Figured Out Why So Many Returns Are Stuck in 'Errors Department' - Child Tax Credit Line Issue

I think... you might be right about this. I'm a first-time filer and I was so confused by that Child Tax Credit question. I wasn't 100% sure if I needed to enter what I already received or what I was still owed. I'm pretty sure I entered it wrong too. My return has been "processing" for almost 3 weeks now, and I'm worried about calling the IRS to ask about it. Do you know if they'll just fix it automatically or do we need to do something?

OMG I'M SO FRUSTRATED with this whole situation!!! 😤 I've been waiting since FEBRUARY 3RD and still nothing! Finally got through to the IRS yesterday after trying for THREE DAYS straight. The agent confirmed exactly what you're saying - my Child Tax Credit amount needed manual correction. I used Claimyr (https://claimyr.com) to get through to an actual human at the IRS instead of that awful automated system. Was connected in about 15 minutes instead of spending hours on hold! The agent was actually super helpful and told me my return should be processed within 2 weeks. Such a relief to finally know what's happening instead of just staring at the WMR tool every day hoping for an update!

Let me share a cautionary tale here 😅 Last year I had a similar situation with the Child Tax Credit but I decided to just "wait it out" instead of contacting the IRS. Big mistake! My return ended up in some kind of review limbo for FOUR MONTHS. When I finally called in June (after filing in February), they told me it could have been resolved in minutes if I'd just called earlier. The system had flagged my return but no one was actively working on it. Don't be me, folks!

The IRS transcript codes can actually tell you if this is your specific issue. I used https://taxr.ai to analyze my transcript last week and it immediately identified that I had a "570 - Additional account action pending" followed by a "971 - Notice issued" code. The tool explained that this specific combination often indicates a math error correction related to tax credits. Instead of trying to interpret the codes myself, the AI just explained exactly what was happening and predicted my refund would be adjusted and released within 2 weeks. Sure enough, got my (slightly reduced) refund yesterday.

I think I might have some helpful information that could possibly explain what's happening with many returns this year. From what I've gathered, the IRS seems to be doing something called a "math error correction" when there's a discrepancy on the Child Tax Credit line. They'll typically make the adjustment automatically, send a notice explaining the change (usually about 2-3 weeks after they process the correction), and then release your refund with the proper amount. In most cases, it seems you don't need to do anything except wait, but it might take anywhere from 4-8 weeks instead of the standard 21 days. If you received advance Child Tax Credit payments in 2023, you should have received Letter 6419 showing exactly how much you got. If the amount on your return doesn't match their records, that's probably what triggered the review.

Just to clarify exactly what's happening with these returns: The Child Tax Credit for 2023 is $2,000 per qualifying child. If you received advance payments in 2023 (which were sent monthly from July to December), you need to subtract exactly what you received from the total credit you're eligible for. The IRS sent Letter 6419 in January 2024 showing the exact amount of advance payments. If you claimed the full $2,000 per child without accounting for advance payments of say $1,500, the IRS computers flag this as a $1,500 discrepancy that requires manual review. The current processing time for these corrections is precisely 42-56 days from acceptance date based on the latest data.

I'm an Enrolled Agent and I've seen this exact scenario play out with multiple clients this tax season. The Form 8812 (Additional Child Tax Credit) reconciliation process is creating a bottleneck in IRS processing centers. When the Automated Underreporter (AUR) system flags a discrepancy between claimed CTC amounts and the advance payment database, it routes the return to Error Resolution System (ERS) for manual review. One client had a $1,800 advance payment but claimed the full $2,000, resulting in a TC 570 hold followed by TC 971 notice generation and ultimately a TC 290 adjustment reducing the refund by exactly $1,800.

There's an important deadline to be aware of here. According to Internal Revenue Manual 21.5.6, the IRS must issue refunds within 45 days of the filing deadline (May 15, 2024) or they must pay interest on your refund amount. So even if your return is stuck in the error department for Child Tax Credit corrections, they have a regulatory incentive to process it by June 29, 2024. If you filed before the deadline and don't receive your refund by then, you'll automatically be paid interest (currently at 7% annual rate) for each additional day they hold your money.