What To Do In Case Of Child Tax Credit Fraud?

Tax Credit
Tax Credit

Families with dependents are provided with payments by the Child Tax Credit program. There have been recurring cases of Child Tax Credit fraud over the years. Where an undeserving person has claimed someone actually with a dependent’s credit. To prevent such fraud from happening, credit claimants must follow the course of action.

When a person applies for a claim, that person must put the correct and appropriate information of their dependent. Failing to do so, even in the case of an incorrect spelling of the dependent’s name in the e-file can lead to tax credit fraud. The claimant is immediately notified by a message, of someone else claiming for the credit.

The IRS is restricted from disclosing the identity of the fraudulent claimant by federal privacy laws to the deserving individual. In case of the victim being listed as a primary or secondary assessee, the IRS is authorized to disclose the fraudulent tax returns. 

How To Reclaim Your Dependent’s Child Tax Credit?

To reclaim a dependent’s Child Tax Credit in case of fraud, one must follow certain procedures. A claimant must file a paper return affirming his or her eligibility to claim for their dependents. The claimant must formulate their child tax return for their dependent and mail the IRS the complete tax return.

They might also have to prove their eligibility to claim for the Child’s Tax Return by producing the dependent’s detailed paperwork proving that the child is under the claimant’s custody. Following this, the IRA will analyze the fraudulent claim, however, this might delay the tax refund. The claimant must comply and communicate with the IRA for a rapid solution to the problem.