It seems the IRS has delayed some returns with the Form 8812 Child Tax Credit due to the taxpayers incorrectly filling out Part I.
Part I is completed only when there are children on the return with ITINs (Individual Taxpayer Identification Number). The IRS is finding that some taxpayers are filling out Part I when their dependents have SSNs not ITINs. Returns are also being delayed when Part I is not being completed when there are dependents with ITINs.
Part I on Form 8812 asks that the taxpayer verify that each child with an ITIN meets the “substantial presence test.” Basically that they are not a non-resident alien. To meet the substantial presence test, a child identified with an ITIN generally must be physically present in the United States on at least: 31 days during 2012, and 183 days during the 3-year period that includes 2012, 2011, and 2010, counting:
- All the days your child was present in 2012, and
- 1/3 of the days your child was present in 2011, and
- 1/6 of the days your child was present in 2010.
Bottom-line, if your dependents have valid social security numbers do not fill out Part I on form 8812. If they have ITINs, you must complete Part I. Get it reversed and your return will be delayed while the IRS checks out your return more closely.