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. In a recent year, 147 million individual federal tax returns were filed, and about 17% claimed the Earned Income Credit. Based on that percentage, it would not be unexpected that, in the years ahead, approximately one taxpayer in every six will claim the EIC. Approximately 70% of federal income returns claiming the earned income credit are prepared by professional tax return preparers.
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.
3 Credit Hour .PDF Based Course