The Earned Income Credit (EIC) is a refundable tax credit that has a significant impact on United States revenue. It is also the source of a disproportionately large number of errors in tax returns in which a claim for it is made.

This course briefly summarizes the earned income credit rules, examines the common errors committed when claiming the credit, discusses the EIC due diligence requirements imposed on professional tax return preparers, and identifies the sanctions to which preparers and their employers may be subject for a failure to meet expected due diligence requirements.

Upon completion of this course, students should be able to:

• recognize the earned income credit eligibility rules
• identify the common errors committed in connection with claiming the earned income credit
• recognize the consequences for the taxpayer of the IRS’ disallowance of the earned income credit
• identify the tax return preparer’s earned income credit due diligence requirements
• pinpoint the sanctions that may be applied on a tax return preparer and his or her employer for a failure to meet due diligence requirements

Tax Year: 2022