LETTER: Child Tax Credit Headaches Plague IRS

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LETTER: Child Tax Credit Headaches Plague IRS

The following press release was published by the U.S. Congress Committee on Ways and Means on Nov. 3, 2021. It is reproduced in full below.

LETTER: Child Tax Credit Headaches Plague IRS

Reps. Brady, Kelly urge IRS to address ongoing access, missing payment, and fraud issues

Nov. 1, 2021 - Blog - Correspondence - Oversight - Press Releases - Worker and Family Support

Months after Democrats began distributing cash-for-kids welfare checks, the rushed Child Tax Credit (CTC) online payment website is still plagued by missing payment and fraud issues. Top Republican on the Ways and Means Committee Rep. Kevin Brady (R-TX) and top Republican on the Oversight Subcommittee Rep. Mike Kelly (R-PA) today wrote a letter to IRS Commissioner Rettig calling for resolution.

“Approximately 4 million taxpayers who received a CTC payment via direct deposit in July were sent a paper check in August due to a programming glitch. This has led to numerous problems with individuals not receiving the paper checks."

“The IRS announced that it had resolved a ‘technical issue’ that caused ‘fewer than 2% of CTC recipients not to receive their September payment. While this statement is framed as if it is a small issue, the IRS stated that about 35 million families received payments. Two percent of 35 million equals about 700,000 families. That is not a small problem."

“Our offices have received numerous calls about these problems and of course the IRS remains unable to provide timely customer service to resolve these problems."

KEY TAKEAWAYS:

* Reps. Brady and Kelly urged top Biden Administration officials in letters in April to address the rampant fraud and improper payments wasting billions of taxpayer dollars.

* Studies show that Democrats’ expanded child tax credit only reached 720,000 of the approximately 7 million kids eligible in July.

Source: U.S. Congress Committee on Ways and Means

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