Question

To which of the following tax returns claiming the earned income credit must irs form 8867 be attached?

a. only to tax returns claiming a qualifying child
b. only to tax returns claiming an earned income credit exceeding $1,000
c. only to tax returns claiming an earned income credit that is filed electronically
d. to all tax returns claiming an earned income credit

Answer 1

IRS Form 8867 must be attached to all tax returns claiming the Earned Income Tax Credit, as it ensures tax preparers perform due diligence on EITC claims. d. to all tax returns claiming an earned income credit:

Step-by-step explanation:

To all tax returns claiming an earned income credit:

The IRS Form 8867, Paid Preparer's Earned Income Credit Checklist, must be completed and attached to any tax return claiming the Earned Income Tax Credit (EITC). This form is a due diligence checklist that tax preparers must use to ensure that the claim for the EITC is valid.

The requirement to attach Form 8867 applies regardless of whether a qualifying child is claimed, the amount of credit exceeds a certain threshold, or if the tax return is filed electronically. The purpose of this form is to ensure that taxpayers receive the credit to which they are entitled, but also to prevent improper or fraudulent claims, which can result in penalties for both the taxpayer and the preparer. It is an essential step in the filing process for those eligible for the EITC, which is a significant assistance program for low-income workers, aiming to make employment more financially rewarding.