IRS Sending EITC Letters to Taxpayers

Posted on January 11, 2016 · Posted in Breaking News, Industry News

1/11/16 – The IRS is sending 5621 and 5621-A letters to some taxpayers who may not be entitled to some or all of the Earned Income Tax Credit (EITC) claimed on their 2014 tax returns. If your client receives a letter, he or she is asked to review their 2014 tax return for accuracy and, if needed, file an amended tax return to make corrections.

  • Letter 5621 asks the taxpayer to review the tax return to determine if children claimed each met all the qualifying child rules for the credit.
  • Letter 5621-A asks the taxpayer to review the tax return to determine if all the income and expenses reported from self-employment on Schedule C or Schedule C-EZ are complete and correct.

For more information on your due diligence requirements, visit the Tax Preparer Toolkit on EITC Central.