Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Child tax credit denial 2021

Jack56
Level 1

Greetings!

Had  MFJ client who filed on  extension 9/15/22. IRS just sent letter Child tax credits for 2 kids age 11 & 8 denied ($4000.00). Gross income $338,000, pretty typical for most years. No IRA contributions, Client says no Pre payment of child tax credit for either child received.

Any ideas as to why denied?

Jack [removed]

Michigan

0 Cheers
9 Comments 9
sjrcpa
Level 15

What reason was given in the letter?

"Client says no Pre payment of child tax credit for either child received." Did he check bank account(s) for direct deposits?


Ex-AllStar
Accountant-Man
Level 13

a) Are you SURE that they didn't get prepaid CTC during 2021?

** I'm still a champion... of the world! Even without The Lounge.
Jack56
Level 1

Thanks for reply, client did not file personal 2020 return until 10 15 21, always owes,  he has never had direct deposit from IRS and is a paper filer. he said he never received any check from IRS.

0 Cheers
Jack56
Level 1

IRS letter says 8812 was in error, says TP received advance tax credits that were not reconciled.

TP says never received any funds.

0 Cheers
Jack56
Level 1

Having client review records again, thanks for the help.

0 Cheers
BobKamman
Level 15

For a joint return, it's always a good idea to make sure you are communicating with both clients.  Does the wife have her own bank account, by any chance?  

ljr
Level 8

Client swears up and down did not receive. Even if they never had direct deposit from the IRS the money was direct deposited into their account. They never looked at their statements and the money was there. Everytime on of my clients got that letter the IRS was correct. EVERYTIME. They need to check all bank accounts. 

BobKamman
Level 15

Weren't there some people who gave IRS their bank information for deposit of the EIP's?  And then I think some people who were getting federal checks -- Social Security, pensions or veterans benefits -- received direct deposits to those accounts, because Treasury (not IRS) already had the information.   

CMcCullough
Level 3

If client really did not receive the payment, you can do a trace.  This has the tracing information, though is out of date on how to check online to see if client received payment.  The CTC portal is no longer running, so a check to their transcript or to their online irs.gov account, should suffice.   https://www.taxpayeradvocate.irs.gov/news/tas-tax-tip-did-you-have-an-advance-payment-of-the-child-t...