EITC Due Diligence

2 Credits: Taxes


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EITC Due Diligence

Course Level
CPE Credits

2 Credits: Taxes

Course Description

In this detailed course on the Earned Income Tax Credit (EITC), tax professionals will benefit from a thorough exploration of the EITC eligibility rules, an area that affects a significant portion of tax returns in the United States. The course offers the dual benefits of identifying common EITC errors and equipping you with strategies to avoid them, thereby enhancing your proficiency and reliability as a tax preparer. It delves into the crucial aspect of EITC due diligence, empowering you with knowledge about the specific requirements and record-keeping practices necessary for supporting EITC claims. Additionally, the course highlights the potential penalties and employer sanctions associated with EITC non-compliance, ensuring that you are well-versed in all aspects of EITC regulations. By the end of this course, you will not only have a comprehensive understanding of the EITC process but also the skills to apply this knowledge effectively in your professional practice, thereby increasing your value to clients and enhancing your credibility in the field.

SOI Tax Stats-Individual Income Tax Returns may be accessed at:

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Learning Objectives

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

Chapter 1

  • Identify the earned income tax credit eligibility rules that apply to all taxpayers, including taxpayers who have a qualifying child and taxpayers without a qualifying child
  • List the most common earned income tax credit errors and their potential problem areas
  • 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 tax credit
  • Identify the records a tax return preparer is required to keep to support a client’s claim for the earned income tax 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 tax credit
  • Cite the sanctions that may be imposed on an employer whose employee fails to comply with EITC due diligence requirements
  • Identify the additional requirements imposed on taxpayers claiming the EITC following disallowance and the exceptions to those requirements
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Course Specifics

Course ID
Revision Date
January 30, 2024

There are no prerequisites.

Advanced Preparation


Number of Pages

Compliance Information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02432-24-S
IRS Federal Tax Law Credits: 2
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-1061
CTEC Federal Tax Law Credits: 2

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

Meet The Experts

Paul J. Winn

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.