Due Diligence and the EITC

Overview

This course covers tax preparers’ due diligence requirements for filing earned income tax credit (EITC) claims, aimed at reducing incorrect and fraudulent claims. It reviews the 14 eligibility rules, common errors detected by the IRS, and due diligence obligations. The course also explains the four ways the IRS expects due diligence to be applied, using a checklist and case studies, and outlines penalties for incorrect EITC claims. Suitable for both new and experienced tax practitioners.

Learning Objectives

  • correctly apply the 14 different rules that apply to taxpayers' eligibility to claim the EITC
  • identify the three most common errors in filing claims for the EITC detected by the IRS and recognize the due diligence measures that tax preparers can take to avoid these errors
  • identify the four types of due diligence that tax preparers must exercise when preparing an EITC claim
  • identify the purpose of IRS Form 8867 and the type of information it contains
  • given basic personal details of a taxpayer wishing to claim EITC, recognize the types of questions a tax preparer should ask to determine eligibility for EITC
  • identify the types of penalties and other consequences that may apply to taxpayers, tax preparers, and tax preparation firms in cases where an incorrect claim for EITC has been filed

Tax Year: 2022

Designed For

Enrolled Agents and other tax professionals

Advanced Preparation

None

WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. For more information regarding WebCE administrative policies such as refunds, cancellations and concerns, please contact Support Services at 877-488-9308.

Find this course for your license:

License or Certification

Regulator

Type