Welcome Guest. Register Now!  


CPA Forums CPA related topics.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-03-2012, 11:35 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,398
Blog Entries: 3
IRS tightens compliance rules for Claiming Earned Income Tax Credit on 2011 Tax Returns.

The IRS has reminded "preparers of tax returns claiming the earned income tax credit in 2011 Tax Returns, the due diligence checklist has to be submitted with the filed return."

Prior to this, tax preparers had to complete Form 8867 or a similar due diligence checklist and retain it in their files to show they verified that the taxpayer was eligible for the credit.

Under the new IRS Tax Regulations, "the 8867 or the checklist must be filed with the return. If your clients make the decision to send in their return themselves, the 8867 or checklist must be attached."

Clearly, this is intended to reduce Fraudulent Returns and hold tax preparers responsible for fraudulent Earned Income Tax Credits claimed on tax returns.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What is the Foreign Earned Income Exclusions and Housing Cost Allowance for 2011? TaxGuru Income 0 12-13-2011 02:44 PM
Question: Earned Income Credit AHolmes Income 0 03-19-2010 11:26 AM
Be Sure to Know Whether You Qualify for the Earned Income Tax Credit Samatg For 2009 0 02-02-2010 10:04 PM
Earned Income Credit . taxstudent Income 0 03-02-2008 10:53 PM
Is the child support considered income when calculating the earned income credit? aron Income 1 09-16-2007 10:50 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning