Failure to meet the due diligence requirements when determining eligibility for the Child Tax Credit, Earned Income Tax Credit, American Opportunity Tax Credit, and head of household filing status could result in a penalty of:

$50, per return, assessed towards the taxpayer.

$500, per return, assessed towards the tax preparer.

$520, per return, assessed towards the taxpayer.

$530, for each item on each return, assessed towards the tax preparer.