IRS Accidentally Sends $1 Billion in Child Tax Credit to the Wrong People
(ConservativeInsider.org) – When President Joe Biden signed the American Rescue Plan Act on March 11, 2021, many Americans were excited about the expanded tax credits that would let them claim an additional $1000 to $1600 per child in 2021 (depending on the child’s age), some of which they could receive in advance. However, a recent audit report detailed how many of those payments went to the wrong people, some went to the wrong banks, and others were improperly documented.
On Wednesday, September 21, the Inspector General for the Tax Administration released a new report detailing the accuracy, or lack thereof, of the child tax payments. By December 2021, the federal government sent out $93.5 billion in these credits in the form of 216.9 million deposits. However, $1.1 billion worth were incorrectly sent to people ineligible for the credit, such as those with deceased children, parents of adults, or someone who claimed a child that was already claimed on someone else’s tax return.
The Internal Revenue Service failed to send child tax credit payments to millions of households, report finds https://t.co/MTME6HORb8
— The Wall Street Journal (@WSJ) September 27, 2022
In addition, the report revealed the IRS failed to send 8.3 million payments to 4.1 million taxpayers, which would add up to around $3.7 billion. On top of all of this, the review showed that about $4.2 million were “erroneously sent” to 523 different bank accounts.
The report comes after months of GOP representatives highlighting the numerous cases of fraud that came out of programs funded by the American Rescue Plan. While the IRS has acknowledged its mistakes, it is still working to reconcile the issues it created. If you believe you were not paid correctly, you can visit the IRS’ Child Tax Credit website to see if you still qualify.
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