Art Werner: Due Diligence and the IRS Enforcement | Quick Tax Tip

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The IRS is increasing scrutiny, and your due diligence must meet the challenge.

Quick Tax Tip

With Art Werner

CPE Today

As the IRS increases its enforcement efforts fueled by new funding and additional agents, understanding and practicing due diligence is more critical than ever for tax professionals. Due diligence requirements, established to ensure compliance with tax law, place a significant responsibility on tax practitioners to verify their clients’ eligibility for certain tax benefits.

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Tax professionals must now certify positions related to the American Opportunity Tax Credit, the Earned Income Tax Credit, the Child Tax Credit, and the filing status of Head of Household. These certifications require meticulous documentation, a thorough understanding of the client's situation, and adherence to the law.

Failing to uphold due diligence can have serious consequences.