Judy is preparing a client’s return. The client is claiming EIC, CTC/ACTC/ODC, and AOTC. Which of the following best describes the actions Judy must take to substantiate the client’s eligibility for the credits? 

a) Complete Form 8867, Paid Preparer’s Due Diligence Checklist, and submit it to the IRS with the taxpayer’s tax return. 

b) Judy must ask additional questions and document the taxpayer’s answers to those questions and keep copies of any of the taxpayer’s documents that were used to determine the eligibility for the EIC, CTC/ACTC/ODC, and AOTC. 

c) Judy must complete the EIC worksheet, CTC/ACTC/ODC worksheets, and the AOTC worksheet in the Form 1040 Instructions.

Answer rating: 100% (QA)

ANSWER Judy is required to complete Form 8867 the EIC worksheet CTC... View the full answer