IRS sending letters to CTC and EIP payment recipients
On December 22, 2021 the IRS announced that it will begin sending letters to recipients of both the Advance Child Tax Credit (CTC) payments that were sent out in 2021 and the third round of Economic Impact Payments (EIP) that were sent out starting in March 2021 and continuing through December 2021.
Letter 6419 will be sent to recipients of the CTC beginning in late December 2021 and continuing into January 2022.
Letter 6475 will be sent to recipients of the third EIP in late January 2022.
Both of these credits will be reconciled on the 2021 individual income tax returns that will be filed in 2022. Taxpayers will receive additional CTC and EIP when they file their 2021 tax return if they didn’t receive the full amount to which they were entitled. Depending on income, some taxpayers may have to repay part of the CTC if they received more than they were entitled. There’s currently no provision in the law requiring repayment of the third EIP for taxpayers who received more than they were entitled based on their 2021 tax returns.
In order for us to accurately prepare your 2021 tax return, and in order for the IRS to expediently process your 2021 tax return, we will require that you provide copies of Letters 6419 and/or 6475 that you may receive.
Check the IRS Child Tax Credit Update Portal for amounts of payments here: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal.
Use the IRS “Get My Payment” tool to check the status of your third EIP here: https://www.irs.gov/coronavirus/economic-impact-payments.