Tax Preparers Face Penalties on EITC Returns

IRS to Penalize Preparers for Failure to Attach Form 8867

For tax year 2012, IRS is sending notice of penalty letters to nearly 800 preparers who received the warning Letter 4989 and continued to submit EITC claims without the Form 8867.

Starting with the 2013 tax year, IRS will penalize all preparers who do not submit or attach the Form 8867,* Paid Preparer’s Earned Income Credit Checklist, with both electronic and paper EITC returns or claims for refund.

IRS will penalize these preparers $500 for each failure to submit or attach the form.

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