EITC Information for Tax Professionals

Bookmark this page as your resource for Earned Income Tax Credit (EITC) tools, information and guidance. Using this page, you can easily find the technical information you need to determine if your clients qualify for EITC and to practice due diligence. There are tips for avoiding common EITC errors and tools for putting due diligence into practice. We also provide an overview of the EITC Preparer Compliance program.

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Please note: To visit articles on our EITC Toolkit for Return Preparers site you leave this irs.gov site and and receive a warning for technical reasons. The toolkit is sponsored by IRS.

What's Hot?

Review our Hot Topics for Return Preparers for the latest EITC news. We give you the latest, such as,

• Paid preparers failing to meet their EITC Due Diligence requirements on EITC claims face higher penalties.

The United States-Korea Free Trade Implementation Act amended IRC section 6695(g) by striking the $100 and inserting $500. The increased penalty is an incentive for due diligence compliance, ensuring more accurate EITC claims.

• New EITC Due Diligence requirements finalized in December 2011

Find more about these and other Hot Topics for Return Preparers on our Return Preparer Toolkit.

EITC Toolkit for Tax Return Preparers

Visit our toolkit for tips on avoiding EITC errors, handling common due diligence situations and finding marketing resources in this free online tool just for you. Click here for the Return Preparer Toolkit.

EITC Due Diligence Requirements

Paid preparers must meet four due diligence requirements on returns when considering EITC. The Preparer's toolkit on our EITC Central has information on the law and related regulations and provides you information on how to meet the due diligence requirements. Read more about your responsibilities and learn how to protect yourself from potential penalties in the Preparer Due Diligence section of our Preparer Toolkit.

EITC Preparer Compliance Program

IRS has a targeted, tailored and tiered compliance approach. Our goal is to increase the accuracy of EITC claims. Learn about IRS’s approach to reduce the number of EITC claims filed by paid preparers in error on our Return Preparer Toolkit.

Will Your Clients Qualify for EITC this Year?

EITC Assistant

Walk your clients through the EITC qualification requirements with this visual online tool and show them if they qualify or not. EITC Assistant allows you to print the results. Choose the EITC Assistant in English or the EITC Assistant in Spanish.

EITC Income Limits, Maximum Credit Amounts, and Tax Law Updates

Access past, current and future EITC income limitations, plus highlights of EITC tax law changes.

Special Rules for Military, Clergy, or Disabled Individuals

Check out these special rules if your clients are military, clergy, disabled or have a child or children with a disability.

Many persons with disabilities or persons having children with disabilities qualify for the Earned Income Tax Credit or EITC. Find out more about Disability and EITC.

EITC Resources

EITC Forms and Publications

Training Opportunities

• Take the EITC due diligence training online. It's free and may qualify for CPE. It is available in both English and Spanish. Find the Due Diligence training module on the Return Preparer Toolkit.
• Preparers need to ask more questions of their clients if the claims they make about self-employment seem inconsistent, incorrect or incomplete when the tax return includes EITC. Find out how to meet your due diligence requirements and help your self employed clients reconstruct their business records; take our EITC Schedule C and Record Reconstruction Training on the Return Preparer Toolkit.
• The popular EITC Due Diligence videos featuring The Preparer from the 2011 and 2010 IRS Nationwide Tax Forums are on the Return Preparer Toolkit. Click here to view the videos.

Avoid Common EITC Errors and Learn How to Handle Common Due Diligence Situations

Avoid having your clients' returns reject by reviewing our tips on preventing the most common processing errors.
As you prepare EITC returns, avoid the three most common EITC errors which count for more than 60 percent of claims made in error. Read more about avoiding common errors here.
Find more tips on Handling the Most Common Due Diligence Situations here.

Frequently Asked Questions about EITC

Find the answers to the questions tax return preparers ask about EITC.

Software Developer's Partnership

More than 86 percent of professional preparers use tax return preparation software. IRS partnered with the software companies to form the IRS/Software Developers Working Group. This group works to improve software and help preparers meet their due diligence requirements. Read more about the software developer’s partnership on the EITC Return Preparer Toolkit.

Click on any of the Additional Resources listed below for more information:

• Learn how you can help report suspected tax fraud.
• Learn how the IRS's Criminal Investigation Division is cracking down on abusive return preparers.
• Basic Tools for Tax Professionals,Use this quick link for information on other tax topics.
• Read more on the latest tax schemes and scams reported by the Department of Justice.
• Find out more about the Standards of Practice for tax return preparers.

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