TaxPersonal TaxRed faced US tax officials admit child benefit cock-up

Red faced US tax officials admit child benefit cock-up

Problems with software cause child benefit headache for US revenue service

The US revenue is rushing out an extra 350,000 child benefit payments of $300
each after discovering some of its tax returns failed to capture the correct
information for triggering payouts,
webCPA.com
reported
.

The Internal
Revenue Service
admitted some of its tax software, primarily used by tax
professionals, did not capture the proper information needed for issuing the
stimulus payment.

It said it has worked closely with the two affected software vendors, and
they have reported to the IRS that their software has been corrected. They are
Petz Enterprises’ professional and online software, and CCH’s ProSystems fx Tax
software and online CompleteTax software.

The IRS is taking extra steps to identify affected taxpayers and send them
separate cheques to cover their qualifying children. The IRS emphasised that the
corrected cheques will be mailed automatically, and taxpayers don’t need to call
or take any additional steps.

Embarrassingly, it also admitted it had deposited about 1,500 tax rebates and
economic stimulus payments in the incorrect bank accounts. The IRS is working on
a case-by-case basis with taxpayers and banks to fix the problem.

Further Reading:

Read the
webCPA.com story

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