Grace is your best friend's 20-year-old daughter. Grace has a one-year-old child. You know that Grace lived at home and was a full-time student until she quit college at the end of September of the tax year. Your friend (Grace's mom) gives you Grace's tax documents and tells you to let Grace claim herself and claim her child for EITC. To meet the EITC due diligence knowledge requirement, you:

Cannot ignore the facts about Grace living with her mother for nine months of the year when she was a full-time student.

Can disregard information obtained through a personal relationship.

Cannot complete Grace's return under any circumstances.

Can complete Grace's return filing her as a single nondependent, with EITC for her child.