H&R BLOCK INCOME TAX COURSE COMPLETE ACTUAL EXAM WITH ALL
566 QUESTIONS AND VERIFIED ANSWERS GRADED A+ LATEST VERSION
2024-2025.
Adjusted Basis - ANSWER-The Cost or other original basis of property reduced by adjustments such as
depreciation allowed or allowable & increased by Capital Improvements & other adjustments.
Earned Income Credit Due Diligence four requirements - ANSWER-1) Complete & submit an eligibility
checklist
2) Compute the amount of credit
3) Comply with the knowledge requirement
4) Retain records
EIC due diligence failure - ANSWER-Subject to a $500 penalty for each occurrence
Form 8867 - ANSWER-- Paid Preparer's EIC Checklist
- Must be based on info provided by taxpayer to Tax Professional
- Must ask every taxpayer ever question on this list every time.
Tax Professional knowledge requirement - ANSWER-Tax Preparers are responsible for knowing the tax
law and using that knowledge to ensure that the correct questions are asked to get all the relevant facts
as they apply to each EIC return.
Does this make sense? - ANSWER-- Tax Professional must not know or have reason to know that any
information used by the Tax Professional in determining the taxpayer's eligibility for, or the amount of,
the EIC is incorrect.
- Tax Professional must make reasonable inquires and the client's answers at the time of the interview.
To comply with EIC - Records Retention Requirement: - ANSWER-MUST:
566 QUESTIONS AND VERIFIED ANSWERS GRADED A+ LATEST VERSION
2024-2025.
Adjusted Basis - ANSWER-The Cost or other original basis of property reduced by adjustments such as
depreciation allowed or allowable & increased by Capital Improvements & other adjustments.
Earned Income Credit Due Diligence four requirements - ANSWER-1) Complete & submit an eligibility
checklist
2) Compute the amount of credit
3) Comply with the knowledge requirement
4) Retain records
EIC due diligence failure - ANSWER-Subject to a $500 penalty for each occurrence
Form 8867 - ANSWER-- Paid Preparer's EIC Checklist
- Must be based on info provided by taxpayer to Tax Professional
- Must ask every taxpayer ever question on this list every time.
Tax Professional knowledge requirement - ANSWER-Tax Preparers are responsible for knowing the tax
law and using that knowledge to ensure that the correct questions are asked to get all the relevant facts
as they apply to each EIC return.
Does this make sense? - ANSWER-- Tax Professional must not know or have reason to know that any
information used by the Tax Professional in determining the taxpayer's eligibility for, or the amount of,
the EIC is incorrect.
- Tax Professional must make reasonable inquires and the client's answers at the time of the interview.
To comply with EIC - Records Retention Requirement: - ANSWER-MUST:
