TAP E05-003

Dear EITC Preparer Letter

Statement of Issue:

The EITC Committee was asked to comment on a letter to tax professionals who prepare tax returns claiming the Earned Income Tax Credit (EITC) and have a history of errors on their returns.

Proposal:

The Committee recommended tailoring the letter to an individual and perhaps a version tailored to corporate preparers. The Committee suggested changes to strengthens the letter, including stating that Form 8867 or its equivalent should be used and that records should be kept for at least three years.

The Committee suggests the numbered list of “common errors” be changed to a check box type list so the boxes could then be check marked to indicate which of the “common errors” are being committed by the addressee along with a fifth check box marked “Other”. The “Other” would be reserved for errors not listed as “common errors” but errors that are specific to the addressee.

Response Notes: