IRS - Penalty Assessed for Missing Forms 8867
What Happens if IRS Receives an EITC Claim Missing the Form 8867?
If the Form 8867 is not included with EITC returns you prepared, you may get a warning letter or an alert with your acknowledgements during the filing season.
- Letter 5364 is sent to those who prepare paper EITC returns without a Form 8867
- Acknowledgement Alerts are sent electronically to those preparers who e-file EITC returns without Form 8867.
We can't associate a Form 8867 with return that is already processed. So please don't submit the form separately. Doing so has no affect on your penalty assessment.
If we continue to receive EITC claims prepared by you missing the Form 8867, we continue to send warning letters. We also may send the Letter 1125 with the Form 5816, Report of Tax Return Preparer Penalty Case, assessing the EITC Due Diligence penalty of $500 for each missing form.
The IRS page EITC Central has additional information about the 8867, and preparer due diligence requirements.