Reaching Out to Preparers

Outreach and education is an important part of our tiered strategy to improve the accuracy of EITC claims. It is an important tool to help you prepare accurate EITC claims. We focus on providing you with educational resources to help you understand tax law and your due diligence responsibilities.

Pre-Filing Season Letters to Preparers

Another tier in our outreach and educational efforts is letters directed to specific preparers. We look at the number of returns with a high likelihood of EITC errors completed by the same preparer. And, we send letters to preparers who have a high number of these returns. 

The letters:

  • state we believe the preparer completed inaccurate EITC claims,
  • highlight the consequences of preparing inaccurate EITC claims,
  • outline EITC due diligence responsibilities,
  • provide tips on preparing accurate returns and point to online EITC tools, information and other resources, and
  • inform preparer that we are monitoring their future returns.

 

Return Preparers who complete highly questionable EITC claims may receive one or more of the following letters: 
 

 

 

 

  • Letter 5025, You May Have Violated Tax Law by Preparing Inaccurate Returns. Primary issue identified is qualifying children who don't meet the relationship or residency requirements and questionable income and expenses on Schedule C. 

 

 

 

 

 

 

I Received a Warning Letter; What Should I Do?

If you a letter from us, don’t ignore it. Review your office procedures to make sure you meet all four due diligence requirements.If you receive this letter, we will continue to monitor the EITC returns you prepare. If the quality of the returns you prepare doesn’t improve, you may be subject to special follow-up procedures mentioned below in “Additional Steps.” This includes the possibility of an on-site audit or a Due Diligence Compliance Audit.

Additional Steps

We send the letters to help preparers complete accurate EITC claims in the future. We do not assess penalties against preparers at the time we send the letters, but we do monitor EITC returns filed by these preparers to ensure accuracy improves. If there is no improvement, we may follow-up with phone calls, additional letters, educational visits or due diligence compliance audits. See "Additional Resources" below for more information on these steps.

Additional Resources 

 

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Page Last Reviewed or Updated: 27-Jan-2015