2008 Recommended Software Enhancements

This Software Developers Working Group identified EITC software enhancements. The improvements help tax return preparers meet their due diligence requirements and improve EITC accuracy.

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TY 2008 Recommended Software Enhancement

1

Eliminate the use of default answers where answers are critical to return accuracy.

2

Include pop-ups or additional diagnostics with suggested additional inquiries the preparer may make to assist the preparer to comply with EITC due diligence requirements and identify questionable EITC situations.

3

Use diagnostics or training/job aids in order to facilitate the gathering of information from the taxpayer on sensitive questions and additional information.

4

Incorporate a "note" capability in the software where the preparer can record any additional inquiries made and the taxpayer responses.

5

Promote thorough interviews through additional software questions, job aids, training materials and help screens.

6

Add a reminder to preparers that they cannot rely on the software alone to meet their due diligence requirements. The preparer must have a complete understanding of the tax law.

7

Incorporate links in the software to IRS EITC training and resource materials.

8

Incorporate EITC training materials in the software.

 

There is no requirement for the software companies to implement the recommendations; it is voluntary. But they were well received; two thirds of the software companies who responded to a July 2008 survey, planned to implement the first seven of the recommendations. Four survey respondents did not intend on implementing the last recommendation to incorporate training materials. The four software packages already had screens or links pointing directly to information on the IRS website.

The group found that preparer feedback is also very positive about the improvements in the return preparation software. 

Read the full 2008 Software Developers Report here.

In 2009, the group focused on additional training and guidance for tax preparers filing a Schedule C form. Read more about the Group's 2009 preliminary Schedule C Strategy and Future Focus here.

 

Last updated: 7/10/10