(RightWing.org) – The new tax season started on Monday – and taxpayers are already facing confusion after the IRS admitted it sent out the wrong information. Now, they’re scrambling to make sure everyone gets the right information.
Last December, the IRS started sending out letters explaining how Expanded Child Tax Credits work and asked taxpayers to keep the letters for reference when filling out their 2021 tax returns. However, on January 24, they announced the letter contained information that could be inaccurate.
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sending to taxpayers about the amounts they received on advance payments of the expanded Child Tax Credit could have outdated information.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
On Monday, the IRS updated its Child Tax Credit website and now is telling taxpayers to refer to the website when filling out their returns – not the letters they received. IRS official Ken Corbin said they’re “still looking into” reports that the letters are incorrect, and insisted “we do not believe this is a widespread problem.” However, tax advisers say they’ve been warning the IRS about the issue amid worries this could be a difficult tax season.
Professional groups, including the National Conference of CPA Practitioners, have serious concerns about this year’s tax returns. Among other things, they say the IRS shouldn’t be sending out automated penalty notices when there’s still a backlog of millions of unprocessed returns. Adding more confusion and incorrect information could result in many more Americans being hit with fines because the IRS isn’t doing its job properly.
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