Due diligence requires paid preparers to satisfy four tests when a return claims Earned Income...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Due diligence requires paid preparers to satisfy four tests when a return claims Earned Income Credit (EIC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), and head of household (HOH) filing status. What are the four tests? Complete Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents, submit all worksheets used to compute any of these four credits, ask questions, and take notes. Complete and submit Form 8867, Paid Preparer's Due Diligence Checklist, complete and keep all worksheets used to compute any of these four credits, satisfy the knowledge requirement, and satisfy the documentation requirement. Does this make sense, reasonable basis, substantial authority, nonfrivolous position. Knowledge, prepare, review, and file the tax return
A. Complete Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents, submit all worksheets used to compute any of these four credits, ask questions, and take notes.
B. Complete and submit Form 8867, Paid Preparer's Due Diligence Checklist, complete and keep all worksheets used to compute any of these four credits, satisfy the knowledge requirement, and satisfy the documentation requirement.
C. Does this make sense, reasonable basis, substantial authority, nonfrivolous position.
D. Knowledge, prepare, review, and file the tax return.
IT CAN ONLY BE ONE ANSWER CHOICE, IF YOUR NOT GONNA GUVE THE ANSWER DO NOT REPSOND PLS.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!