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Millions of eligible families did not receive monthly child tax credits, while more than 1 million ineligible taxpayers did – Brospar Daily News

The IRS failed to pay 4.1 million eligible taxpayers $3.7 billion in monthly child tax credits last year, according to an audit released Tuesday by the Treasury Department’s Inspector General for Tax Administration. Meanwhile, the IRS paid more than $1.1 billion to 4.1 million eligible taxpayers. The audit found 1.5 million taxpayers who should not have received monthly instalments. Even before any payments were sent last year, the IRS has repeatedly said that launching a new program to provide monthly payments to tens of millions of households will be a challenge. The payments stem from a temporary enhancement of the Child Tax Credit, which Congress announced Part of the $1.9 trillion U.S. rescue package bill passed in March 2021. The credit increases to $3,600 for children under age 6 and to $3,000 per person for one year for a low- and moderate-income family between the ages of 6 and 17. Plus, more low-income parents are eligible for full refunds as lawmakers refund them in full. In addition, half of the credit will be paid in monthly installments for the first time from July to December, while parents can claim the other half when they file their application to pay their 2021 taxes this year. The IRS has just four months to set up a system for paying parents. As of December, the agency had issued nearly 217 million payments totaling $93.5 billion. The inspector general’s review covers nearly 179 million payments made between July 2021 and November 2021, totaling more than $76.7 billion. It also found some bugs related to incorrect bank account information. The Inspector General’s Office said establishing the monthly payment system in such a short time was a “significant undertaking”. The vast majority of payments are correct. When taxpayers file their 2021 tax returns this year, incorrect payments are often corrected. The IRS sent families a settlement letter as required by the legislation, which identified the amounts they received in monthly installments that they would need to use when preparing their tax returns. The Office of the Inspector General plans to continue monitoring reversals of incorrect payments. The Office of the Ombudsman General made several recommendations to the IRS, including the need to take action to prevent taxpayers from receiving additional improper payments, notify taxpayers that their installment payments may have been sent to other accounts they may have, and verify that the Incoming documents from third-party sources Based on the audit, the IRS agreed with these recommendations.

Last year, the IRS failed to pay 4.1 million eligible taxpayers $3.7 billion in monthly child tax credits. Audit release By the Treasury Department’s Inspector General for Tax Administration on Tuesday.

At the same time, the IRS sent more than $1.1 billion to 1.5 million taxpayers who were not supposed to receive monthly installments, the audit found.

Even before any payments were made last year, the IRS has repeatedly said that launching a new program to provide monthly payments to tens of millions of households will be a challenge.

The payment stems from a temporary enhancement to the Child Tax Credit, part of the $1.9 trillion US Rescue Program Act passed by Congress in March 2021. The credit increases by $3,600 per child under age 6 and $3,000 per child for low- and moderate-income families ages 6 to 17 for one year. Plus, more low-income parents are eligible for full refunds as lawmakers refund them in full.

Additionally, half the credit is paid in the first monthly instalment between July and December, while parents can claim the other half when they file their 2021 taxes this year.

The IRS has just four months to set up a system to send payments to parents. As of December, the agency had issued nearly 217 million payments totaling $93.5 billion.

The inspector general’s review covers nearly 179 million payments made between July 2021 and November 2021, totaling more than $76.7 billion. It also found some bugs related to incorrect bank account information.

The Inspector General’s Office said establishing the monthly payment system in such a short time was a “significant undertaking”. The vast majority of payments are correct.

Taxpayers often correct incorrect payments when they file their 2021 returns this year. The IRS sent families a settlement letter as required by the legislation, which identified the amounts they received in monthly installments that they would need to use when preparing their tax returns.

The Office of the Inspector General plans to continue monitoring the reversal of incorrect payments.

The Office of the Inspector General made several recommendations to the IRS, including the need to take action to prevent taxpayers from receiving additional improper payments, notify taxpayers that their installment payments may have been sent to other accounts they may have, and verify that the 3rd party incoming files – party sources before use.

According to the audit, the IRS agreed with the recommendations.

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