Child Tax Credit frauds are on the rise in the U.S. Numerous cases of such fraud are reported in many states. Under the Child Tax Credit program, a tax credit is partially refundable and is provided to families with one or more dependents by the U.S. government.
The frauds happen when someone else claims a designated claimant’s tax credit. To prevent such crimes, claimants of this tax credit must follow certain rules. In case a claimant receives a message, that his or her dependant’s tax credit has been claimed by another person right after they had e-filed for the return, the claimant must immediately check whether the correct data of their dependant has been filed by them. The claimant may have entered the wrong spelling of their dependent and that is enough opportunity for fraudsters.
The Internal Revenue Service which administers and manages this program is restricted by the privacy laws of the federal government to disclosing the identity of the fraudster, IRS is only authorized to inform the claimant involved of the fraudulent refund, if the claimant is registered as a taxpayer either primary or secondary.
How To ReclaimChild Tax Credit
Child Tax Credit fraud can occur when the identity of a dependent gets stolen, in such cases, the claimant must visit the IRS official website, and verify the matter at the Taxpayer’s Guide to Identity Theft. The eligible claimant must file for a paper return, and mail it to the IRS. Following this, the IRS will look into the case and check, which might delay but refund the dependent’s child tax credit once proven the fraud. The claimant must also maintain communication if contacted by the IRS.
