Earned Income Tax Credit (EITC) Due Diligence Requirements

• Overview
• Credits

Gain a better understanding of the earned income rules, common errors that can occur while claiming the credit, due diligence requirements, and current issues.This topic helps tax preparers and their employers responsible for preparing the EIC to understand EIC due diligence requirements, EIC most common errors and the use of due diligence to avoid them. The material also explains best practices and interviewing tips to achieve compliance, consequences for non-compliant preparers, employers of preparers, and your clients. This information is critical for understanding new regulations that affect any practitioner who prepares a tax return that claims the EIC.

Authors

Agenda

Summary of the Earned Income Credit Rules

Common Errors Claiming the Credit

EIC Due Diligence Requirements for Professional Tax Return Preparers

Penalties If Requirements Are Not Met

Consequences for the Tax Return Preparer

Consequences for the Preparer's Employer

Eligibility Rules

Tie-Breaker Rules

Due Diligence Questions to Ask to Avoid Qualifying Errors

Disallowance Due to Reckless or Intentional Disregard of EIC Rules

Disallowance Due to Fraud

Case Studies and Examples