Table of Contents
Chapter 1 - Earned Income Credit
Rules
Nature of the Earned Income Credit
Earned Income Credit Eligibility
Eligibility Rules Applicable to
Everyone
Eligibility Rules Applicable to
Taxpayers with a Qualifying Child
Eligibility Rules Applicable if
Taxpayer Does Not Have a Qualifying Child
Common Earned Income Credit Errors
Earned Income Credit Errors
Involving Qualifying Children
When Two Taxpayers Claim a
Qualifying Child
Earned Income Credit Errors
Involving a Client’s Filing Status
Head of Household Filing Status
Earned Income Credit Errors
Involving Income Reporting
Earned Income Credit Errors
Involving Social Security Numbers
Chapter 2 - Due Diligence Requirements
The Statutory Requirement for Due
Diligence – IRC §6695
Specific Requirements Applicable to
EIC Due Diligence
Paid Preparer’s Due Diligence
Checklist – IRS Form 8867
Due Diligence Questions to Ask to
Avoid Qualifying Child Errors
Avoiding Income Reporting Errors
Avoiding Social Security Number
Earned Income Credit Errors
Paid Preparer’s Due Diligence
Checklist Best Practices
Figuring the Amount of the Earned
Income Credit
Calculating Earned Income for EIC
Purposes
Taxpayers Not Self-Employed,
Statutory Employees, Clergy or Church Employees
Self-Employed Taxpayers, Statutory
Employees, Clergy and Church Employees
When Should a Preparer Ask
Additional Questions – Examples
Knowledge Requirement Best
Practices
Record Maintenance Best Practices
Failure to Meet Due Diligence
Requirements
Consequences for the Tax Return
Preparer
Consequences for the Preparer’s
Employer
Consequences for the Client of EIC
Disallowance
Disallowance Due to Reckless or
Intentional Disregard of EIC Rules
Claiming EIC after Disallowance
Answers to Chapter Review Questions
Chapter 1 Review Questions Feedback
Chapter 2 Review Questions Feedback
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