Washington (Jan. 21, 2004) -- The Internal Revenue Service said it consolidated its earned income tax credit management activities within a single EITC office as part of efforts to improve the accuracy of tax returns and to improve the agency’s internal processing procedures.

The agency also urged taxpayers with low incomes to review their eligibility for the EITC. The IRS said it receives the majority of EITC claims in February, after workers receive their W-2 forms.

“EITC rules can be complicated, so you should carefully review the qualifications. Know, don’t guess, if you are qualified,” Commissioner Mark W. Everson said.

EITC eligibility rules can be found in Fact Sheet 2004-8, in Publication 596, and through links at 1040 Central on IRS.gov. For tax preparers, there is a new EITC information kit at www.irs-eitc.info/preparer/ and a new EITC tool kit in Publication 3107E.

Income limits have increased for the 2003 tax year. Taxpayers must earn less than $33,692 if they have two or more qualifying children, $29,666 with one qualifying child, or $11,230 if there are no children. Income limits are $1,000 higher if a couple’s filing status is married filing jointly.

-- WebCPA staff

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