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Tax Professional Awareness Week

 

What is Tax Professional Awareness Week?

A dedicated series of educational initiatives designed to equip tax professionals with the tools and information needed to prepare accurate returns ahead of filing season. The event delivers timely messaging, promotes online due diligence training, and offers valuable insights into available tax benefits. Its goal is to empower tax professionals with current knowledge and skills to navigate the continuing evolving field of taxation.

Why are tax professionals so important?

Paid tax professionals play an important role in assisting taxpayers with their filing obligations. More than half of taxpayers who claim refundable credits like the Earned Income Tax Credit or Child Tax Credit rely on paid tax professionals to accurately file their return. Without a doubt, tax professionals play an important role in ensuring the integrity of the tax system.

Support your success

Due Diligence

Know the law. Ask the right questions. Document both your questions and your clients’ responses. Keep the required worksheets and records. Review due diligence requirements for the earned income tax credit, child tax credit, additional child tax credit, credit for other dependents, American opportunity tax credit, and head of household filing status before the filing season starts.

Due diligence training

Take the paid preparer due diligence training online. You will learn about the requirements for paid tax return preparers and how to avoid penalties when you complete returns claiming the earned income tax credit, child tax credit, additional child tax credit, credit for other dependents, American opportunity tax credit, or head of household filing status.

In addition to the due diligence "must-do's" the training contains scenarios and quizzes to check your understanding. Enrolled agents and other tax return preparers can earn two continuing education credits for completing the Due Diligence Training Module along with a certificate of completion.

Become an authorized e-file provider

Join our partnership in three easy steps to save money, increase your productivity and build your business, while providing a service most taxpayers now expect.

Identity theft information for tax professionals

Be aware! Cybercriminals target tax professionals because you are custodians of highly sensitive client data. Cybercriminals attempt to steal your client's personal financial information so that they can create fraudulent tax returns and claim your client’s refunds.

Annual Filing Season Program

The program recognizes the efforts of non-credentialed return preparers who aspire to a higher level of professionalism.

Form 8867, Paid Preparer’s Due Diligence Checklist

Use Form 8867 to document your questions, your clients' responses and keep the form with your records.

Tip - Due diligence rules do not require you to request specific documentation if your clients’ responses appear to be correct, consistent, and complete. However, you must document your probing questions and your client's responses.

Form 8867 – A Core Compliance Requirement

As a paid tax return preparer, you must file IRS Form 8867 (Paid Preparer's Due Diligence Checklist) with any federal tax return or refund claim that includes the Earned Income Tax Credit (EITC), Child Tax Credit (CTC/ACTC/ODC), American Opportunity Tax Credit (AOTC), or Head of Household (HOH) filing status. In Fiscal Year 2024, the IRS assessed over $2.8 million in penalties against tax professionals who failed to include Form 8867. Returns submitted without Form 8867 may trigger Letter 1125, Transmittal of Examination Report and Form 5816, Report of Tax Return Preparer Penalty Case, assessing due diligence penalties. Stay compliant and review About Form 8867, Paid Preparer’s Due Diligence Checklist

Schedule C – Abuse of Business Expenses

Schedule C abuse remains a major IRS examination priority; especially when overstated or personal expenses are claimed as business deductions. Only ordinary and necessary business expenses may be deducted. Personal, living and family expenses are not allowable. Common abuse patterns include claiming 100% of assets used for personal and business, personal travel, overstated supplies and inflated mileage. These examples are not all inclusive. Red flags include minimal reported income with high expenses, vague business descriptions and lack of documentation. IRS estimates that 33% of the EITC claims, or approximately $21 billion were paid in error in Fiscal Year 2025, with income reporting errors accounting for approximately 28% of improper payments. Schedule C errors on EITC returns commonly involve misreporting business income and expenses. Paid preparers may face due diligence penalties if they fail to reasonably verify business activity, expense legitimacy, or documentation supporting deductions claimed. Protect yourself and your clients by documenting inquiries, maintaining contemporaneous records and ensuring all claimed expenses meet the ordinary and necessary standard. Review Schedule C guidance PDF and EITC due diligence and self-employed taxpayers to reinforce compliance. 

