Tax Preparer Defense Attorney Atlanta

• Complete Form 8867, Paid Preparer’s Earned Income Credit Checklist, to make sure you consider all EITC eligibility criteria for each claim you prepare.
• Complete checklist based on information provided by your client(s).
• For EITC EITC returns or claims for refund filed electronically, submit Form 8867 to the IRS electronically with the return.
• For EITC returns or claims for refund not filed electronically, attach the completed form to any paper return you prepare and send to the IRS.
• For EITC returns or claims for refund you prepare but do not submit directly to the IRS, provide the completed Form 8867 to your client to send with the filed tax return or claim for refund.

• Complete the EIC worksheet from the Form 1040 instructions, or Publication 596, Earned Income Credit, or a form with the same information.  The worksheet shows what is included in the computation, that is, self-employment income, total earned income, investment income and adjusted gross income. Most professional tax preparation software includes the computation worksheet.

• Not know or have reason to know any information used to determine your client’s eligibility for, or the amount of EITC is incorrect, inconsistent or incomplete.
• Make additional inquiries if a reasonable and well-informed tax return preparer would know the information is incomplete, inconsistent or incorrect
• Know the law and use your knowledge of the law to ensure you are asking your client the right questions to get all relevant facts.
• Document any additional questions you ask and your client’s answer at the time of the interview.

The Treasury Regulations give examples of when to apply the knowledge requirement.Find the regulations for tax return preparer due diligence requirements on the Government Printing Office site.

• Keep a copy of the Form 8867 and the EIC worksheet.
• Keep a record of all additional questions you asked your client to comply with your due diligence requirements and your client’s answers to those questions.
• Keep copies of any documents your client gives you that you relied on to determine eligibility for, or the amount of the EITC.
• Verify the identity of the person giving you the return information and keep a record of who provided the information and when you got it.
• Keep your records in either paper or electronic format but make sure you can produce them if the IRS asks for them.
• Keep these records for 3 years from the latest date of the following that apply:
  • The original due date of the tax return (this does not include any extension of time for filing.), or
  • If you electronically file the return or claim for refund and sign it as the return preparer, the date the tax return or claim for refund is filed, or
  • If the return or claim for refund is not filed electronically and you sign it as the return preparer, the date you present the tax return or claim for refund to your client for signature, or
  • If you prepare part of the return or claim for refund and another preparer completes and signs the return or claim for refund, you must keep the part of the return you were responsible to complete for 3 years from the date you submit it to the signing tax return preparer.