The study guide is provided to guide you through the course material in a step by step format.
Course material is a PDF document.
Chapter 1 – Earned Income Credit Rules
Assignment: Chapter 1 <<>> Review Questions Group #1: # 1-5
When you have completed this chapter, you should be able to:
- Recognize the EIC eligibility rules that apply to all taxpayers;
- Identify the EIC eligibility rules applicable to taxpayers who have a qualifying child;
- List the EIC eligibility rules that apply to taxpayers who do not have a qualifying child; and
- Recognize how the EIC for which an eligible taxpayer qualifies is determined.
Chapter 2 – Earned Income Credit Errors
Assignment: Chapter 2 <<>> Review Questions Group #2: #1-5
When you have completed this chapter, you should be able to:
- Recognize the incidence of errors in claiming the earned income credit and their probable causes;
- Identify the estimated impact of earned income credit errors on federal revenue;
- List the most common earned income credit errors and their potential problem areas; and
- Recognize the additional questions tax preparers need to ask if taxpayer-provided information appears incorrect, inconsistent or incomplete.
Chapter 3 – EIC Disallowance
Assignment: Chapter 3 <<>> Review Questions Group #3: #1-5
When you have completed this chapter, you should be able to:
- List the principal tools used by the IRS to verify the propriety of EIC claims and to prevent or recover improper EIC payments;
- Identify the additional requirements imposed on taxpayers claiming the EIC following disallowance;
- Recognize the exceptions applicable to the requirement that a taxpayer file IRS Form 8862 following disallowance of an EIC claim;
- Determine the year in which an IRS Form 8862 must be filed to claim EIC after the IRS has disallowed it; and
- Recognize the duration of the prohibition against filing for the EIC in the event a taxpayer’s EIC error is determined to be the result of reckless/intentional disregard of EIC rules or fraud.
Chapter 4 – EIC Due Diligence
Assignment: Chapter 4 <<>> Review Questions Group #4: #1-5
When you have completed this chapter, you should be able to:
- List the due diligence requirements a tax return preparer must meet when preparing a tax return claiming the earned income credit;
- Recognize the records a tax return preparer is required to keep to support a client’s claim for the earned income credit;
- Identify 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 earned income credit; and
- Identify the sanctions that may be imposed on an employer whose employee fails to comply with EIC due diligence requirements.