IRS prevails in Tax Court on Child Tax Credit and Earned Income Credit Claims

In a recent U.S. Tax Court decision, the IRS prevailed over a taxpayer who argued that the IRS erroneously disallowed claims of certain tax credits on his original and amended tax returns. The credits included the Child Tax Credit (CTC), Additional Child Tax Credit (ACTC) and Earned Income Tax Credit (EITC). Regarding the CTC and ACTC, the IRS disallowed the credits because the taxpayer failed to include taxpayer identification numbers for his children. Regarding the EITC, the court ruled that the taxpayer’s spouse didn’t have a Social Security number and wasn’t eligible to obtain one when the taxpayer filed his original and amended returns. (TC Memo 2023-99)