IRS Sends Warning Letters to Tax Practitioners on Inaccurate EITC Claims

Washington, D.C. (November 12, 2013)


By Michael Cohn

The Internal Revenue Service said it is sending letters in November and December to tax preparers suspected of filing inaccurate claims for the Earned Income Tax Credit.

In an email to tax professionals on Tuesday, the IRS said the letters detail the critical issues identified on the tax returns, explain the consequences of filing inaccurate claims for EITC and advise preparers that IRS will continue monitoring the types of EITC claims they file.

“Filing inaccurate EITC claims may result in penalty assessment, revocation of IRS e-file privileges and other consequences including barring preparers from tax return preparation,” said the IRS.

The IRS said also plans to conduct visits to some tax preparers in efforts of providing education and outreach on meeting EITC Due Diligence requirements.

To avoid penalties, the IRS is advising tax preparers to visit EITC Central to learn more about IRS compliance initiatives and EITC Due Diligence.