IRS Note to Tax Preparers about the earned income tax credit (EITC), the child tax credit (CTC), the refundable part of the CTC, the additional child tax credit (ACTC), and the American opportunity tax credit (AOTC)
The IRS considers you an essential partner in helping individuals and families understand the complex requirements and claim the credits only when appropriate. The number of individuals claiming the EITC, the ACTC/CTC and/or the AOTC is high and the number of refundable credit claims paid out in error is significant. IRS estimates the EITC error rate alone to be around 27 percent, roughly $18 billion paid out in error in 2014.
We are committed to providing you with the information and tools you need to prepare accurate and complete returns containing these important credits. Our goal is to make sure everyone who is eligible, figures the credits accurately and gets the correct amount they are eligible to receive.
If you have comments or suggestions on improving this toolkit, please let us know.