> An obvious pandering for reelection in which Republicans will look
> Scrooges when they have the power to repeal it but they don't really
> From the Web:
> Question: Is the IRS up for the challenge?
> Answer: It should be, but there are concerns. Many tax experts and some
> lawmakers question whether the IRS, with its out-of-date computer
> systems, shrunken work force and its myriad of other duties, will be
> fully able to deliver periodic child credit payments.
> Setting up a new program to deliver regular payments to taxpayers who
> must meet complex eligibility requirements to qualify for the child
> credit is a challenge for an agency that is not used to sending out
> periodic payments. The IRS says that to facilitate advanced payments of
> the credit, it is having to build a system to compute and recompute
> payments as taxpayers provide new information. Such a system must also
> be able to issue and track payments, as well as reconcile all payments
> sent out to each taxpayer during the year with the taxpayer's credit
> taken on the tax return. The agency also needs to develop a program to
> flag returns that don't accurately include all advance payments received
> during the year.
> Another issue that the IRS will have to deal with is how to minimize the
> potential for fraud when it comes to refundable child tax credits. For
> example, the IRS estimates that in 2020 it improperly paid $4.5 billion
> in such refundable credits.
> Nevertheless, despite all these challenges, IRS Commissioner Charles
> Rettig says that the tax agency can handle the job. And, so far, the IRS
> appears to be on track to start delivering the payments.
> Question: Will the higher child tax credit and advance payments
> eventually be made permanent?
> Answer: Yes, if Democratic lawmakers get their way. Remember that the
> child tax credit expansions apply only for 2021. Congressional Democrats
> would like to see the enhancements made permanent, touting the impact
> that a higher and fully refundable child tax credit would have on
> reducing child poverty in the United States. For example, Congressman
> Richard Neal (D-MA), the Democratic Chairman of the House Ways & Means
> Committee, said the 2021 child tax credit enhancements are unlikely to
> go away, and he has unveiled proposed legislation to permanently extend
> those expansions. President Biden has also jumped on the child tax
> credit extension bandwagon. His proposed American Families Plan would
> extend the expanded credit through 2025, though he would make full
> refundability, and we assume advance payments, permanent.
> If the 2021 child tax credit expansions are not made permanent, or at
> least temporarily extended past 2021, then the rules that applied for
> 2020 returns will kick back in beginning in 2022.
> more at: