News and Updates for Paid Preparers

Find news to share with your clients and other taxpayers, and tips and resources for following the rules for refundable credits.

In this section:

Get Continuing Education Credit – Nationwide Tax Forums Online

Watch the IRS Nationwide Tax Forum Online and take online, self-study seminars for continuing professional education credits or audit.

For a list of available online seminars, see IRS Nationwide Tax Forums Online.

For more educational resources, see Educational Opportunities.

IRS Compliance Strategy Brings Injunctions

The Tax Division of the U.S. Department of Justice can ask federal courts to permanently ban certain preparers from preparing federal tax returns for others if preparers fail to meet due diligence requirements. For details, see recent injunctions barring non-compliant tax preparers from filing tax returns.

IRS Due Diligence Regulation

Review the Final Treas. Reg. § 1.6695-2 Tax Return Preparer Due Diligence for Certain Tax Returns and Claims published November 7, 2018.

IRS Due Diligence Requirements

Tax preparers must practice due diligence when they complete returns claiming tax credits, including:

  • Earned Income Tax Credit
  • Refundable portion of the Child Tax Credit
  • Additional Child Tax Credit
  • Credit for Other Dependents
  • American Opportunity Tax Credit
  • Head of household filing status

For more details, see Preparer Due Diligence Law.

IRS Due Diligence Telephone Calls

We may contact potentially noncompliant paid preparers by telephone to review due diligence rules and discuss possible consequences if they continue to send us questionable returns. The calls are exempt from IRS directives on not calling taxpayers. We won’t discuss specific information or ask the preparer to disclose client information. For more information, review Reaching Out to Paid Preparers.

IRS Due Diligence Training Module – 2021 Update

Take Refundable Credit Best Practices Due Diligence Training Module to earn one continued education credit. If you already took the course this year, review the updates, but you won’t receive another credit.

English - Due Diligence Module for 2021

Spanish - Due Diligence Module for 2021

IRS Educational Letters to Paid Tax Return Preparers

We send educational letters to certain paid preparers to inform them of potentially questionable returns they filed, and to help them stay compliant with due diligence rules. We’ll continue to monitor returns submitted by the preparers to see if their accuracy improves.

IRS Outreach Connection on IRS.gov

Get information monthly about tax law, IRS events and information your clients need to know.  Subscribe to the IRS Outreach Connection

Paid Preparer Due Diligence Penalties Can Be Costly

Paid preparers must keep records, do interviews and ask questions to determine whether a taxpayer meets all the eligibility requirements to claim refundable credits

We adjust the $500 penalty for inflation for each failure to meet your due diligence requirements for the:

  • Earned Income Tax Credit (EITC)
  • Child Tax Credit (CTC)
  • Additional Child Tax Credit (ACTC)
  • Credit for Other Dependents (ODC)
  • American Opportunity Tax Credit (AOTC)
  • Head of Household filing status

The penalty is $540 per failure for returns or claims filed in 2021.

The penalty applies to each credit and claim for Head of Household filing status incorrectly claimed on a tax return. For example, if the preparer files a return or claim in 2021 for all three credits (EITC, CTC, ACTC, ODC and AOTC) and Head of Household filing status, the fine can be $2,160.

Protect Your EFIN and PTIN

Keep yourself and your tax preparation business safe from fraud. For more information, see Protect Your Clients; Protect Yourself.

Share Tax Credit Information With Your Clients

See our social media resources for tax credit tweets, banner ads, Facebook ads, podcasts and more.