IRS is sending letters to EITC tax return preparers starting in September 2015 and continuing to the filing season. IRS sends letters to return preparers who completed highly questionable EITC claims. The following letters are educational only. But, IRS will continue to monitor the EITC returns prepared in the upcoming filing season to see if the quality of the preparers’ returns improves.
Return Preparers may also receive the Letter 5138, Return Preparer EITC Client Audit Notification. This letter informs preparers we may also audit their clients’ returns.
For more information and examples of the letters in English or Spanish, see our page, Reaching Out to Preparers.
Verify you entered the correct PTIN(s), Preparer Tax Identification Number,(s) into your tax software for yourself and your employees. Also, be sure to remove PTINs for non-returning employees. Using an incorrect PTIN could lead to penalties and unnecessary contact with IRS. Also find out more about how you can protect your EFIN and PTIN here.
The IRS recently got another EITC Due Diligence injunction that prohibits preparers from preparing any further federal income tax returns. These 21 EITC compliance strategy injunctions represent over $119 million dollars in harm to the government. Find more information on the process and the preparers involved here.
The IRS webinars that aired January 7, and 8, 2015 are now available for your viewing. Learn how to avoid common errors and penalties when determining eligibility for IRS Refundable Tax Credits such as the American Opportunity Tax Credit, Child Tax Credit and Earned Income Tax Credit. You’ll also hear how due diligence can benefit you, your clients and your business. IRS subject matter experts offer tips and resources to help you prepare and file accurate claims for refundable tax credits. View the Keeping Up with Earned Income and Refundable Tax Credits video here. View the El Crédito por Ingreso del Trabajo y Créditos Reembolsables video which aired 8 de enero de 2015 here.
The two seminars the EITC and Refundable Credit office presented at the 2014 Nationwide Tax Forums are now available online. You can audit the seminars for no fee or pay a fee to take the courses for Continuing Education credit. Find out more on our tax forum page.
Keep yourself and your practice safe from fraud. We have found unauthorized uses of PTINs, Preparer Tax Identification Numbers, and EFINs, Electronic Filing Identification Numbers. Find out more on our page, What Can I Do to Protect my EFIN and PTIN?