The Software Developers Working Group (SDWG) is a partnership between the IRS Return Integrity and Compliance Services (RICS) Office and various software industry representatives. The software industry representatives are members of the National Association of Computerized Tax Processors (NACTP) and the Council of Electronic Revenue Communication Advancement (CERCA).
The IRS started this partnership in February 2008 to address EITC compliance and tax preparer EITC due diligence because of the increase in the number of tax returns filed electronically. Most tax returns claiming EITC are prepared using software. About 95 percent of preparers and individuals completed tax returns claiming the earned income tax credit (EITC) using software.
The group expanded its efforts beyond EITC to include the additional due diligence requirements. The SDWG suggests potential short-term and long-term recommendations, best practices and software enhancements that:
- foster improved quality of EITC returns and returns with other refundable credits
- help preparers meet their due diligence requirements
- adopt positive changes for paid return preparers and tax preparation software
The working group reports its accomplishments and recommendations in the Software Developer Working Group annual report.
The Software Developers Working Group would like to hear from you. Send any suggestions for improving tax preparation software or the administration of EITC and other refundable credits to: EITC.Program@irs.gov