Question

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 tax year? O is your spouse employed? Mark for follow up Question 2 of 18. Which of the following records must a Tax Professional keep? O Copies of any documents provided by a taxpayer which the Tax Professional relied upon to determine the taxpayer's el O Documentation of any inquiries the Tax Professional made to comply with the due diligence requirements as well as the O A record of the individual who provided the information used to prepare the credit claimed O All of the above Mark for follow up Question 3 of 18. Failure to meet the 2019 due diligence requirements for EITC, AOTC, HOH, and CTCIACTCIODC claimed on one retu Maximum penalty of $530, per return, assessed against the paid tax preparer Maximum penalty of 5530, per return, assessed against the taxpayer • Masimum penalty of 52,120, per return assessed against the paid tax preparer Maximum penalty of $2,120, per return, assessed against the taxpayer. Mark for follow up Question 4 of 18. Which of the following is NOT TRUE about the due diligence requirements? Tax Professionals need to make additional inquines if the taxpayer's responses appear incorrect, inconsistent or incompl Tax Professionals need to complete and submit Form 3867 with the return it any one of the following are claimed on the Tax Professionals must always obtain documentation to prove the relationship and residency of a quattina chid before e e

Answer 1

Question 2 of 18 : All of the above

A tax professional should maintain copies of any documents provided by the taxpayer on which he relied upon , documentation of any inquiries made by the professional to comply with due diligence requirements and record of the information used to prepare the credits claimed in the return.