In a pivotal announcement today, IRS Commissioner Daniel Werfel assured the public that adjustments to the Child Tax Credit (CTC) and any additional refunds owed to working families under the Tax Relief for American Families and Workers Act will be swiftly processed and issued within a matter of weeks.
During a hearing with Ways and Means Chairman Jason Smith (MO-08), Commissioner Werfel emphasized the agency's commitment to expeditiously implementing the directives outlined in the tax package, which overwhelmingly passed the House with 84 percent of the vote.
Chairman Smith pressed Commissioner Werfel on the timeline for implementing the adjustments to the CTC, to which Werfel responded, "We gave you a range of six to twelve weeks required for implementation from the point of enactment. But I’m committed to work diligently to make sure we’re closer to the six-week end of that range than the twelve-week."
Impact on Taxpayers
Acknowledging concerns regarding the impact on taxpayers, Commissioner Werfel confirmed that only approximately 10 percent of households would see modest adjustments to their tax refunds due to changes in the child tax credit. This assurance, coupled with the smaller universe of affected taxpayers, provides the IRS with the ability to swiftly process refunds.
Chairman Smith also sought clarification regarding the necessity for taxpayers to file amended returns to obtain the adjustments outlined in the bill. Commissioner Werfel unequivocally stated, "Taxpayers DO NOT need to file amended returns to obtain the adjustments the bill makes."
This announcement brings relief to many parents who may have already filed their taxes, as they will not be burdened with the task of refiling once the tax bill becomes law.
The IRS's confirmation of these streamlined processes underscores its commitment to efficiently implementing legislative changes while minimizing the impact on taxpayers. With the assurance of Commissioner Werfel, families can expect to receive their much-needed refunds in the coming weeks, providing crucial financial support during these challenging times.
