I’m back!
* More work for tax preparers during the season - just what we need! The NATP weekly email newsletter reported-
* More work for tax preparers during the season - just what we need! The NATP weekly email newsletter reported-
“EITC Due Diligence Checklist Coming
According to Steven Miller, IRS Deputy Commissioner for Services and Enforcement, tax professionals will soon have to include a due diligence checklist when filing tax returns that claim the earned income tax credit. The additional required documentation is an effort to deter fraudulent claims. No additional information regarding this required documentation is available at this time, but we expect to find out more information as the 2012 filing season approaches.”
We have enough to do to just get all the information we need from the client to prepare the return properly. Tax preparers should not be saddled with the additional task of verifying that a taxpayer qualifies for a government welfare program.
The Earned Income Credit, and all the other credits like it, should be taken out of the Tax Code and administered properly through the appropriate cabinet departments.
* AccountingWeb gives us the reason for the IRS planned action in “IRS Watchdog Tells of Billions of Dollars In Losses” (the emphasis is mine).
“Improper payments by the IRS are costing taxpayers billions each year.
So said J. Russell George, the Treasury Inspector General for Tax Administration in congressional testimony Wednesday. At issue are several kinds of refundable tax credits, but most of the fraud stems from the Earned Income Tax Credit, or EITC.
Improper EITC payments amounted to $11 billion to $13 billion in fiscal year 2009, George said. The IRS estimates that between 23 percent and 28 percent of payments under EITC are erroneously issued each year, he said.
‘Although the IRS has annually reported billions in EITC improper payments since it began reporting estimates to Congress in 2002, little improvement has been made in reducing these payments,’ he testified.
‘Based on our review of the various refundable credits, we believe the IRS should require individuals to provide documentation to support eligibility for all refundable tax credits,’ he told the U.S. House of Representatives' Subcommittee on Oversight, a panel of the Ways and Means Committee. ‘If such documentation is required, the IRS will also need math error authority to deny refundable credits when supporting documentation is not provided.’”
* Have you been following Trish McIntire’s series of posts on Starting a Business at OUR TAXING TIMES?
* The Friday Tax Quote at Rob Teuber’s TAX LAW FORUM blog was from Alan Greenspan -
“All taxes are a drag on economic growth. It’s only a question of degree.”
* Over at her new home at Forbes.com TAX GIRL Kelly Phillips Erb summarized the tax relief available to storm victims in “IRS Announces Tax Relief for Joplin, Other Areas Affected By Storms”.
* And Kelly celebrated the holiday with “Tax Tips for the Military on Memorial Day”
* Kay Bell discuses “529 College Savings Plans” and provides some good tips over at DON’T MESS WITH TAXES.
TTFN
According to Steven Miller, IRS Deputy Commissioner for Services and Enforcement, tax professionals will soon have to include a due diligence checklist when filing tax returns that claim the earned income tax credit. The additional required documentation is an effort to deter fraudulent claims. No additional information regarding this required documentation is available at this time, but we expect to find out more information as the 2012 filing season approaches.”
We have enough to do to just get all the information we need from the client to prepare the return properly. Tax preparers should not be saddled with the additional task of verifying that a taxpayer qualifies for a government welfare program.
The Earned Income Credit, and all the other credits like it, should be taken out of the Tax Code and administered properly through the appropriate cabinet departments.
* AccountingWeb gives us the reason for the IRS planned action in “IRS Watchdog Tells of Billions of Dollars In Losses” (the emphasis is mine).
“Improper payments by the IRS are costing taxpayers billions each year.
So said J. Russell George, the Treasury Inspector General for Tax Administration in congressional testimony Wednesday. At issue are several kinds of refundable tax credits, but most of the fraud stems from the Earned Income Tax Credit, or EITC.
Improper EITC payments amounted to $11 billion to $13 billion in fiscal year 2009, George said. The IRS estimates that between 23 percent and 28 percent of payments under EITC are erroneously issued each year, he said.
‘Although the IRS has annually reported billions in EITC improper payments since it began reporting estimates to Congress in 2002, little improvement has been made in reducing these payments,’ he testified.
‘Based on our review of the various refundable credits, we believe the IRS should require individuals to provide documentation to support eligibility for all refundable tax credits,’ he told the U.S. House of Representatives' Subcommittee on Oversight, a panel of the Ways and Means Committee. ‘If such documentation is required, the IRS will also need math error authority to deny refundable credits when supporting documentation is not provided.’”
* Have you been following Trish McIntire’s series of posts on Starting a Business at OUR TAXING TIMES?
* The Friday Tax Quote at Rob Teuber’s TAX LAW FORUM blog was from Alan Greenspan -
“All taxes are a drag on economic growth. It’s only a question of degree.”
* Over at her new home at Forbes.com TAX GIRL Kelly Phillips Erb summarized the tax relief available to storm victims in “IRS Announces Tax Relief for Joplin, Other Areas Affected By Storms”.
* And Kelly celebrated the holiday with “Tax Tips for the Military on Memorial Day”
* Kay Bell discuses “529 College Savings Plans” and provides some good tips over at DON’T MESS WITH TAXES.
TTFN
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