EITC – How to avoid fraud in your tax office

The Earned Income Tax Credit (EITC) is by far the largest refundable credit available to individuals filing tax returns.  This fact inevitably brings the scammers out of the woodwork trying to cash in on what they see as easy money.  The fact of the matter is that you, the tax preparer, need to be sure to operate using due diligence to avoid tax office fraud.  You need to make sure that you are not consciously assisting a taxpayer commit fraud.   For assistance with handling some of the most common issues associated with processing clients claiming EITC on their tax returns see: IRS EITC Common Errors