Level 2

Child tax credit denial 2021

Forum|Forum|3 years ago
December 7, 2022
3 replies
14 views

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

Stand-Alone

This topic has been closed for replies.

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?

The more I know the more I don’t know.

J

Jack56Author

Level 2

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.

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.

J

Jack56Author

Level 2

Having client review records again, thanks for the help.

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?

C

CMcCullough

Level 4

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 This has the tracing information, though is out of date on how to check online to see if client received payment.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-tax-credit-issued-to-you-but-did-not-receive-it/

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