If you received a 6470 letter in the mail from the US Internal Revenue Service regarding a “math error” regarding your 2020 tax return, you may owe more money on your next return.
NS 6470 characters Tax filers were notified of misinformation about COVID-19 stimulus check amounts and sent out early in the summer. According to the IRS, the recipient may receive a CP11, CP12, or CP13 notice.
Letters were sent to people claiming recovery rebate credit on their 2020 tax return. According to the IRS, the credit allowed people who didn’t receive their first or second stimulus checks to claim their returns and receive them as part of a tax refund. This also applies to those who did not receive the full amount in their incentive checks.
FILE – Internal Revenue Service (IRS) Headquarters in Washington, DC, US
“The IRS is currently correcting more errors on returns and issuing more math error notices than in previous years. Specifically, on returns filed by taxpayers, from calendar year (CY) 2020 to July 15, 2020, 628,997 math error corrections were made,” according to Taxpayer Advocate Service (TAS).
According to TAS, the IRS had to fix about 9 million math errors on returns this year, of which about 7.4 million were related to the first two stimulus checks.
“Because of the pandemic and we have had to adjust the whole process to how quickly people have to pay because of the law,” an IRS spokesperson told Granthshala TV stations.
“The advanced tax credits were paid immediately, which would normally take weeks, even months, to be processed before being sent out,” the spokesperson added.
In addition, the IRS sent nearly 5 million incorrect math error letters, omitting a 60-day time period by which tax filers were able to correct whatever mistakes were made.
Because of the failure to notify some 5 million recipients of the deadline by which they can correct the math error, the IRS is allowing an additional 60 days from the time they receive their second notice for correction.
Meanwhile, after millions of people received confusing letters regarding their stimulus checks and tax returns, the IRS received a record number of calls from customers trying to resolve errors in 2021, according to a news release.
“During the 2021 filing season, the IRS received 167 million telephone calls — four times more calls than during the 2019 filing season. IRS employees could not keep pace with this massive volume of calls, resulting in the worst service ever. ” IRS said.
For anyone who has questions regarding the math error sheet, visit www.irs.gov.
The IRS also distributed a third round of child tax credit payments to millions of families in September as part of an expanded program included in President Joe Biden’s $1.9 trillion COVID-19 relief package.
The third round of payments was made by direct deposit or paper check starting Wednesday, September 15. Eligible parents received $300 per child six or younger and $250 per child aged 6 to 17.
Child Tax Credit payments will be distributed monthly for the remainder of the year. According to the IRS, remaining payments are scheduled for October 15, November 15, and December 15.
related: $3,000 Child Tax Credit: Here’s What Parents Need to Know
Parents can visit the IRS Child Tax Credit Update Portal to view the status of their payments.
The monthly payment covers half of the total tax credit as described in the current plan. The other half would be applied as a credit on households’ 2022 tax returns, with any remaining money after taxes distributed as the other payment. Families can also opt out of monthly payments and receive a larger lump sum amount during tax season.
Eligible parents can receive up to $3,000 per child ages 6 to 17 and up to $3,600 per child under age 6. The amount decreases gradually for high-income parents, starting at $75,000 for individuals and $150,000 for married couples.
And since finances are always changing, to avoid overpaying on their next tax return, parents can withhold advanced payments using an online portal three days before the first Thursday of the next month, according to the IRS.
If families earn too much to qualify for the sweet tax credit, they can still receive a $2,000 credit for their children if their income level is less than $200,000 for individuals and $400,000 for married couples.
However, because the increased credit is based on tax returns for 2019 and 2020, families that are earning more money in 2021 should be aware that if they are overpaid by the IRS, they will be eligible for tax season returns the following April. During that money will have to be returned.
Granthshala Business contributed to this report.