IRS to audit Tax Preparers for C230 Due Diligence

IRS to Audit for Due Diligence Compliance

Before filing season begins, IRS employees will be conducting due diligence visits based on the prior year returns. These due diligence visits are conducted either face-to-face or by correspondence. 
If the IRS suspects you weren’t compliant with due diligence requirements for certain tax benefits, such as the earned income tax credit (EITC), child tax credit (CTC), including additional child tax credit (ACTC), credit for other dependents (ODC), American opportunity tax credit (AOTC) and/or the head of household (HOH) filing status, they may select you for an audit. 

IRS employees will be conducting due diligence visits

If selected, the IRS will contact you with either Letter 6199 (Due Diligence Visit Request) or Letter 6222 (Correspondence Due Diligence IDR) to initiate a due diligence visit. These letters ask you to respond within 14 days to either set up an appointment at your office (Letter 6199) or send information and schedule a telephone interview (Letter 6222). Please call the examiner listed by the date noted. The examiner will give you more information and talk to you about the next steps. If this is a face-to-face visit, the examiner will send a follow-up Letter 6200 (Due Diligence Visit Appointment Confirmation) to confirm your conversation and appointment date. 
During filing season, the IRS may conduct due diligence visits without advance notice, however, you would have received a letter previously indicating the potential for an examination.

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