U.S. Treasury Will Accept NOCs and Automated Enrollments for Upcoming IRS Advance Child Tax Credit Payments
The U.S. Treasury’s Bureau of the Fiscal Service will accept Notifications of Change (NOCs) and Automated Enrollments (ENRs) for Advance Child Tax Credit (ACTC) payments that are made by Direct Deposit.
In the ACH Network, NOCs are used to identify incorrect information contained within an ACH payment and provide correct data to be used in future payments; ENRs are used to enroll account holders at financial institutions with an agency of the federal government to receive future payments by ACH.
ACTC payments are set to begin with Direct Deposits that will have an effective date of July 15, 2021, with recurring monthly payments continuing through the end of 2021. In addition to July 15, Direct Deposits are expected to have effective dates of Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15. The Fiscal Service will discontinue acceptance of NOCs and ENRs on Dec. 16, 2021, after the issuance of the last round of ACTC payments.
If ACTC payments are continued into 2022, Nacha will provide updates as they become available.
The Direct Deposits for the ACTC will use the Company Name “IRS TREAS 310” and the Company Entry Description “ CHILDCTC”. Note the two spaces at the beginning of the description. The description will not include the garnishment exemption coding of “XX” because the payments are not exempt from garnishment under the authorizing legislation.
Unlike previous economic impact payments and regular tax refunds, Nacha expects that the IRS will use a 1-day settlement period for these ACTC payments. For your planning purposes, anticipate receiving files on the day prior to settlement. For files received before 5 p.m. (local time) on the day before settlement, funds must be available to consumers by 9 a.m. (local time) on the settlement date.
Additionally, the IRS’s Child Tax Credit Update Portal is live, through which beneficiaries can provide or update banking information to receive payments by Direct Deposit. Banking information provided through the portal will be applicable beginning with the August payment. The portal can be accessed via https://www.irs.gov/credits-deductions/child-tax-credit-update-portal.