Tax & financial Coaching Services

Required Documents and Forms:

GS Financial Interview Worksheet

W2’s, 1099’s, 1098’s, daycare statements, among others.

Prior year tax return

(Only IRS required records would be confidentially kept for 3 years)

EITC Due Diligence Requirements

Tax return preparers who prepare any return or claim for refund that includes the Earned Income Tax Credit (EITC) must meet specific due diligence requirements. Failure to comply with due diligence requirements with respect to determining eligibility for, or the amount of EITC could lead to a $510 penalty for each such failure under IRC 6695(g). In addition to monetary penalties, return preparers or tax preparation firms can also face suspension or even expulsion from IRS e-file, other disciplinary action from the IRS Office of Professional Responsibility, and injunctions prohibiting the preparer from preparing tax returns or restricting the types of tax returns that may be prepared.

The IRS can also penalize an employer or employing firm if an employee fails to comply with the EITC due diligence requirements.  

There are four basic due diligence requirements for preparers relating to EITC:

Completing and Submitting the Eligibility Checklist - Form 8867
Computing the Credit
Knowing and Understanding EITC Rules and Regulations
Keeping Records.