December 15, 2019

IRS issues Due Diligence Compliance Letters to Certain Tax Preparers

peter alizio calendar icon at 2:27 PM
This week in E-News for tax professionals (issue 2019-46) the IRS will be issuing compliance letters to tax preparers who have submitted returns with questionable claims for:
  • Earned Income Tax Credit
  • Child Tax Credit 
  • Additional Child Tax Credit
  • American Opportunity Tax Credit
  • Head of Household Status

Letter 5025  seems to be informational in nature acting almost like a warning or notice. Additionally, tax preparers in receipt of Letter 5025 do not need to respond:  
"This letter is for your information only. You don't need to respond. We'll continue to check future returns you prepare that claim these benefits to ensure you're meeting your due diligence requirements" 
IRS E-News states that the intent of the letter is to raise awareness around questionable tax returns and assist preparers in meeting their due diligence requirements.