Earned Income Tax Credit and Preparer Responsibilities

CPAs, EAs, CRTPs

This course provides an in-depth look at the Earned Income Tax Credit (EITC) and the heightened due diligence responsibilities it places on tax preparers. Participants will explore eligibility requirements, compliance pitfalls, and the serious consequences of noncompliance, with practical examples to reinforce key concepts. Gain the knowledge needed to confidently and accurately prepare returns for clients claiming the EITC.

• Recognize key definitions and terms used when discussing the EITC, such as earned income, due diligence, and a qualifying child
• Calculate refunds using threshold numbers, and tax liability and payment data
• Identify EITC error rates, frequency of fraudulent returns, and preparer penalties
• Identify the various steps within the due diligence process including the requirement for Form 8867 and the preparer’s obligation to evaluate the information provided by the taxpayer
• Recognize the eligibility requirements for the EITC
• Identify record-keeping requirements associated with EITC credit documentation