4 Credits: Taxes
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.
After completing this course, you 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 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.
- 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.
March 28, 2023
There are no prerequisites.
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02306-23-S
IRS Federal Tax Law Credits: 4
CTEC Course Number: 2071-CE-1875
CTEC Federal Tax Law Credits: 4
CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.
CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at www.ctec.org.
Meet The Experts
Paul J. Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.