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The IRS just released a new draft version of Form 941 yesterday which is effective 6/21. The final version will not be available until July 12th or later, after which software providers will finalize the necessary changes.

Who are they going to blame when they owe more/smaller refund next year? Send them to the IRS's Eligibility Assistant to make their own decisions: https://www.irs.gov/credits-deductions/advance-child-tax-credit-eligibility-assistant And, if you're worried about blame, document your interaction with them.

I know of a form 7200 (the supposed quick payment of 941 credits) sent in early Feb was just processed a few days ago... 7200 was supposed to be processed and the money paid out in a matter of weeks, not months. This goes along with my personal belief never to rely on a form being processed, and with that in mind, if there is ever a credit on a form, always use the refund, never relying on the tax agency to timely or properly apply to a later return.

Chances are 100% that the IRS will duplicate the 1099misc and 1099NEC. Subcontractors will received a letter or bill from the IRS about the second form eventually.

Tom, what if this really does happen? (And you're right, it absolutely could). So we advise our customers to opt out and not receive the advance child credit. They are going to be furious when they realize they could have received the advance credit PLUS the full credit for 2021... And guess who they are going to blame for this advice??

I have a client who wants to opt out in lieu of making estimated tax payments.

Instructions for tracing are on the IRS page that follows. https://www.irs.gov/newsroom/questions-and-answers-about-the-first-economic-impact-payment-topic-f-payment-issued-but-lost-stolen-destroyed-or-not-received

As to not getting the second payment, many were sent debit cards and mistook them for junk mail and discarded them. It's possible this is the case with your clients, so perhaps starting a trace is the way to go. Just a thought.