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Avoid Penalties by Doing Your Due Diligence

Tax News Briefs

Avoid Penalties by Doing Your Due Diligence

New Due Diligence Requirements For tax year 2020, the Consolidated Appropriations Act, 2021, allows eligible taxpayers to elect to use their 2019 earned income to figure the 2020 earned income credit (EIC) or additional child tax cred... TheTaxBook

May/June 2021, Tax News Briefs, penalties, partnership, Schedule K-1, earned income tax credit, due diligence, EIC, additional child tax credit, ACTC, earned income, capital account, Form 1065, §6698, §6721, §6722, generally accepted accounting principles, GAAP, §6662, §704(b)

Preparer Due Diligence Under IRC §6695(g)

Feature Article

Preparer Due Diligence Under IRC §6695(g)

Section 6695(g) was added to the Internal Revenue Code (IRC or the Code) by P.L. 105-34, the Taxpayer Relief Act of 1997. It was one of several statutory changes intended to improve earned income credit (EIC) reporting compliance. As originally enacted, the law... Patrick D. Dimmitt, EA

May/June 2021, Feature Article, Circular 230, noncompliance, Form W-2, due diligence, EIC, additional child tax credit, ACTC, CTC, ODC, AOTC, HOH, child tax credit, Taxpayer Relief Act of 1997, Form 8867, §6695(g), Form 1098-T, §1.6695-2