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 IRS Steps-Up Enforcement of EITC Claims Great Volunteer Opportunity for all MACPA Members! The Earned Income Tax Credit (EITC) is the single-largest federal government cash assistance program for low income earning taxpayers in the United States. In 2006, there were more than 22 million EITC returns filed, paying out in excess of $43 billion. The IRS estimates that between 23 and 28 percent of those claims had been overstated, thus, somewhere between 10 and 12 billion dollars in improper claims were paid to unqualified taxpayers. Seventy percent of the EITC claims made every year are completed by tax professionals on behalf of their clients. The IRS, in an effort to curb misstated EITC claims in the future, has developed a due diligence system that seeks to reduce overstated claims and introduce penalties for tax preparers who fail to meet the following four requirements when claiming the credit on behalf of their clients:
A description of each due diligence requirement is
available via the
IRS.gov website. |
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| PO Box 5068 Troy, MI 48007-5068 Phone: 248.267.3700 Fax: 248.267.3737 E-mail: macpa@michcpa.org | |
