Hot Topics for Return Preparers

Scroll down for news on these Hot Topics:

  • The EITC and Refundable Credit Office is at the Nationwide Tax Forums
  • IRS issuing penalty notices to tax preparers for missing Forms 8867;
    El IRS emitirá avisos de penalidades a preparadores de impuestos por omitir los formularios 8867
  • IRS Sending Letters to and Visiting Tax Preparers Filing Questionable EITC Claims
  • Due Diligence Audits Start Mid-November
  • IRS EITC Compliance Strategy Brings in Injunction
  • IRS to Penalize Preparers Who Fail to Submit  or Attach the Form 8867
  • Can’t Find Your Favorites on EITC Central—We Moved Our Site
  • EITC and Due Diligence Made Easy DVD
  • Make a Complaint Against a Tax Return Preparer
  • Don't Miss Any EITC News

The EITC and Refundable Credit Office is at the Nationwide Tax Forums

We are presenting seminars at the 2014 Nationwide Tax Forums.  Read more here.

IRS Issuing Penalty Notices to Tax Preparers for Missing Forms 8867

Tax preparers who do not send Form 8867 with EITC returns are subject to a $500 penalty per return.

IRS sent warning Letter 4989 to preparers who did not comply for tax year 2011, and, starting this month, IRS will be sending nearly 800 of those preparers notices of proposed penalties for continued failure to attach the form for tax year 2012 returns. More information on Form 8867.

El IRS emitirá avisos de penalidades a preparadores de impuestos por omitir los formularios 8867

Los preparadores de impuestos que no presentan el Formulario 8867(en inglés) con declaraciones que reclaman el EITC están sujetos a una penalidad de $500 por declaración. El IRS envió la carta de aviso 4989 (en inglés)a los preparadores que no cumplieron en el año tributario 2011, y, a partir de este mes, el IRS enviará notificaciones de penalidades propuestas a cerca de 800 de esos preparadores por la negligencia repetida en adjuntar el formulario en las declaraciones del año tributario 2012. Obtenga detalles acerca (en inglés).

Sending Letters to and Visiting Tax Preparers Filing Questionable EITC Claims

We are sending letters during November and December of 2013 to preparers filing questionable EITC claims. The letters:

  •  Pinpoint the primary issues identified on the returns,
  •  Talk about the consequences of filing inaccurate claims for EITC, and
  •  Lets the preparer know we will continue to monitor the types of claims for EITC they file.


For more information and examples of the letters, see our section, Reaching Out to Preparers

We are also starting our visits to preparers to discuss EITC Due Diligence. The visits begin in November and continue during the filing season. For more information on the visits, see our section, Visiting Preparers Filing Highly Questionable Returns.

Due Diligence Audits Start Mid-November


We are starting the Due Diligence audits based on 2012 returns  in mid-November and audits based on 2013 returns start February of 2014.  Both continue through April 2014. See our page on Auditing for Due Diligence for more information.

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IRS EITC Compliance Strategy Brings in Injunctions


The IRS recently got another  EITC Due Diligence injunction that prohibits preparers from preparing any further federal income tax returns. The cumulative injunctions represent over $105 million dollars in harm to the government. Find more information on the process and the preparers involved here.

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Can’t Find Your Favorites on EITC Central—We Moved Our Site


We moved EITC Central and your Tax Preparer toolkit to a new platform. Because of the move, some of the site addresses have changed and your bookmarks or favorites may not work. We suggest you make new bookmarks for your favorite pages. Also, we added a new tab, Other Refundable Credits. This new section currently has resources to help you file accurate returns with education credits and the Child Tax Credit. If you can’t find something, we are happy to help you so let us know, eitc.program@irs.gov.

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EITC and Due Diligence Made Easy DVD

Our EITC Due Diligence Made Easy DVD (IRS Publication 4926) is still available. It contains tools and resources to help you prepare tax returns. The DVD has information for 2012 but is still relevant for the following:

  • Links to the current EITC related forms and publications
  • The popular Due Diligence video clips from the tax forums
  • Basic EITC eligibility requirements
  • The Schedule C and Reconstructing Records training
  • Links to additional resources to make Due Diligence easy for you


Order your copy of the EITC Due Diligence DVD online (enter "4926" in the search box) or, call 1-800-829-3676 to place your order for up to five copies of Publication 4926. Need more copies? Send an email to us at eitc.program@irs.gov.


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Make a Complaint Against a Tax Return Preparer

Use this site to find out how to file a complaint against a tax preparer.

 

Don't Miss Any EITC News

Visit What's Hot on EITC Central for more news related to EITC and Visit our Hot Topics for  Partners for what's happening to increase EITC awareness. 

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Page Last Reviewed or Updated: 08-Jul-2014