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, 148.7 million individual federal tax returns were filed, and more than 19% claimed the Earned Income Credit. Approximately 70% of federal income returns claiming the earned income credit are prepared by professional tax return preparers.
This course summarizes the EIC 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.
Online Course Materials
Fully online PDF materials included in course.
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- Clickable table of contents
- Learning objectives--each section
- Review questions--each section
- Answers to review questions + explanations
- Glossary of terms used
- Worksheets, forms and examples
- Index with page numbers
* Fully searchable *
Fun CPE Course #: PWX0222
Materials: Online materials
Format: Interactive self-study
Subject: Federal Tax
Exam questions: Final-28 multiple choice
Document length: 43 pages
Passing score: 70% | Unlimited retakes
Advance prep: None
Course level: Overview
Last reviewed/updated: 01/01/22
Expiration: One year from enrollment
Upon completion of this course, you should be able to:
- Recognize the earned income credit eligibility rules;
- List the common errors committed in connection with claiming the earned income credit;
- Describe the consequences for the taxpayer of the IRS’ disallowance of the earned income credit;
- Identify the tax return preparer’s earned income credit due diligence requirements; and
- List the sanctions that may be applied on a tax return preparer and his or her employer for a failure to meet due diligence requirements.