Due Diligence for HOH

[Max W]

 

This comes from a cpe update course.  (Sequioa #3220A)

Paid preparer due diligence requirement for head of household status
The Act directs the Secretary of the Treasury to promulgate due diligence requirements for paid preparers
in determining eligibility for a taxpayer to fle as head of household. A penalty of $500 is imposed for
each failure to meet these requirement
 

[Edsel]

Do you detect nearly the aggressive posture by the IRS against the taxpayers who violate HOH, EIC, false dependency as you detect this "due diligence" aggressive posture which claims they are not making auditors out of tax preparers?

If the IRS would actually get off their butt and audit only 2-3 taxpayers in our county, that would be enough to scare the other perpetrators from selling their children's social security numbers on the black market.

 

[Abby Normal]

2 hours ago, Edsel said:

If the IRS would actually get off their butt

Congress has cut their budget so much, they no longer have the resources to perform basic functions. They even sort CP2000s by dollar amount and only send out the number they can handle. I haven't seen a CP2000 for less than 1,000 in the past two years.