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But, the report said, problems continue and although the quality review process has been expanded, some changes could “inadvertently discourage tax examiners from identifying questionable documents.”

Under federal law, the additional child tax credit reduces the tax low-income families pay by $1,000 for each child under 17. When the claim is greater than the amount of taxes owed, the IRS sends the filer a check for the difference. Little effort has been made to verify the existence of the claimed children.