Chowdahead Posted January 9, 2009 Report Share Posted January 9, 2009 Has anyone else noticed that the EIC checklist now requires that you answer 4-5 questions regarding the eligibility of the taxpayer before it will calculate the EIC? Is this a bug or am I really going to have to do this now for every single client who qualifies for the EIC? :unsure: Quote Link to comment Share on other sites More sharing options...
taxtrio Posted January 9, 2009 Report Share Posted January 9, 2009 Due Dilligence!! Many preparers print the form and have the client sign it and keep it in their files to show their "due dilligence" Taxtrio Quote Link to comment Share on other sites More sharing options...
jainen Posted January 9, 2009 Report Share Posted January 9, 2009 >>Is this a bug or am I really going to have to do this now << Reg. 1.6695-2 has already required such documentation for many years. Look it up in any standard tax reference. As taxtrio says many preparers ask the client to sign it, but that seems to be a misunderstanding. The responsibility for completing and retaining this form (and substantial monetary penalty for non-compliance) is imposed only on the preparer. Quote Link to comment Share on other sites More sharing options...
Chowdahead Posted January 9, 2009 Author Report Share Posted January 9, 2009 >>Is this a bug or am I really going to have to do this now << Reg. 1.6695-2 has already required such documentation for many years. Look it up in any standard tax reference. As taxtrio says many preparers ask the client to sign it, but that seems to be a misunderstanding. The responsibility for completing and retaining this form (and substantial monetary penalty for non-compliance) is imposed only on the preparer. ATX TY2007 automatically filled this form in based on the boxes checked on the dependents input sheet. This year, it appears that the questions also have to checked manually on the EIC checklist as well. My point is, if I am checking these off on the dependent input page designed by ATX, why isn't the software propagating those choices on the checklist? Maybe it was a one time glitch or has been fixed in an update, I'll have to go back in check. But usually, while filling out the dependent input page, I ask the client line-by-line the various questions (name, relationship, lived with more than 6 months, student, etc) This used to propagate on the checklist as a result. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted January 9, 2009 Report Share Posted January 9, 2009 I don't do too much EIC, but I think it filled in some of the questions, but not all, and did not calculate EIC until you did. Look on The Tax Book message board for discussion regarding due diligence EIC audits. Quote Link to comment Share on other sites More sharing options...
taxtrio Posted January 10, 2009 Report Share Posted January 10, 2009 >>Is this a bug or am I really going to have to do this now << Reg. 1.6695-2 has already required such documentation for many years. Look it up in any standard tax reference. As taxtrio says many preparers ask the client to sign it, but that seems to be a misunderstanding. The responsibility for completing and retaining this form (and substantial monetary penalty for non-compliance) is imposed only on the preparer. I guess some preparers want the added security of having the client sign-- therefore attesting that the information is correct. Taxtrio P.S. I've never had them sign it. Just never thought of it. Quote Link to comment Share on other sites More sharing options...
Cajun Sue Posted January 12, 2009 Report Share Posted January 12, 2009 Hello everyone...Hoping this time I can access the website and maybe contribute some useful information. Been a rough year for some of us Cajuns..but all have survived and doing fine. Hope all went well with you. I watched a video online on EIC Due Diligence last week. The agent strongly suggested asking all types of questions and keeping on file all information concerning EIC. Guess this is ATX's way of helping us do so. www.irstaxforumsonline.com/holland.php Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 12, 2009 Report Share Posted January 12, 2009 Hello everyone...Hoping this time I can access the website and maybe contribute some useful information. Been a rough year for some of us Cajuns..but all have survived and doing fine. Hope all went well with you. I watched a video online on EIC Due Diligence last week. The agent strongly suggested asking all types of questions and keeping on file all information concerning EIC. Guess this is ATX's way of helping us do so. www.irstaxforumsonline.com/holland.php Hey Sue.........welcome back. We missed you and needed you. Your take on the EIC question sounds correct to me. Quote Link to comment Share on other sites More sharing options...
Cajun Sue Posted January 12, 2009 Report Share Posted January 12, 2009 Hello mcb...Agent 39 wasn't it? LOL...I haven't had an opportunity to read ALL the posts yet, so I am behind in the news of everyone. Hope all are well and have had a wonderful summer. This website is known for its knowledge and the wonderful heartfelt concern for its members. Look forward to "seeing" all of you this tax season. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 12, 2009 Report Share Posted January 12, 2009 CS: We are glad you're back! taxbilly Quote Link to comment Share on other sites More sharing options...
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