Taxpayer Advocate Service: NTA Blog: Erroneously claiming certain refundable tax credits could lead to being banned from claiming the credits (March 29, 2021)

The National Taxpayer Advocate Blog has published an article, titled “Erroneously claiming certain refundable tax credits could lead to being banned from claiming the credits,” which discusses how taxpayers who incorrectly claimed tax credits may get banned for two years by the IRS. The abstract is as follows:

Did you know the IRS has the authority to ban a taxpayer from claiming the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), the American Opportunity Tax Credit (AOTC) and the credit for other dependents (ODC) for two years if the IRS determines that the taxpayer improperly claimed the credit “due to reckless or intentional disregard of rules and regulations”? The ban can last for ten years if the credit was claimed fraudulently. The IRS determines whether to propose a ban as part of its audit of the taxpayer’s tax return.

To view the full article, click here: “Erroneously claiming certain refundable tax credits could lead to being banned from claiming the credits.”

Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.