The start of the new year is also the start of tax season. During January is when tax documents will start arriving via your inbox or mailbox. In addition to your usual tax documents, you should be on the look out for two new items this year. The IRS will be sending two different letters relating to the 3rd stimulus payment and the advance child tax credit payments if you received either of these during 2021.
The first letter mentioned will be letter 6475. This letter will contain the total amount of the 3rd stimulus payment if one was issued. The IRS is offering the Recovery Rebate Credit again this year for those that were entitled to more stimulus than received during 2021. The IRS is planning on sending the letter early this year. Please submit this letter with your tax documents to your tax preparer.
The second letter mentioned will be letter 6419. At the end of 2021 the IRS has already started sending out this letter to the families who received the advance child tax credit payments. This letter will include the amount of advance payments the IRS issued to you. If you were eligible for the child tax credit but did not receive the advance payments you will be able to claim the credit on your 2021 tax return. Please submit this letter with your tax documents to your tax preparer.
Please be advised that Treasury officials have recently announced that due to funding cuts and staffing shortages, taxpayers should be prepared for delays in processing returns and refunds. Officials claim that the quickest way to have a return processed is by filing early and filing electronically.
Should you have questions or concerns, please do not hesitate to contact one of our trusted tax advisors.