Letters or phone calls about due diligence and filing errors

We send letters to the tax preparer and their client when returns have errors with the due diligence requirements when claiming:

Earned income tax credit (EITC)
Child tax credit (CTC)
Additional child tax credit
Credit for other dependents
American opportunity tax credit (AOTC)
Head of household (HOH) filing status.

If you get a letter from us, don’t ignore it. Review your return preparation procedures to make sure you consistently meet all four due diligence requirements.

Tax preparers letters

Letter 5025-F, You Prepared Inaccurate Tax Returns - You Risk Penalties from an Audit —Sent when refundable credit due diligence issues are questionable.
Letter 5138, Return Preparer Client Audit Notification—We are auditing clients' returns.
Letter 6595, Pre-Filing Season Phone Call Letter—Preparer has been selected for a pre-filing season call from an IRS employee.
Letter 6597, KTV Webinar Invitation—Invitation to webinar for due diligence issues instead of a Knock and Talk visit.
Letter 4858, You May Not Have Met Your Due Diligence Requirements—Due diligence issues and claims for refunds in the current filing season.
Letter 536, Missing Form 8867—Preparers failed to include Form 8867, Paid Preparer's Due Diligence Checklist PDF, on non-electronic returns in the current filing season.

If the accuracy of the returns you prepare doesn't improve, you may be subject to phone calls, in person visits or due diligence compliance audits.

Tax preparers phone calls

We will call the tax preparer if they continue to make errors claiming tax benefits. During the call we will discuss:

Letters for taxpayers

Letter 6138, You Need to Make Sure your Tax Return is Accurate—Your filing may contain errors claiming the EITC, CTC/ACTC/ODC, AOTC or HOH filing status.

Due diligence law, regulations and requirements

Tax preparer due diligence rules

Preparer compliance - Focused and tiered

Knock and talk

Barring non-compliant EITC return preparers from filing tax returns

Due diligence requirements for knowledge and recordkeeping

Paid preparer due diligence videos

Applying tiebreaker rules to the Earned Income Tax Credit