doesn't prove he mailed a check, right?  I mean, who would believe anyone would do that?