Inside the Earned Income Credit examines the earned income credit rules, the common errors made in claiming the credit, the consequences of its disallowance by the IRS, and the requirements imposed on tax return preparers for earned income credit due diligence. The course discusses the rules applicable to everyone, the rules applicable only to individuals with a qualifying child, and the rules that apply only when the taxpayer has no qualifying child. The requirements for tax return preparer due diligence are also examined, with best practices are identified.
Upon successful completion of this course, participants will be able to:
- Recognize the EIC eligibility rules that apply to all taxpayers;
- Identify the EIC eligibility rules applicable to taxpayers who have a qualifying child;
- List the EIC eligibility rules that apply to taxpayers who do not have a qualifying child; and
- Recognize how the EIC for which an eligible taxpayer qualifies is determined.
- Recognize the incidence of errors in claiming the earned income credit and their probable causes;
- Identify the estimated impact of earned income credit errors on federal revenue;
- List the most common earned income credit errors and their potential problem areas; and
- Recognize the additional questions tax preparers need to ask if taxpayer-provided information appears incorrect, inconsistent or incomplete.
- List the principal tools used by the IRS to verify the propriety of EIC claims and to prevent or recover improper EIC payments;
- Identify the additional requirements imposed on taxpayers claiming the EIC following disallowance;
- Recognize the exceptions applicable to the requirement that a taxpayer file IRS Form 8862 following disallowance of an EIC claim;
- Determine the year in which an IRS Form 8862 must be filed to claim EIC after the IRS has disallowed it; and
- Recognize the duration of the prohibition against filing for the EIC in the event a taxpayer's EIC error is determined to be the result of reckless/intentional disregard of EIC rules or fraud.
- List the due diligence requirements a tax return preparer must meet when preparing a tax return claiming the earned income credit;
- Recognize the records a tax return preparer is required to keep to support a client's claim for the earned income credit;
- Identify the penalties that may be imposed on a tax return preparer for failing to comply with due diligence requirements when preparing a client's tax return claiming the earned income credit; and
- Identify the sanctions that may be imposed on an employer whose employee fails to comply with EIC due diligence requirements.
Choose Your Preferred Format
Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.
Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.
Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.
Back to top