Posted by: magorkhe1 January 25, 2017
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Hi Mayagrg:
While filing taxes, tax prepare has to be careful about EIC. If found not due-diligence IRS may be fined $510 each violation.
I encountered with a client. She has 20 years old daughter and she is claiming as dependent child and a full time school. But she does not have 1098-T and No Educational Expenses to substantiate it . I took it as a red flag and she was not happy with little refund. Owner reviewed it , checked full time student and allowed $2200 EIC. The client was happy with fat check and my owner was happy with 445 tax filing fee.
Please suggest: How to handle such cases?
While filing taxes, tax prepare has to be careful about EIC. If found not due-diligence IRS may be fined $510 each violation.
I encountered with a client. She has 20 years old daughter and she is claiming as dependent child and a full time school. But she does not have 1098-T and No Educational Expenses to substantiate it . I took it as a red flag and she was not happy with little refund. Owner reviewed it , checked full time student and allowed $2200 EIC. The client was happy with fat check and my owner was happy with 445 tax filing fee.
Please suggest: How to handle such cases?