Earned Income Tax Credit Due Diligence

Enroll Now!
Price: $47.00 Date Published: November 21, 2010
Hours: 3.00 School: Tax Education CPE
Materials: Teacher: Charles Davidson
Member Rating: Not yet rated

Course Description

Earned Income Tax Credit Due Diligence explains how tax practitioners can comply with the four components of the EITC due diligence requirements, including how to accurately complete IRS Form 8867, Paid Preparer Earned Income Credit Checklist, how to accurately compute the EITC, and how to demonstrate compliance through knowledge of recordkeeping. The course also touches on EITC fraud and penalties for practitioners who are not in compliance.

This course has been approved by the Internal Revenue Service as a continuing professional education program for Enrolled Agents.

Enroll in this Course

Course Materials

This chapter presents an overview of the course. Read the learning objectives and key terms for this course. Understand the nature of the problem.

  Material Name Type Size Length
Legal Information PDF 312.75 KB 2 pages
Course Overview PDF 120.78 KB 1 page
The Nature of the Problem PDF 154.19 KB 2 pages

Learn the four key due diligence requirements that all tax preparers must follow when preparing claims for Earned Income Tax Credit.

  Material Name Type Size Length
Due Diligence Requirements PDF 693.12 KB 7 pages

The IRS has a due diligence compliance program aimed at tax return preparers. Learn about this program as well as ways you can prevent EITC errors and help eliminate fraud.

  Material Name Type Size Length
Compliance and Fraud Prevention PDF 968.19 KB 9 pages

Course wrap-up

  Material Name Type Size Length
Summary PDF 111.04 KB 1 page
Learning Activity PDF 118.40 KB 1 page
Test Name Pass Questions
Final Exam 70.00% 7

Course Reviews

Charles Davidson

Charles H. Davidson is a California Registered Tax Preparer (CRTP). He is the owner and principle author/instructor with Accelerated Education Systems, a private company that specializes is educational programs the tax industry.

Charles holds a Bachelor of Arts (with distinction) in Christian Ministry Leadership from Simpson University (2003). He is currently a candidate for a Master of Science in Higher Education from Drexel University (2011). In addition to his work in the tax industry, Charles has held positions in corporate and community training, technical writing, and public speaking. He has given CPE-qualified presentations to local and statewide professional organizations including the California Society for Enrolled Agents (CSEA). He regularly appears on local news programs and writes for several online blogs and websites where he shares his expertise on tax issues.

He began his career as a tax preparer working for a local H & R Block franchise. He experienced success very early, establishing himself as a competent and knowledgeable professional who prepared highly accurate returns and who generated substantial revenue for the company. He quickly became an office leader and someone to whom employees could turn to answer questions and assist with complicated tax returns.

After a short time, Charles was asked to become an instructor with the company’s Tax Training School. After teaching the Basic Income Tax Course (ITC) as well as several advanced courses for the company’s CRTPs and Enrolled Agents, Charles was promoted to Assistant Office Manager and Senior Tax Professional.

In this capacity, he quickly learned the entire tax business, including back office operations. As one of a handful of full-time, year-round employees, Charles worked with clients throughout the year, helping them respond to IRS notices and requests for information.

Charles left H&R Block when the franchise experienced a downturn in local market conditions. He partnered with a local bookkeeper to help her create and expand her tax preparation business. In order to staff the new tax operation, Charles created an educational program aimed at new tax preparers. The program was approved by the California Tax Education Council (CTEC) as a qualifying education program. Not only were courses offered in person, in a small storefront classroom rented just for that purpose, but online courses were offered to students who wanted a self-paced program they could complete at home. In the first year the program was offered, over 100 new tax preparers were trained according to California’s high standards for education.

In 2007, Charles was appointed by Treasury Secretary Henry Paulson to serve a 3-year term on the Taxpayer Advocacy Panel (TAP), a federal advisory committee with the goal of recommending improvements to IRS customer service and programs. As a representative from Area 7, he represented taxpayers from California, Alaska, Hawaii, and Nevada by bringing grassroots issues to the attention of the IRS. During his three years on the panel, Charles served on the Small Business / Self-Employed (SBSE) committee and the Volunteer Income Tax Assistance (VITA) committee.

In his first year on the panel, he served as vice-chair of Area 7. In 2008, his peers on that committee elected him to serve as chair. In 2009, the entire panel elected him to serve as national chair. In that capacity, Charles set the agenda and scope of work of the panel, led the Joint Committee (leadership team), and reviewed each of the recommendations presented to the IRS.

In September of 2009, Charles and the leadership team met with Commissioner Douglas Shulman and National Taxpayer Advocate Nina Olson to present the TAP annual report and to discuss issues of concern to taxpayers.

Charles is especially proud of TAP’s two major accomplishments in his last year on the panel. During the summer of 2009, Commissioner Shulman asked the TAP to prepare a recommendation on tax preparer regulation. Charles headed a team of TAP members who created a report based on input received from taxpayers throughout the country. The final recommendation of the IRS on the issue of tax preparer regulation included some of the recommendations presented in this report.

The TAP also responded to a request from the President’s Economic Recovery Advisory Board (PERAB) to submit recommendations for tax reform. Charles solicited ideas from TAP members and prepared a report that incorporated five individual recommendations, including Earned Income Tax Credit, Alternative Minimum Tax, phase-out provisions, retirement accounts, and tax code simplification. The leadership team was invited to appear before the tax reform subcommittee in December 2009 to present and answer questions about its recommendations.

Charles’ annual report to Treasury Secretary Geithner, IRS Commissioner Douglas Shulman, and National Taxpayer Advocate Nina Olson, will be issued in the summer of 2010.

In 2007, Charles decided to expand the education program he created for the bookkeeping and tax service into a full-fledged tax training school. He launched Accelerated Education Systems that year and began developing training programs for new tax preparers in California. The company is set to launch the online tax education program in 2010.

Accelerated Education Systems in approved by the California Tax Education Council (approved provider no. 3066). The company is currently seeking approval from the IRS Office of Professional Responsibility to become a program sponsor, offering educational programs for Enrolled Agents.

Although Charles continues to prepare tax returns for a limited number of clients, he has shifted his focus to developing educational programs for independent tax professionals.

Author's Profile Page


Login First!

You must be a Learnopia member and you must be logged in to contact a teacher.

Login | Register

Share this Course

Enroll Now!