Question
Married Filing Separate IRS removing allocated wages from return
I have a client that received a letter for 2021 for a MFS tax return in a community property state. Wages have been allocate 50/50 to each spouse. The IRS letter has removed the wages from spouses income which results in a disallowed child tax credit. The form 8958 was correctly included with return. Why would IRS remove the wages from the husband allocated 50/50 as correctly reported?
