Tuesday, November 06, 2012

Watch Those Earned Income Credit Claims



  • The IRS has notified tax preparers that they are on the lookout for fraudulent claims on the Earned Income Tax Credit.  Tax preparers with a number of questionable credit claims are notified that numerous errors have been found and that the IRS will be monitoring the claimed credits by the preparer going forward.  In addition, the letter reminds preparers of due diligence responsibilities and provides a toolkit for the credit.

    Generally, EITC will come into play with self-prepared returns (including TurboTax or TaxCut), returns of commercial preparers such as H&R Block or Jackson Hewitt, small to medium RTP businesses and small EA or CPA firms; only rarely would even a medium-small CPA firm be preparing an Earned Income Credit.  Nevertheless, with tax preparer registration now a staple; it is important not to run afoul of the IRS here.

    6 Comments:

    Blogger doktor thomas 2 said...

    Huh? It is important to always get it right.
    The IRS credentialing program offers nothing of substance except added expense for preparation cost.

    5:38 PM  
    Blogger doktor thomas 2 said...

    Huh? It is important to always get it right.
    The IRS credentialing program offers nothing of substance except added expense for preparation cost.

    5:39 PM  
    Blogger Mae Parker said...

    For anyone who has read the fine print, the government makes it very clear that there is a special penalty for fraud in this area. Never just let someone file for you without understanding what they put in the document. They may just be trying to impress you with a bigger return without consideration for the big picture.

    Broniec Associates

    8:40 AM  
    Blogger Bryann mcgrew said...

    very useful for a beginner as meā€¦thanks a lot..
    Chartered Accountants in Dubai

    7:01 AM  
    Blogger jedediah paulson said...

    This comment has been removed by the author.

    7:03 PM  
    Blogger jedediah paulson said...

    Useful post, Fraud is fraud.

    Jedediah H Paulson

    7:04 PM  

    Post a Comment

    << Home


    My blog is worth $7,903.56.
    How much is your blog worth?