In a continuing effort to improve preparer due diligence requirements for preparers of EITC returns, the IRS will be requesting that additional information be attached to the return for the upcoming filing season. They will also be performing their yearly letter campaign, educational "Knock and Talk" visits, and due diligence audits for EITC preparers.
Starting with the upcoming filing season, the Form 8867 (Paid Preparers Earned Income Tax Credit Checklist) will be required to be attached and filed with a return that is completed by a paid preparer, and is claiming EITC.
Beginning this month (October 2011), EITC return preparers that have been identified as “at risk” for potentially filing TY 2010 returns with errors when claiming the Earned Income Tax Credit will receive either a letter, an educational visit, or be subject to a due diligence audit.
The IRS uses a risk-based scoring model to classify preparers of 2010 EITC returns.
Click here to continue reading the entire CrossLink Tax Update that includes information on the IRS EITC Preparer Compliance and what an EITC return preparer may be subject to.
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