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IRS warns about child tax credit scams days after checks are sent out

IRS SHUTDOWN CNN 010319
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Just days after the IRS sent millions of families checks as part of the enhanced child tax credit, the agency is warning parents about scammers trying to take the money.

“Be alert to criminals who ask you, by phone, email, text – or even on social media, to verify your information so you can get advance Child Tax Credit payments,” the Internal Revenue Service warns.

The agency reminds people it does not reach out to taxpayers by email, text messages or social media channels to request personal or financial information.

It also does not leave pre-recorded or threatening messages. The agency also does not ask to get something in return, such as a gift card, wire transfer or cryptocurrency.

Starting July 15, families started receiving the first of six monthly payments of up to $300 per child. It’s an advance on what families receive as part of their yearly child tax credit.

The change in payment structure was made as part of a coronavirus relief bill passed earlier this year with the hope that families could use the monthly payments now as the economy is recovering from the pandemic.

The IRS used information from 2019 and 2020 tax returns to make payments. Millions of families received the payments as a direct deposit in the same bank account where stimulus checks were sent earlier this year and last year.

For those who believe they are eligible for the advance payments of the child tax credit and did not receive any money, head to IRS.gov/childtaxcredit2021 for more information.