IRS Regulations Impose Strict Penalties on Tax Preparers for Inaccurate EITC Claims

The IRS is making major changes to the Paid Preparer’s Earned Income Credit Checklistand is continuing to crack down on inaccurate Earned Income Tax Credit(EITC) claims.

           

Make sure you know the Earned Income Tax Credit Due Diligence Requirements, because the consequences of incorrectly filing the EITC can have devastating effects on you, your employees, and your tax business. If the IRS examines your EITC claims and finds that you did not meet all four due diligence requirements, you can get:

·         A $500 penalty for each failure to comply with EITC due diligence requirements for returns required to be filed after December 31, 2011.

·         A minimum penalty of $1,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to an, unreasonable position.

·          A minimum penalty of $5,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to your reckless or intentional disregard of rules or regulations.

·          IRS can also penalize an employer or employing firm if an employee fails to comply with the EITC due diligence requirements. (There are only specific circumstances when an employer is subject to the due diligence penalty.) 

                                                                                                              

If you receive a return-related penalty, you can also face:

·          Loss of your Registered Tax Return Preparer designation

·         Suspension or expulsion of you or your firm from IRS e-file

·         Other disciplinary action by the IRS Office of Professional Responsibility

·          Injunctions barring you from preparing tax returns or imposing conditions on the tax returns you may prepare

 

Don’t let this happen to you or your business!
TaxSlayer Pro will discuss this and many other important topics at our Annual Seminar held in Las Vegas, NV and Augusta, GA. The fact is YOU AND YOUR STAFF cannot afford not to attend. Sign up today!

Registration Fee:
Early registration fee of only $225 per guest – includes lunch & reception.
Vegas – $275 per guest after October 15, 2012
Augusta – $275 per guest after October 31, 2012

 

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