The Internal Revenue Service announced Wednesday (December 29, 2021) that it will start sending out information letters to recipients of the advance Child Tax Credit and of the third round of Economic Impact Payments that were made in January 2021.
Taxpayers will be required to reconcile any advanced CTC received and the payments with their 2021 tax returns, which are currently expected to be due April 18, 2022. Letter 6419 for advanced CTC recipients will include the total amount of credits that the taxpayer received. The credits were sent out monthly starting last June 15, and were calculated based on information from taxpayers’ previous returns, so the taxpayer have received too much – or too little.
IRS Notice 1444-C will inform taxpayers of the amount of the 3rd stimulus payment they received. This will also need to be reconciled on your 2021 tax return.
We will be requesting that taxpayers give us these documents, so we can accurately prepare your return.
