The Internal Revenue Service announced that it is issuing proposed
\nregulations that would require paid tax return preparers, beginning in 2012, to
\nfile a due diligence checklist, Form 8867, with any federal return claiming the
\nEarned Income Tax Credit (EITC). It is the same form that is currently required
\nto be completed and retained in a preparer’s records.<\/p>\n
The due diligence<\/a> requirement, enacted by Congress over a decade ago, was designed The IRS created Form 8867<\/a>, Paid Preparer’s Earned Income Credit Checklist, to help preparers meet the Further details can be found in REG-140280-09. Comments on the proposed The EITC benefits low-and moderate-income workers and working families and Although as many as one in five eligible taxpayers fail to claim the EITC, The Internal Revenue Service announced that it is issuing proposed regulations that would require paid tax return preparers, beginning in 2012, to file a due diligence checklist, Form 8867, with any federal return claiming the Earned Income Tax Credit (EITC). … Continue reading
\nto reduce errors on returns claiming the EITC, most of which are prepared by
\ntax professionals.<\/p>\n
\nrequirement by obtaining eligibility information from their clients. Preparers
\nhave been required to keep copies of the form, or comparable documentation,
\nwhich is subject to review by the IRS. To help ensure compliance with the law
\nand that eligible taxpayers receive the right credit amount, the proposed
\nregulations would require preparers, effective Jan. 1, 2012, to file the Form
\n8867 with each return claiming the EITC.<\/p>\n
\nregulations are due by Nov. 10, 2011, and a public hearing on the proposed
\nregulations is scheduled for Nov. 7, 2011.<\/p>\n
\nthe tax benefit varies by income, family size and filing status. Unlike most
\ndeductions and credits, the EITC is refundable \u2013\u2013 taxpayers can get it even if
\nthey owe no tax. For 2011 tax returns, the maximum credit will be $5,751.<\/p>\n
\nsome of those who do claim it either compute it incorrectly or are ineligible.
\nThe IRS is proposing this step as part of its efforts to ensure that the credit
\nis afforded to taxpayers who qualify. For 2009, over 26 million people received
\nnearly $59 billion through the EITC. Tax professionals prepare close to 66
\npercent of these claims.<\/p>\n","protected":false},"excerpt":{"rendered":"