The IRS will be sending warning letters to preparers suspected of filing inaccurate Earned Income Tax Credit (EITC) claims during November and December. The letters detail critical issues identified on the returns, explain the consequences of filing inaccurate EITC claims and advise preparers that IRS will continue monitoring the EITC claims they file. Preparers filing inaccurate EITC claims may be subject to a penalty, have IRS e-file privileges revoked and barred from tax return preparation.
IRS also plans to visit some tax preparers to provide education and outreach on meeting EITC due diligence requirements. More information about the IRS’s compliance initiatives and EITC due diligence can be found at EITC Central.