American Rescue Plan Act: Assessment of Processes to Identify and Address Improper Child and Dependent Care Credit Claims

The Commissioner, Wage and Investment Division, should update processes to *****2***** from Form 2441 the care provider’s **2********************2*******************, and the amount paid to the care provider.

The Commissioner, Wage and Investment Division, should update paper verification processes to generate errors in the Error Resolution System when the ****************2****************, or amounts paid to the care provider are missing

The Commissioner, Wage and Investment Division, should revise Form 2441 to include checkboxes to note whether dependent care expenses are for a spouse or dependent who is physically or mentally incapable of caring for themselves or if special deemed earned income rules apply.

The Commissioner, Wage and Investment Division, should develop a process to identify tax returns with adult **********2********** **************************2*****************************. These tax returns should be considered for selection for post-refund compliance reviews.

The Commissioner, Wage and Investment Division, should work with the Department of the Treasury, Office of Tax Policy, to obtain the legal authority to disallow the Child and Dependent Care Credit (CDCC) when the primary or secondary taxpayer is identified by an ***2*** Individual Taxpayer Identification Number (ITIN) on Form 2441