Question

Question 38 of 65. While tax preparation software helps meet due diligence requirements, which test cannot be satisfied by the software alone? O Completing an eligibility checklist. Complying with the knowledge requirement. Retaining a record of how and when EITC information was obtained, and the identity of the person who provided it. Computing the amount of the credit. Mark for follow up

Answer 1

If a tax return preparer uses a software to complete the due diligence requirements, it will be much simpler for them to complete the same, software helps them meet the following

• Complete an eligibility checklist,
• Retaining a record regarding data entry,
• Computing the amount of credit,

Bit the software cannot, without the human intervention, comply with the knowledge requirement. Which requires asking questions to the tax payer cannot be done by software alone.