After completing this course, you will be able to:

Chapter 1

• 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.

Chapter 2

• 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.

Chapter 3

• 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 8862following disallowance of an EIC claim;
• Determine the year in which an IRS Form 8862must 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.

Chapter 4

• 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.