Helping your clients track missing CTC checks

Are you receiving frequent calls from panic-stricken clients this month? If you are, most likely they’re asking the same two questions:

• Why didn’t I get a Child Tax Credit check in August?
• Where is my check, and how can I trace it?

It’s true: Some clients have not received monthly checks for August. As a tax accountant, it is your job to help your clients track their payments online and receive the money as soon as possible.
Before you take any action to help your clients, let’s first discuss the possible reasons behind the delay of paychecks:

• Some clients have to wait longer for their checks due to a few IRS glitches.
• Some checks are postponed because of an issue with the IRS sending paper checks, which take longer to get delivered than a direct deposit.
• The IRS may not have the latest mailing address or bank details of your clients.
• The direct deposit payment is still under process.
• The U.S. Postal Service has not released the mailed check.
• Your clients have an unresolved tax identity theft issue. In this case, your clients can expect to receive the total amount after filing their tax returns in 2022.
• Your clients’ 2020 tax returns are still under process. The IRS is overwhelmed with a backlog of tax returns. The IRS may not know that your clients are eligible for a tax credit, especially if their information has changed, or they had a baby recently.

Should your clients be worried?

You can tell your clients that they have nothing to worry about. Even if they haven’t received last month’s check, the IRS will send half of the overall amount in five payments.

If your clients think they have not received their checks due to unpaid federal debts, they are mistaken. Inform your clients that they will still receive payments if they are eligible for them.

Usually, your clients receive tax credit checks on the 15th of every month. August was an exception, as the payment was scheduled to arrive on the 13th of this month.

You can ask your clients to check the Child Tax Credit Update Portal and view their processed payment history. They can view their pending payments from there.

If your clients have not received the amount they are likely to get, they can see if the Update Portal has any information about it. If the portal shows that the payment was credited, find out if there is any mistake in your client’s address and banking information.

Remember, your clients can track their payments online only after registering with their IRS username and ID.me account information. If your clients are first-time users, you have to upload their photo IDs to the portal to avoid fraudulent activity.

You can ask your clients to check their bank account if they have opted for direct deposit. Ask them if there is any deposit labeled ‘CHILDCTC.’

The bank won’t have any processing information if the check has not been deposited into the account.

If there is an error, double-check the bank details your client shared with the IRS.

How much can your clients expect to receive from the IRS?

Month	5 years or below (max amount per child)	6-17 years (max amount per child)
August 13	$300	$250
September 15	$300	$250
October 15	$300	$250
November 15	$300	$250
December 15	$300	$250

How can you help your clients file a payment trace for their missing checks?

You can help your clients to file a payment trace for their missing Child Tax Credit checks.

Help them fill out Form 3911 and mail it to the IRS. This will help them locate their funds.

If parents filed tax returns jointly, then both of them have to sign Form 3911. It may take around 60 days to get a reply from the IRS.

Parents need to specify what they are looking for in the ‘inquiry field’ of the form. Codes and abbreviations are not allowed. Parents have to mail the form to the address where they usually send their tax returns.

How soon can your clients request a payment trace?

Payment mode	Time elapsed since IRS sent money
Direct deposit	5 weeks
Check mailed to your current/registered address	4 weeks
Check mailed to your forwarded address	6 weeks
Check mailed to your overseas address	9 weeks

Ask your clients to have patience since the IRS has already started working on the missed Child Tax Credit checks. If they have too many questions, you can check out the IRS website for the answers. You can use the Update Portal to check your clients’ payment history, eligibility and personal details.