Schedule C- Hobby vs. Business

Does your client’s activity show regular business operations with a clear intent to earn income, or does it lack profit motive? A true business shows consistent activity and a clear intent to earn income. Repeated losses, minimal revenue and vague business purpose may indicate a hobby which lacks profit motive. Only activities that qualify as a business may file Schedule C and deduct ordinary and necessary expenses. Paid preparers must reasonably verify business activity and profit motive to meet due diligence requirements. Protect yourself from penalties by documenting inquiries, confirming business intent and ensuring all claimed expenses meet the ordinary and necessary standard. Understanding the difference between a hobby and a business supports accurate Schedule C reporting and prevents misclassification which can lead to penalties. 

How to know it's the IRS

If you get a call, text or letter that claims to be from the IRS — or if you see information online about how to get a big refund — it might be a scam, or just bad tax advice.

Affordable Care Act (ACA) services

Do you have a client who has received the Advanced Premium Tax Credit? The Affordable Care Act (ACA) contains comprehensive health insurance reforms and includes tax provisions that affect individuals, families, businesses, insurers, tax-exempt organizations, and government entities. The law also contains benefits and responsibilities for other organizations and employers.

PTIN requirements for tax return preparers

Get ready! Ensure your filing season readiness by renewing or obtaining your 2025 preparer tax identification number (PTIN) now. An active PTIN is required for all tax return preparers who are compensated for preparing or assisting in the preparation of any U.S. federal tax return.

IRS Independent Office of Appeals 

The IRS Independent Office of Appeals is here to resolve disputes, without litigation, in a way that is fair and impartial to the government and to you.

Working Families Tax Cuts

The Working Families Tax Cuts Act introduces substantial changes to federal taxes, credits and deductions, with several key provisions to take effect for the 2026 filing season.

Trump Accounts

Parents, guardians and other authorized individuals can establish a new type of individual retirement account for their children called a Trump Account. The account is for a child who has not turned age 18 before the end of the calendar year in which the election is made and has a valid Social Security number. It includes a pilot program contribution of $1,000 for children born between Jan. 1, 2025, and Dec. 31, 2028,  who are U.S. citizens with a valid Social Security number.

Saver’s Match

Starting in 2027, the federal government will match up to 50% of money individuals save for retirement. The Saver’s Match program is designed for people with low and moderate income and many clients may qualify. Learn how the program works, identify eligible clients, and provide valuable guidance during the tax preparation process.

Modernizing payments to and from America’s bank account

Paper checks for federal payments, including IRS tax refunds, were discontinued beginning September 30, 2025. If your clients still receive paper checks, now is the time to explore their options for electronic payment. Learn how they can make the switch and avoid delays.

The IRS seeks community partners and volunteers to support free tax services

Did you know anyone can volunteer to help during tax season? Whether you're a student, a tax professional, or a retiree, both the IRS and your community need your support. Volunteers play a vital role in helping underserved communities meet their tax obligation and save money. Plus, tax professionals can earn Continuing Professional Education (CPE) credits while making a meaningful impact. It’s a rewarding way to give back and make a difference nationwide.

Tax Debt Help Tool

Help your client understand and resolve tax debt. The Tax Debt Help tool provides individuals and businesses with a simple, accessible way to explore payment options and identify next steps based on their situation. The tool is part of the IRS’s broader effort to expand digital services and make it easier for taxpayers to meet their obligations.

Choosing a Tax Professional

There are various types of tax professionals who don’t have professional credentials. The taxpayer expects the preparer to be skilled in tax preparation and to accurately file their income tax return. Most tax return preparers provide outstanding and professional tax service. However, each year, some taxpayers are hurt financially because they choose the wrong tax return preparer. Be sure to check our tips for choosing a tax preparer and how to avoid unethical "ghost" return preparers.

Enhance your knowledge – Attend a free live IRS educational webinar

Webinars for tax practitioners

Tax law research and training opportunities

Stay informed: Access resources designed to enhance your expertise in tax preparation

Online publications