Would preparing a EITC return with Form 8862 cause a EITC audit on me?

[AccTaxMan]

I have a client (married couple) who is qualified for EITC this year after I have gone through the due diligence process. But the efile has been rejected. Then I found out the reason is that they have filed a questionable tax return with EITC before (about 10 years ago) and had been rejected. I was not the one who prepared that questionable EITC tax return. His former tax preparer did it.

Now he is required to file a Form 8862 with the tax return in order to claim the EITC this year. My question is...if I prepare the Form 8862 and go ahead to file the tax return for someone whose EITC claim has been rejected before, would it cause an EITC audit on me?

[RLymanC]

EIC Audit

Would it matter??
If he is qualified for EIC file it.

[Bees Knees]

If you are afraid to do a tax return because IRS might audit you (which may or may not be reality), then refuse to do the return.

With IRS and Congress imposing stiffer penalties and requiring tax preparers to perform audit type services for clients, it may be prudent to start refusing to do returns for certain high-risk clients. Tell the client to go to one of those free-file volunteer centers to have their tax return done.

[ToledoEd]

You have already done the return, but you missed asking the question if they are required to file the Form 8862. One return will not bring the wrath of the IRS on you, but it does teach you a question to ask future clients. I would not be overly worried about the IRS in this case because the reason for the 8862 is from 10 years ago. Go ahead and file the 8862, which can be filed electronically and make sure you doccument the additional info.