EITC Due Diligence

Upon successful completion of this course, participants will be able to:

Chapter 1

• Recognize the earned income credit eligibility rules that apply to all taxpayers, that apply to taxpayers who have a qualifying child, and apply to taxpayers without a qualifying child;
• List the most common earned income credit errors and their potential problem areas; and
• Identify the additional questions tax preparers need to ask if taxpayer-provided information appears incorrect, inconsistent or incomplete.

Chapter 2

• 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;
• Recognize the sanctions that may be imposed on an employer whose employee fails to comply with EIC due diligence requirements; and
• Identify the additional requirements imposed on taxpayers claiming the EIC following disallowance and the exceptions to those requirements;