Advisory from the IRS to Preparers…
With preparations for the next tax season starting there is something important you should be aware of:
The IRS will be sending out two letters to taxpayers in January:
- Letter6419 – Advance Child Tax Credit Payments
- Letter6475 – Economic Impact (stimulus) Payment
It is important that your clients retain these letters. Entering incorrect advance child tax credit or economic impact payment amounts will cause delays in tax return processing and the issuance of refunds.
Having your clients retain these letters and provide them to you is the most efficient way for you to obtain the economic impact payment and advance child tax credit payment dollar amounts you will need to prepare their tax returns. The alternative ways of either you or your clients getting this information electronically is likely to be a much more involved process.
I hope this information will be of some use during the upcoming filing season.