News Letter

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Tax Litigation

We advise our clients through every aspect of civil tax controversy matters, including tax audits and settlements; the Offshore Voluntary Disclosure Program and related IRS procedures involving the proper reporting of foreign financial accounts; Domestic (non-offshore) Voluntary Disclosure Program, corporate and business tax issues; including payroll and employment taxes; IRS collection alternatives, including Offers in Compromise and Installment Agreements; and tax litigation matters in the United States Tax Court and United States District Court.



2021 Child Tax Credit

Under the American Rescue Plan Act (ARPA), P.L. 117-2, the IRS must make 2021 periodic advance child tax credit payments to taxpayers up to the “annual advance amount.” These payments — up to $300 per month per child under age 6 and up to $250 per month per child age 6 through 17 — will be paid in equal amounts and made no earlier than July 1, 2021, and no later than Dec. 31, 2021.

For tax year 2021 only, ARPA increased the child tax credit amount to up to $3,000 for each qualifying child between age 6 and 17 at the end of the 2021 tax year, and $3,600 for each qualifying child under age 6 at the end of the 2021 tax year. ARPA also made the child tax credit for 2021 fully refundable if the taxpayer (or spouse, on a joint return) has a principal place of abode in the United States for more than one-half of the 2021 tax year.

Economic impact payment theft

Although most economic impact payments, also known as stimulus payments, to individuals have been issued, their security remains a concern, the IRS said. Most of the payments are made electronically by direct deposit to taxpayers’ bank accounts, but even these can be diverted by thieves, the IRS noted. Accordingly, taxpayers should be wary of text messages, phone calls, or emails asking about bank account information. One such ruse requests verification of account information. The IRS suggests deleting such emails without clicking any contained links or even opening them, reminding that the Service does not initiate contact by phone, email, text, or social media asking for Social Security numbers or other personal or financial information related to economic impact payments.

Economic impact payments paid by check can also be stolen from mailboxes, the IRS noted. Suspected losses can be reported to postal inspectors.