Earned Income Credit – Due Diligence
Additional Questions:
Due to new IRS laws and heightened regulations regarding Earned Income Credit (EIC) it is beholden upon me to insure the IRS rules, laws and regulations are properly adhered to with respect to monies received from filing for and obtaining EIC funds.  To better protect you the client as well as the preparer, please complete the questions below.
1)	You have reported either W-2 income from a job or 1099-Misc (business) income.  Do you have any other income that was received?  If Yes, please note source: __________________	Yes	No	

2)	Does the income deposited in bank accounts equal the income claimed on the tax return?
(i.e.:   Did you deposit $10,000 during tax year and report $10,000?)		Yes	No

3)	Do you confirm that the child(ren) claimed for Earned Income Credit are:
a.	Your child(ren) or relative(s)?
b.	Lived with you for more than half of the year?
c.	Supported by you by providing 50% or more of their wellbeing  during the tax year?
d.	Cannot be claimed on any other persons Tax Return?
	Yes	No
4)	Business owners:   Do you have receipts or invoices to prove income and/or expenses related to this business?										Yes	No

5)	Complete only if instructed:
Please note: Your tax return was flagged by our tax software due to Earned Income related warnings as shown on the attached page.  Please initial the attached page to indicate that you have read this warning.  Also, please provide any details relevant to the information referenced.  This information is needed to insure proper due diligence and thoroughness which in turn may limit the potential for further investigation or audit.   

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Taxpayer Name: ______________________  Signature: ____________________________	 Date:  ___/___/2010
Spouse Name: _______________________   Signature: ____________________________	 Date:  ___/___/2010

Preparer Name: ______________________    Signature: ____________________________	 Date:  ___/___/2010