Due Diligence: Filing Status and EIC Eligibility
Author: Susan Harper
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
You must carefully exercise your due diligence when preparing a return which includes Earned Income Credit, the Child Tax Credit, the Additional Child Tax Credit, the Credit for Other Dependences, and the American Opportunity Tax Credit. With the Tax Cuts & Jobs Act of 2017, your due diligence also expanded to include the Head of Household filing status. You must interview your clients and obtain appropriate and sufficient information to determine eligibility as well as amount.
Join Susan Harper, Certified Fraud Examiner, and former IRS Internal Revenue Agent of 24 years. This course will explore your due diligence requirements for Earned Income Credit and the Head of Household filing status, the reasonableness standard, penalties, exceptions, and more.
With 20 years instructing CPE courses, Susan will deliver an entertaining and informative discussion to ensure you meet your due diligence requirements.
Publication Date: December 2025
Topics Covered
- Due Diligence Requirements for Earned Income Tax Credit (EITC)
- Due Diligence Requirements Head of Household (HoH) Filing Status
- EIC Red Flags
- Reasonableness Standard
- Penalties
- Penalty Exception
Learning Objectives
- Identify the filing status due diligence requirements
- Identify the EIC due diligence requirements
- Recognize EIC red flags
- Explain how to apply the reasonableness standard
- Explain how to avoid penalties for failure to comply
- Explain the penalty exceptions
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
None
Advance Preparation
None
