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Schedule 8812, Child Tax Credit Attached to Form 1040 or Form 1040A

The IRS is alerting tax preparers about possible delays in processing returns with the Child Tax Credit because of errors.

Monday the IRS sent this alert to tax professionals...

We have observed instances in which the Schedule 8812 is attached to form 1040 and 1040A and is not filled out correctly. These instances are causing downstream processing delays. We have experienced the following two conditions: (1) The Schedule 8812 Part 1 checkboxes A, B, C, and D are checked when taxpayers list a dependent child with an SSN qualifying for child tax credit and (2) The Schedule 8812 Part 1 checkboxes A, B, C, and D not being checked when taxpayers have a child with an ITIN (Individual Taxpayer Identification Number) on Form 1040 and 1040A line 6c identified as qualifying for the child tax credit in column 4.

The Schedule 8812 instructions direct the taxpayer to:

"Use Part I of Schedule 8812 to document that any child for whom you entered an ITIN on Form 1040, line 6c; Form 1040A, line 6c; or Form 1040NR, line 7c; and for whom you also checked the box in column 4 of that line, is a resident of the United States because the child meets the substantial presence test and is not otherwise treated as a nonresident alien."

We are working to implement Business Rules to reject these incorrectly completed returns with a date to be determined.

In the interim, we request that software packages include an alert to help preparers identify inconsistencies when completing the Schedule 8812 and that communication be provided to the practitioner community to avoid delays in processing returns.

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