The Child and Dependent Care Tax Credit (CDCTC) became refundable only for Tax Year (TY) 2021, under the American Rescue Plan Act of 2021 (ARPA), as part of the COVID-19 pandemic assistance programs. The changes to the CDCTC were temporary, applying only to TY 2021. The short-term nature of this program limits the IRS’s ability to calculate improper payment estimates. To generate an improper payment estimate, the IRS needs to conduct comprehensive audits over a large sample of tax returns, requiring at least three years’ worth of data to ensure accuracy. However, because ARPA’s changes to the CDCTC were limited to TY 2021, there isn’t enough time or data to create an estimate before the refundable nature of this program ends. Accordingly, the credit has no basis for improper payment estimates. In August 2022 Treasury determined that due to the short-term nature of these programs, quantifying the amount and rate of improper payments, assessing the root cause, and developing corrective action plans to reduce payment errors in the future would provide minimal value and be an ineffective use of resources. Therefore, for its COVID-19 pandemic relief programs Treasury decided it would not report an improper payment estimate either in its Agency Financial Report or on paymentaccuracy.gov. However, these programs will remain on the three-year risk assessment rotation.