Four due diligence requirements are as follows:-
1. Complete and Submit Form 8867:-
2. Complete and keep all worksheets used to compute the credit:-
Complete the appropriate refundable credit worksheets from the instructions from for the Form 1040 series or the Form 8863 instructions or complete document(s) with the same information. The worksheets show what to consider in the computation.
3. Apply the knowledge requirement:- Not know or have reason to know any information used to determine a client’s eligibility for, or the amount of the refundable credit is incorrect.
4. Keep Records:- •
If a tax preparer fails to comply with the due diligence requirements, the IRS can assess a penalty against the tax preparer and the employer for each failure. What is the penalty amount for each failure? . $510. , $2,120.
1) All of the following are due diligence requirements a paid tax preparer must meet when filing a return for a taxpayer claiming EITC, CTC/ACTC, ODC, AOTC, and/or head of household filing status EXCEPT: A) Investigate and verify the accuracy of information the taxpayer provides to show eligibility for the credits and/or head of household filing status. B) Complete all worksheets used to compute the credit. If the worksheet is completed by hand, keep a hard copy in the taxpayer's...
All of the following are requirements for a Tax Professional to meet the due diligence knowledge requirement when preparing a return for a taxpayer claiming the Earned Income Credit, the Child Tax Credit/Additional Child Tax Credit, and/or the American Opportunity Credit EXCEPT __________. Refusing to ignore the implications of information furnished to or known by the preparer. Having no knowledge or reason to know that any information used in determining the taxpayer's eligibility for, or the amount of, a refundable...
Failure to meet the due diligence requirements when a tax return claims EITC, CTC/ACTC, ODC, AOTC, and/or head of household filing status could result in a maximum penalty of _________.
Explain the term due diligence in your own words and what reasonable steps an officer must take to ensure the business complies with its work health and safety obligations and the officer is exercising and demonstrating due diligence and general duty requirements?
Exercising due diligence is a requirement for paid preparers when preparing a taxpayer's return claiming the Earned Income Credit, the Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents, the American Opportunity Tax Credit, and Head of Household (HOH) Filing Status. All of the following are due diligence requirements EXCEPT __
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
Exercising due diligence is a requirement for paid preparers when preparing a taxpayer's return claiming the Earned Income Credit, the Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents, the American Opportunity Tax Credit, and Head of Household (HOH) Filing Status. All of the following are due diligence requirements EXCEPT __________. Completion of eligibility checklist. Knowledge. Record retention. Verification of employment.
Discuss the implications for "due diligence" for corporations and workers. In Labor Studies
Test - Due Diligence Section 1 Question 1 of 18. Penny, who wants to claim BTC, informs her Tax Professional that she is still married but currently doesn't live her nine-year-old daughter, who is eligible to be claimed as her dependent. To determine her filing status, which What is your spouse's AGI? Did your spouse live with you during the first six months of the year? O Did your spouse live with you in the last six months of the...