The IRS established a tiered EITC Compliance Program to ensure preparers’ proper due diligence; the agency begun inspecting preparers who continue to have problems verifying clients’ eligibility for claiming the EITC.
“We look at the characteristics of returns claiming the EITC, the CTC and the AOTC completed by the same preparer and focus on questionable claims,” reads the IRS Web page “EITC & Other Refundable Credits.” The IRS has also alerted preparers who filed two or more tax year 2015 e-filed returns claiming the EITC without submitting a Form 8867, Paid Preparers’ EITC Checklist. The penalty is $505 per return. “The IRS has been scaring the industry for the last three years, beating tax professionals with a big stick,” said EA Kerry Freeman at Freeman Income Tax Service in Anthem, Ariz. Most preparers seem to turn mostly to one safeguard: “For the few taxpayers I help with these reporting responsibilities … documentation, documentation, documentation,” said John Dundon, an EA at Taxpayer Advocacy Services in Englewood, Colo. Read Article: https://www.accountingtoday.com/news/new-due-diligence-requirements-add-to-tax-season-burden Comments are closed.
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September 2017
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