A tax preparer who assists an individual in claiming the Oregon Working Family Household and Dependent Care Credit (WFHDC) has certain enhanced due diligence responsibilities. Which of the following is one such responsibility? The preparer must: Complete Form OR-PS, Care Provider Statement. Examine prior-year returns to verify that the amounts claimed are consistent with the client's "usual and reasonable" needs. Inform the taxpayer of the penalty for falsely claiming the WFHDC credit. Interview the care provider to verify the dates of care.
Added by Micheal B.
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Which of the following is NOT TRUE about the due diligence requirements? The tax preparer must submit Form 8867 with the return, with entries for the following credits claimed on the return: EITC, CTC/ODC/ACTC, and AOTC. The tax preparer must always obtain documentation to prove the relationship and residency of a qualifying child before completing a claim for the EITC, CTC/ODC/ACTC, and AOTC. The tax preparer must keep a copy of any documents provided by the taxpayer upon which the tax preparer relied to determine eligibility for, or the amount of, the EITC, CTC/ODC/ACTC, and AOTC. The tax preparer must make additional inquiries if the taxpayer's responses appear incorrect, inconsistent, or incomplete. They also need to record any questions asked and the taxpayer's answers provided.
Akash M.
It is not enough to ask more questions; tax preparers must also: Audit the return. Ask clients for two references to verify the information. Perform employment verification checks on all EIC clients. Contemporaneously document the questions asked and the client's responses.
When is a tax preparer required to complete and submit Form 8867, Paid Preparer's Due Diligence Checklist? Only with amended returns that claim the Earned Income Credit (EIC), American Opportunity Tax Credit (AOTC), Child Tax Credit (CTC)/Additional Child Tax Credit (ACTC)/Other Dependent Credit (ODC), and head of household (HOH) filing status. Only with original returns that claim the EIC, AOTC, CTC/ACTC/ODC, and the HOH filing status. This excludes amended returns. Only if the taxpayer's information provided appears to be incorrect, inconsistent, and incomplete. With every original and amended return that claims the EIC, AOTC, CTC/ACTC/ODC, and the HOH filing status.
James K.
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Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
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