The IRS is issuing new rules are coming for preparers of returns with the earned income credit. Preparers are going to have to file a due diligence checklist along with the returns,according to a key IRS official.
The checklist will detail the procedures the preparer took to verify that the filers are eligible for the credit. Currently, this info is contained only on Form 8867, but preparers haven’t been required to file the form with the return.
IRS believes that the new way reduces the number of fraudulent earned income credit claims.