01/25/2026
Examples of EIC checklists due diligence notes
1. AOTC Credit
The taxpayer stated that she paid out-of-pocket expenses for her tuition. She was asked if she or anyone else had claimed the American opportunity tax credit. The taxpayer also stated that she is within the first four years of her undergraduate program. She has been advised that if she or anyone else has client this Credit for more than four years.
2. Expenses
The taxpayer reported higher than usual cell phone expenses. I asked client for clarification regarding the large expenses. Tax explained that the bill included three phone lines and additional charges at least on her phone line. All other expenses reported and income appears consistent in accurate. The taxpayer has been advised that any event of an audit receipts and supporting documents will need to be provided.
3. Sample of relationships are dependent.
The taxpayers relationship residency age and support where determine based on class interview questions and information provided on the intake form. The taxpayer stated she is the console parent and the father of the dependence does not reside with them in the same home. The taxpayer receives child support for both dependent the information provided by the client appears to be consistent, accurate, and complete. The taxpayer has been informed that any event of an audit supporting documentation must be provided for all credit .
4. Relationship residency age and qualifying child or dependent.
Text Paris relationship, residency age and support for the qualifying child were determined through completion of the EIC interview questions and information provided on the intake form. The taxpayer stated she is the custodial parent. The child resides with the taxpayer for more than six months of the year, the taxpayer confirmed she provided more than half of the child support information provided, appears consistent, accurate, and complete. The taxpayer was advised that the supporting documentation must be provided in the event of an IRS Audit.
5. Multiple dependence or one non-qualifying dependent.
The taxpayers relationship, residency age and support were verified using the EIC due diligence, questions and client intake form. The taxpayer stated she is the custodial parent of two dependent one dependent, did not reside with the taxpayer for more than six months of the year and was therefore not client for EIC purposes the taxpayer receives child support for both dependent information provided by the taxpayer appears reasonable, consistent and complete. The taxpayer was informed that documentation may be required if audited.
6. Head of household and EIC.
The taxpayers, filing status and earn income. Credit eligibility were determined through due diligence, questioning and review of the intake form. The taxpayer stated she maintained the household and is the custodial parent of the qualifying child or children who reside with her for more than six months of the year, the taxpayer provided more than half of the household support Information provided appears accurate, complete and reasonable. The taxpayer knowledge that documentation must be retained and provided if requested by the IRS.
