Earned Income Tax Credit

 

Earned Income Tax Credit

By Donna Ferguson Wright

Business Leadership Development Coach

As the tax season  2018 approaches, I decided to continue a few topics on tax preparation for our taxpayers.

My goal is that you will be ready to file your return once the tax season has started. I would like you to be ready with your questions for your tax preparer and that you will have all your documentation ready to prepare your return timely and accurately

Current Issues of Fraudulent reports

Today, the issue of Earned Income Tax Credit has become a big focal point on IRS radar. One of the reasons is that this is the area most people tend to prepare fraudulent returns. The purpose of the Earned Income Tax Credit has been put in place to assist low income earners with a refundable credit.

Individuals along with their preparers have fraudulently prepare returns by using at times dependents of individuals that do not belong to the tax preparer. Sometimes returns are even prepared by means of identity theft. These acts  put hard-working taxpayers at risk of losing their credit or delaying their refund.

Not only must taxpayer meet various requirements but their tax preparer must also be diligent and very careful in the processing of this credit. If a tax return that claims a credit was fraudulently or negligently prepared not only must a taxpayer  return the credit but the preparer may be faced with a  penalty or banned from doing returns.

https://docs.google.com/document/d/1ph6lEbbz9abDJKVXirRMRlz3ssVYj1OnWeVg60_WzG4/edit?usp=sharing

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