EITC Update on Delays & Precautions

IRS is reporting that 30% of your EITC clients could face a 75-day review process. This could be a result of the 38% increase in EITC fraud reported in 2010 by TIGTA.

Taxpayers affected by this new screening process will receive the IRS Letter 4883C by mail, and they will be asked to respond by telephone. Using Letter 4883C, Potential Identity Theft in Original Processing, IRS will be asking for proof of identity, and therefore the response must be completed by the taxpayer NOT the tax preparer.

If IRS receives no response, the return will NOT be processed. Most fraud occurs early in the tax season as thieves are looking for lenient preparers so beware of early EITC filers who are new to you this year.

Joseph Rogers

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