030: Earned Income Tax Credit (EITC) Due Diligence Requirements - published 06/25/2018

The Earned Income Tax Credit (EITC) is a refundable tax credit that has a significant impact on the US Treasury’s revenue. EITC is a source of a disproportionately large number of errors in tax returns. In this practical webinar, you will learn about the new regulations affecting tax returns that claim the EITC. You will learn various best practices and interviewing tips to achieve compliance.

Among other things, you will learn about:

• EITC due diligence requirements
• EITC most common errors
• Using due diligence to avoid errors
• Consequences for non-compliant tax preparers, employers of preparers, and clients

Upon course completion, you will be able to:

• Identify the EITC eligibility rules that apply to all taxpayers, including taxpayers who have a qualifying child and taxpayers without a qualifying child
• List the most common EITC errors and their potential problem areas
• Determine the additional questions tax preparers need to ask if taxpayer-provided information appears incorrect, inconsistent, or incomplete
• Outline the due diligence requirements a tax return preparer must meet when preparing a tax return claiming the EITC
• Identify the records a tax return preparer is required to keep to support a client’s claim for the EITC
• Recall 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 EITC
• Cite the sanctions that may be imposed on an employer whose employee fails to comply with EITC due diligence requirements
• Determine the additional requirements imposed on taxpayers claiming the EITC following disallowance and the exceptions to those requirements