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 4833, You May Have Prepared Inaccurate Returns for Your Clients.

 Letter 4833 en Español (doc version) Letter 4833 en Español (pdf version)

 

Letter 4833-A en Español (doc version) Letter 4833-A en Español (pdf version)

 

  • 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. 

Letter 5025 en Español (.doc format) Letter 5025 en Español (.pdf format)

 

  • Letter 5025C, You May Have Violated Tax Law by Preparing Inaccurate Returns. Primary issue identified is questionable income and expenses on Schedule C.

 Letter 5025C en Español (.doc format) Letter 5025C en Español (.pdf format)

 

  • Letter 5025D, You May Have Violated Tax Law by Preparing Inaccurate Returns. The primary issue identified is questionable qualifying children with disabilities. 

Letter 5025D en Español (.doc format) Letter 5025D en Español (.pdf format)

 

  • Letter 5025Q, You may have violated tax law by submitting inaccurate returns. Primary issue identified is questionable qualifying children who don't meet the relations or residency requirements.

 Letter 5025Q en Español (.doc format) Letter 5025Q en Español (.pdf format)

 

  • Letter 5138, Return Preparer EITC Client Audit Notification

Letter 5138 en Español (.doc format) Letter 5138 en Español (.pdf format)

 

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 

 

Return to Preparer Compliance main page

 

 

Page Last Reviewed or Updated: 08-Oct-2014