IRS Fixing Hurdle for Second Parents Claiming Child Tax Benefit

The IRS is close to announcing how it will allow a second parent to file electronically to claim a child tax benefit—a win for custodial parents.

While the IRS isn’t ready for an official announcement, “we are in the red zone on solving it,” IRS Commissioner Danny Werfel said, speaking Thursday to press at the UCLA Tax Controversy Conference.

For parents who share custody of a child but live apart, only one can claim the tax benefits. Often the parent who the child doesn’t live with will rush to file electronically to get the payment.

Because the IRS processes the ...