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

Related Articles

HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor