Question 8 of 18.

All of the following are requirements for a Tax Professional to meet the due diligence knowledge requirement for EITC, HOH, AOTC, and CTC/ACTC/ODC EXCEPT:

Requiring the taxpayer to provide all documentation to substantiate taxpayer eligibility prior to the taxpayer claiming the credit.

Not knowing or having reason to know that any information used in determining the taxpayer's eligibility for, or the amount of, the credit is incorrect.

Contemporaneously documenting the additional inquiries made and the client's responses to inquiries.

Not ignoring the implications of information furnished to or known by the preparer.

Mark for follow up

Question 9 of 18.

Question 15 of Form 8867 is important because:

The Tax Professional certifies that all the information entered on Form 8867 is, to the best of their knowledge, true, complete, and correct.

It determines if an active Form 8332 or similar statement is in place and if applicable, attached to the taxpayer's return.

It determines if the taxpayer provided substantiation for qualified tuition and related expenses to claim AOTC.

It determines if the Tax Professional asked adequate questions to prepare a complete and correct Form 1040, Schedule C.

Mark for follow up

Question 10 of 18.

On his 2018 tax return, Tony wishes to claim the ACTC by claiming his nephew, Sam, as a qualifying dependent. Sam has an ITIN. Tony brings in Sams middle school records showing that Sams address is Tonys address. Tony also brings records showing that Sam is his brothers son to prove their relationship. Which of the following is true?

Tony can claim Sam for ACTC because he has documentation showing Sam lived at his address.

Additional due diligence questions should be asked about Sams parents before allowing Tony to claim Sam for ACTC.

Tony can claim Sam for ACTC because he has documentation proving their relationship.

Tony cannot claim Sam for ACTC because dependents with an ITIN are not eligible for ACTC beginning in Tax Year 2018