The IRS can penalize a paid tax preparer who fails to comply with the due diligence requirements when the return claims the Earned Income Tax Credit, the Child Tax Credit/Additional Child Tax Credit/Other Dependent Credit, the American Opportunity Tax Credit, and/or the head of household filing status. For 2019, the penalty can be as much as:

1. $2,120 per return.

2. $1,590 per return.

3. $530 per return.

4. Zero, although penalties may be assessed against the taxpayer.