Today, the IRS released IRS Tax Tip COVID Tax Tip 2022-03 advising that the IRS has started issuing information letters to Advanced Child Tax Credit (ACTC) recipients and recipients of the third Economic Impact Payment (EIP 3).

People receiving either of the following letters should keep them and provide them to your tax preparer to avoid costly mistakes and processing delays.

IRS Letter 6419, Advanced Child Tax Credit (ACTC), will include the TOTAL amount of ACTC received and the number of children used to calculate the advanced payments. The amount of ACTC received must be reconciled with the amount of ACTC your family is actually allowed, when your 2021 tax return is prepared.

IRS Letter 6475, Your Third Economic Impact Payment (EIP 3) will help recipients determine if they are entitled to, and should claim, the recovery rebate credit on your 2021 tax return.

Both letters are important. You should receive one, or both, of your letters within the next 2 months. Please keep these letters with your important tax documents, W-2s, K-1s, 1099 DIV or INT, etc. and give them to your tax preparer when your are ready to prepare your 2021 tax returns.

Feel free to ask general questions.