Code 600 rejects

[powerage]

We have had 3 this year already, and I've never seen one before. We specifically ask the client if they were sent anything by the IRS requiring Form 8862 and the clients answered no. Re-submit with the correct info and then the return is accepted.

[David1980]

The taxpayers think if they admit to a prior disallowance, or that they didn't receive EIC even though they claimed it in a prior year, it will hurt them this year. So by omitting facts they hope the return goes through and they'll get EIC.

[taxea]

Maybe your questioning is not specific enough...are these new clients? Do you ask for a copy of the prior year?

I know the client doesn't have to sign the qualifying questionaire but I do ask the questions and ask them to initial it for my records,

[powerage]

The question is 'have you received a letter from the IRS saying you were required to file Form 8862' and I explain what the form is.

[Larmil]

Powerage

Is you sig the modern day AMWAY?

[powerage]

Is you sig the modern day AMWAY?

If you mean my website, no. It is a blog with almost 4,000 articles posted, most related to internet marketing topics.

[David1980]

The question is 'have you received a letter from the IRS saying you were required to file Form 8862' and I explain what the form is.

Must be what the software asks?

Form instructions:

General Instructions
Purpose of Form
You must complete Form 8862 and attach it to your tax return if
both of the following apply.
1. Your EIC was reduced or disallowed for any reason other
than a math or clerical error for a year after 1996.
2. You now want to take the EIC and you meet all the
requirements.

So if they had reduced/disallowed EIC in a prior year (after 1996) they need to do it, whether they got a letter or not. In fact, many taxpayers go for years not getting deficiency letters because their address is not current with the IRS. Then when they file a return with a correct address they get these letters for prior year returns (because the IRS now has a correct address.)

But the solution and problem are always the same. Problem: Code 600 reject. Solution: 8862 (and probably a little extra due diligence to find out why they couldn't get it in a prior year, and if that still applies to the current year. They could get blocked from EIC for 10 years if it gets to fraud, and it could be if they continue claiming EIC when not qualified and have reason to know they're not...)