Overview

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.

 

CPE Acceptance

 

CPE Course For:

CPAs in most states (chart)
Other Professionals (chart)
 AFSP
 EA
 Tax Preparer

Not sure?  Contact us!

Online Course Materials

This is a fully online materials course that does NOT require the separate purchase of a book.

How will I access the materials?

Once you login to your course, click on the materials link to access the PDF materials and

  • Read online
  • Download to your computer
  • Print out

Details

FunCPE Course #: PWX0221
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
Prerequisites: None
Advance prep: None
Course level: Overview
Last reviewed/updated: 01/14/21
Expiration: One year from enrollment

Learning objectives

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.