Hot Topics for Return Preparers
Hot Topics:
- Updated Frequently Asked Questions and Preparer Due Diligence Pages Include the New Requirements for EITC Due Diligence
- EITC Due Diligence Penalty Increased
- EITC Compliance Strategy Brings in 10th Case Leading to Injunction
- Watch our Meeting Your EITC Due Diligence Webinar
- Fourteen Seminars from the 2011 Forums, includinging the EITC Due Diligence Seminar, are Available Online
- Treasury Department Circular No. 230 (Rev 8-2011)
- Make a Complaint Against a Tax Return Preparer
- Don't Miss Any EITC News
Updated Frequently Asked Questions and Preparer Due Diligence Pages Include the New Requirements
We updated our site to include the new EITC Due Diligence requirements finalized in December 2011. We cover the new requirement to complete and submit the Form 8867, Paid Preparer's Earned Income Credit Checklist, with all returns and refund claims for EITC, other new record keeping requirements, and the expansion of the due diligence penalty to employers. See Our Updated Frequently Asked Questions Concerning the EITC Due Diligence Regulations and visit our Preparer Due Diligence pages for the latest information.
EITC Due Diligence Penalty Increased
Paid preparers failing to meet their due diligence requirements on EITC claims face higher penalties for returns required to be filed after December 31, 2011. The United States-Korea Free Trade Implementation Act signed into law October 21, 2011 amended IRC section 6695(g) by striking the $100 and inserting $500. The increased penalty is an incentive for due diligence compliance, ensuring more accurate EITC claims. View the United States-Korea Free Trade Implementation Act on the Library of Congress site.
EITC Compliance Strategy Brings in 10th Case Leading to Injunction
The IRS recently got its tenth injunction under the new streamlined process. The injunctions permanently bar preparers from preparing any further federal income tax returns for others or impose limitations on the preparer. Find more information on the streamlined injunction process and the preparers involved here.
Watch our Meeting Your EITC Due Diligence Webinar
If you missed or want to review the Meeting Your EITC Due Diligence webinar which aired on January 4, 2012, click here. The webinar covered the new requirements, how to avoid common pitfalls, and protecting yourself from higher penalties.
Fourteen Seminars from the 2011 Forums, includinging the EITC Due Diligence Seminar, are Available Online
You can audit the courses free of charge or you can earn continuing professional education credits online through seminars filmed at the 2011 IRS Nationwide Tax Forums for a fee. The seminars are now available on the IRS Nationwide Tax Forums Online (click here for the Nationwide Tax Forums seminar home page). The 14 self-study seminars provide information to tax professionals using interactive videos synchronized with slides. Each seminar includes downloadable PowerPoint slides and a transcript.
The seminars cover many topics of interest including EITC due diligene for preparers, tax law updates and changes to information on IRS procedures and processes, registered tax return preparer regulations, new information reporting requirements, IRS Fresh Start initiatives and their effect on collection and the small business health care tax credit. Click here to go directly to the EITC Due Diligence course.
Treasury Department Circular No. 230 (Rev. 8-2011)
Click here for the revised version of the Circular 230 for the Regulations Governing Practice before the Internal Revenue Service . Effective August 1, 2011, the Circular 230 now covers registered tax return preparers and other persons representing taxpayers before the Internal Revenue Service.
Make a Complaint Against a Tax Return Preparer
Use this site to find out how to file a complaint against a tax preparer.
Don't Miss Any EITC News
Visit "What's Hot" on EITC Central for more news related to EITC and visit out Hot Topics for Our Partners for what's happening to increase EITC awareness.
Last updated: 2/27/2012