Due Diligence Videos

Tax Preparation
The Preparer walks through the four basics of EITC due diligence, and how tax preparers can ensure they are following IRS requirements in The Case for Due Diligence .

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Employer Responsibility
Stuart, a new tax preparer is confident in his tax preparation skills, but the Preparer isn't quite sure that Stuart has actually been practicing EITC due diligence. Watch The Case of the Unexpected Handicap to see how the Preparer handles due diligence with his new employee.

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Qualifying Child
In The Case of the Too-Open Door , the Preparer meets a potential new client, Sunshine, who's got quite the extended family, and wants to know if she qualifies for the EITC. See what questions the Preparer asks her to see if she's eligible.

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Recordkeeping
Recordkeeping is important for those who are self-employed, especially to determine if they are eligible for the EITC. In The Case of the Teased Up Records , The Preparer talks with Mrs. Davis about how to reasonably reconstruct records for her hair styling business to meet EITC due diligence requirements, and determine if she is eligible.

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Audit
Max, a fellow tax preparer, is worried about an IRS audit. What will happen if the IRS finds errors or omissions? Can his friend, The Preparer, give him the facts about an EITC Due Diligence audit, and help relieve his worst fears? In The Case of the Anxious Preparer , The Preparer provides information about what happens during an EITC Due Diligence audit and best practice tips for tax preparers.

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AGI/Tie Breaker Rule
Watch Tax Tales: The Case of the Topsy Turvy Grandma where we'll see if Alice Jackson's AGI and residency meets the requirements to claim EITC. Will The Preparer do his due diligence, and ask the right questions?

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Disabled Child
Sit back to see Mr. Samuels and The Preparer in Tax Tales: The Case of the Unexpected Double and learn about the right questions that will determine if Mr. Samuels's child meets the tax law definition for disabled—and if Mr. Samuels' will qualify for the EITC.

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Residency Requirement
Does Mrs. Romero, who is recently divorced, qualify for the EITC—or does her ex-husband? See what questions The Preparer asks her about Mrs. Romero's daughter, and their living situation to find out if she meets the residency requirement for EITC in Tax Tales: The Case of the Angry Divorcée .

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Schedule C/Recordkeeping
Over or under reporting income is one of the most common EITC errors. Watch Tax Tales: The Case of the Missing Ledger as The Preparer determines if John's records are enough to satisfy if he is eligible for EITC.

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Qualifying Child
Mr. Kimble wants to claim EITC on his tax return for his niece and nephew. But The Preparer has a few questions to ensure his information stacks up—and to determine if he will qualify. Tax Tales: The Case of the Complicated Household showcases how Publication 4717 provides clients with information about what their responsibility is, and why preparers ask questions to determine eligibility.

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Tie Breaker Rule
Does Aunt Joan qualify for EITC in Tax Tales: The Case of the Unclear Aunt? The Preparer takes a closer look at Aunt Joan's AGI and if the tie-breaker rules apply to determine if she can claim the EITC.

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Page Last Reviewed or Updated: 02-May-2014