Addressing Complex and Inconsistent Earned Income Tax Credit and Additional Child Tax Credit Rules May Reduce Unintentional Errors and Increase Participation

The Commissioner, Wage and Investment Division, should modify the language in soft notices sent to individuals who claim a multiple-use child’s TIN to instruct individuals to amend their return if they determine the child’s TIN was used in error.

The Commissioner, Wage and Investment Division, should establish processes to notify individuals who claim a multiple-use child’s TIN to the potential theft of their child’s identity and provide actions they can take to report the theft and protect their child’s identity from future misuse.

The Commissioner, Wage and Investment Division, should establish processes to identify potential fraud schemes associated with the multiple use of a qualifying child’s Taxpayer Identification Number on tax returns to claim a refundable tax credit, and address the individual(s) or entities who are promoting this fraud.