PREPARERS REQUIRED TO USE FORM 8867

   This week the IRS has announced that it would be required for paid tax return preparers to file a due diligence checklist Form 8867 with any federal returns claiming the Earned Income Tax Credit. In essence it was designed to reduce errors on returns claiming the EITC. This checklist will help preparers be accountable for what they enter in when filing the EITC for their clients.The EITC benefits low-and moderate-income workers and working families. However, the credit varies by income, size and filing status. Taxpayers can get it even if they owe no tax but they must be eligible.

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