Reaching Out to Preparers
Outreach and education is the first step in our strategy to improve the accuracy of EITC claims. It is our most important tool to help you prepare high quality EITC claims. Our focus is letting you know about available resources and helping you understand your due diligence responsibilities.
Pre-Filing Season Letters to Preparers
The last step in our outreach and educational part of our tiered EITC Preparer Compliance program 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:
- Acknowledge that we believe the preparer submitted inaccurate returns
- Pinpoint the primary issues identified as questionable on the returns
- Highlight the consequences of filing inaccurate EITC claims
- Outline EITC due diligence responsibilities
- Provide tips on preparing accurate returns and points to online EITC tools, information and other resources
- Inform preparer that we are monitoring their future returns
Return Preparers who file returns with EITC errors or questionable claims may receive one or more of the following letters: (all are in pdf format):
- Letter 4833, a large number of 2012 tax returns you prepared with Earned Income Tax Credit (EITC) may have errors. We will monitor returns prepared during 2014 If those returns don't improve significantly in quality, you may be subject to special follow-up procedures mentioned below in “Additional Steps During the Filing Season,” including the possibility of an on-site audit.
- Letter 5025, You may have violated tax law by submitting inaccurate returns. Primary issues identified are qualifying children who don't meet the relations or residency requirements and questionable income and expenses on Schedule C
- Letter 5025-C, You may have violated tax law by submitting inaccurate returns. Primary issue identified is questionable income and expenses on Schedule C
- Letter 5025-D, You may have violated tax law by submitting inaccurate returns. The Primary issue identified is questionable qualifying children with disabilities.
- Letter 5025-Q, 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
The Spanish translations of the letters listed below are not available at this time. The listed links are only placeholders until the translations are complete. We expect the translations by September of 2014.
We send the letters to help preparers file accurate EITC claims in the future. We do not assess penalties against preparers because of the letters, but monitor returns filed by these preparers to ensure accuracy improves. If there is no improvement, we may follow-up with phone calls, additional letters or due diligence visits. See the additional resources links below for more information on the additional steps.
See more information on the consequences of non-compliance.
Additional Resources Links
Educational Opportunities for Avoiding EITC Error
This Return Preparer Toolkit has a wealth or resources:
- An online training course, the Due Diligence Training Module, to help you refresh your EITC tax law and due diligence knowledge is available in English and Spanish. This course may qualify for continuing education for you.
- Our Schedule C and Record Reconstruction Training module helps you meet your due diligence requirements while preparing returns with self-employment income and provides tips for helping your clients reconstruct their business records.
- Our popular Due Diligence Videos help you avoid common EITC error situations and are fun to watch.
- Attend our EITC Due Diligence seminar at the Nationwide Tax Forums.
- Visit the Frequently Asked Questions part of this site. Your colleagues have asked IRS numerous questions related to EITC. Our answers will guide you to the right answer for similar situations.
- And more, follow the headings on the left navigation bar for more tips and tools to help you avoid EITC error.
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Page Last Reviewed or Updated: 09-Jul-2014