Yesterday the IRS updated its Fact Sheet on the Child Tax Credit with additional information on reconciling the credit. The IRS took this step after acknowledging that the letter it had been encouraging taxpayers to rely on could be wrong.
“Review your payments in the Child Tax Credit Update Portal to ensure the payment was not returned. If you did not receive the payment and the payment was not returned, you may request the IRS to trace the payment. If it is determined the payment was not received or was returned to the IRS, IRS records will be updated, and you can exclude the payment from the aggregate amount of advance Child Tax Credit payments you report on your tax return.
Adding to the confusion is the fact that many taxpayers don't fully understand the distinction between “the portal” and “IRS Online Account.” That is not surprising given that they use the same access credentials. Adding to the confusion is that the “online account transcript” is distinctly different than the “tax transcript.
The portal can be used to determine if a payment that was not received was returned to the IRS and could possibly be used to determine if the information in Letter 6419 is correct.
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