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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Thursday, June 9, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This webinar will explain steps tax preparers can take to ensure they meet the IRS' due diligence requirements for claiming taxpayer credits and benefits, including the American Opportunity Tax Credit, Earned Income Credit, Child Tax Credit, and Head of Household Filing status. Our panel of IRS examination experts will discuss how and when to respond to IRS letters, completing Form 8867, Paid Preparer's Due Diligence Checklist, required documentation and retention, and how to handle an IRS due diligence examination.

Faculty

Josie Harris-Walton
Miscellaneous

Ms. Harris-Walton is an accomplished attorney with an illustrious reputation in tax law, Ms. Harris-Walton  is affectionately known as the "TaxPros Attorney."   She is renowned for her innovative TaxPros Concierge framework, a solution that ensures tax professionals remain in compliance with the IRS and tax laws, granting them relief for any legal entanglements or imprisonment. Ms. Harris-Walton's educational background is just as impressive, holding a Master of Law in Taxation (LL.M. in Taxation) from DePaul University School of Law.  Driven by her passion and dedication to helping tax professionals and businesses resolve complex tax and corporate issues have made her a trusted advisor in the industry. With more than a decade of experience in the legal profession, Ms. Harris-Walton has garnered accolades for her expectational skills, unwavering attention to detail, and client-focused approach. She strives to guide her clients through the intricates of tax and corporate law. Ms. Harris-Walton is committed to helping her clients navigate the often complex and challenging world of tax and corporate world with ease and confidence. 

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Melinda Tolbert
President and CEO
MJ Tolbert Tax Audit Group

Ms. Tolbert, who specializes in taxation, has been a successful tax practitioner for over sixteen years and recently earned the highest credential the Internal Revenue Service awards. Enrolled Agents are federally authorized to represent taxpayers before the IRS and, like CPAs and Attorneys, have unlimited representation rights.

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Description

Struggling with heavy workloads, client meetings, new legislation, and other demands of tax season, practitioners rely too heavily on their tax software to meet due diligence requirements. Even when the appropriate inquiries are made and documents reviewed, these actions may not be adequately preserved. Though most returns contain one or more of the benefits above, tax experts often do not seriously consider meeting the required compliance obligations until a Letter Number 5025, 4858, or 5364 is received from the IRS pointing out that there may be or is a problem.

Unfortunately, not meeting due diligence requirements can subject tax preparers to penalties and sanctions. As explained in Letter 5025, "You may be penalized if you don't prepare accurate returns and comply with due diligence requirements under Internal Revenue Code Sections 6695(g) and 1.6695-2(b) of the Income Tax Regulations. The penalty is $545 per failure for tax returns filed in 2022. Failure to exercise due diligence can also result in an audit, the suspension or termination of your e-filing privileges, or a referral to the IRS Criminal Investigation Division." Anyone preparing individual income tax returns needs to know how to satisfy the IRS' due diligence requirements.

Listen as our panel of seasoned IRS audit litigators explains steps tax practitioners should take to meet the due diligence requirements, including how to prepare for an IRS examination.

Outline

  1. Due diligence audits: background
  2. Due diligence compliance areas
    1. Earned Income Tax Credit (EITC)
    2. American Opportunity Tax Credit (AOTC)
    3. Child Tax Credit (CTC)
    4. Additional Child Tax Credit (ACTC)
    5. Credit for Other Dependents (ODC)
    6. Head of Household
  3. Due diligence requirements under IRC Sections 6695(g) and 1.6695-2(b)
  4. Form 8867, Paid Preparer's Due Diligence Checklist
  5. Documenting inquiries and record retention
  6. IRS Letters
    1. Letter 5025
    2. Letter 4858
    3. Letter 5364
  7. Penalties and sanctions
  8. Due diligence audit process
  9. IRS Publication 4687, Paid Preparer Due Diligence
  10. Best practices

Benefits

The panel will review these and other critical issues:

  • What steps should a tax practitioner take when Letter 5025 or 4858 is received?
  • How does a tax professional document compliance with Section 6695(g) and the related regulations?
  • What specifically needs to be done to ensure the due diligence requirements for the earned income credit are met?
  • What should tax advisers do now to prepare for a potential due diligence examination?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify tax returns subject to due diligence requirements
  • Determine documentation that should be retained to support a taxpayer's eligibility for the earned income credit
  • Decide how to adequately prepare Form 8867, Paid Preparer's Due Diligence Checklist
  • Ascertain what penalties and sanctions can be assessed to return preparers who fail to comply with the due diligence rules

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).