Fraud and Advance Child Tax Credit

[Elfbecker]

I have several clients victims of identity theft that did not receive the Advance Child Tax Credit, but the IRS thinks they did and sent them the ACTC Letter.  They have already filed the Form 14039, but the IRS is so behind they haven't processed or cleared their accounts.  How am I going to reconcile their tax return?  Attach a statement and further delay their refund?

[Just-Lisa-Now-]

Have them create an IRS account and see what that shows as them having recieved...could it have gone to a different bank account?  Ive seen reports of people with letters that dont match what IRS shows on their actual account. 

IRS is going to have to come up with a plan for dealing with these kinds of situations.

[Elfbecker]

The IRS accounts show the funds going to accounts not owned by my clients - presumable owned by the fraudster.  It's a mess.

[IRonMaN]

Depending on where they are sitting for refunds, I would be tempted to file the return showing they received the payments.  Then after a bit file an amended return explaining the situation.  The return is going to be in limbo forever either way trying to get the correct refund, so you would at least get them some of their money now.

[Elfbecker]

True.  I also have one client that doesn't even have kids that got the ACTC letter.  I can't make the IRS move that paperwork any faster, but it is certainly frustrating.