The IRS is now sending letters to preparers who are suspected of filing inaccurate EITC claims.
The letters pinpoint the primary issues identified on the returns, explain the consequences of filing inaccurate claims for the EITC, and advise preparers that the IRS will continue monitoring the types of EITC claims they file.
"Based on a recent internal review, a large number of 2011 tax returns you prepared with Earned Income Tax Credit (EITC) contained errors," a sample warning letter begins. One group of letters begins "You may have violated tax law by submitting inaccurate returns."
The letters pinpoint the primary issues identified on the returns and warn of future monitoring. The sample letter also details preparers' duties regarding proper filing for EITCs, including due diligence.
The sample letter also points out an online IRS toolkit for EITCs. A primer for individuals is also available.
2 Comments
I wonder what are we supposed to do now? ask a client that shows up with a $14,000 of self employment and a $2000 expenses, to come up with more expenses for the sake of reducing their potential EITC refund? This will be tough for practioners.
Posted by: sekbam1 | November 7, 2012 12:23 PM
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As I have been suggesting for sometime, the IRS now has the taxpreparer by the thought since they have not had good luck on catching EITC cheaters. The rules are clear. Have your client document their legitimentcy under the IRS rules and have us keep this audit trail. Those self-employed EITC filers are really being thrown under the bus. I suggest that you carefully read the obligations you have under Sec 230 for those returns!!
If you need outside help, look at geteic.com djb cpa
Posted by: DJBradach | November 7, 2012 7:41 AM
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