Question 213

Catherine claimed the Earned Income Tax Credit (EITC) on her 2019 tax return, which she filed in March 2020. The IRS determined she was not entitled to the EITC and that her error was due to reckless or intentional disregard of the EIC rules. In September 2020, Catherine received a statutory notice of deficiency telling her an adjustment would be made and tax assessed unless she filed a petition with the Tax Court within 90 days. Catherine did not act on this notice within 90 days. Therefore, her EITC was denied in December 2020, and she cannot claim the EITC for which of the following tax years?

A. Only 2020 B. Only 2021 C. 2020 or 2021 D. 2021 or 2022