The new tax season began on Monday, and taxpayers are already befuddled after the IRS acknowledged to sending out incorrect information. They’re now scrambling to ensure that everyone receives the correct information.
The IRS began sending out letters in December describing how the Expanded Child Tax Credits work and requesting that taxpayers preserve the letters for reference when filing their 2021 tax forms. On January 24, they announced that the letter contained potentially erroneous information.
The letters that the IRS has been sending to taxpayers about the amounts they received on advance payments of the expanded Child Tax Credit could have outdated information. https://t.co/sU6sYl95Ft— Accounting Today (@AccountingToday) January 26, 2022
The IRS revised its Child Tax Credit website on Monday, and now advises individuals to fill out their taxes using the internet rather than the letters they received. Officials from the IRS, including Ken Corbin, said they’re still looking into complaints that the letters are wrong, but they don’t believe it’s a widespread issue. Tax professionals, on the other hand, claim they’ve been telling the IRS about the problem because they’re worried about a difficult tax season.
The National Conference of CPA Practitioners, for example, is extremely concerned about this year’s tax filings. They claim, among other reasons, that the IRS should not be sending out automated penalty warnings while millions of unprocessed returns remain unprocessed. Because the IRS isn’t performing its job properly, adding extra confusion and erroneous information might result in many more Americans getting fined.