Question

choose the response that accurately completes the last sentence. lila is your best friend's 19-year-old daughter. lila has a two-year-old child. you know that lila lived at home and was a full-time student until she quit college at the end of september during the tax year. your friend (lila's mom) gives you lila's tax documents and tells you to let lila claim herself and claim her child for the earned income credit (eic). to meet the eic due diligence knowledge requirement, you:

Answer 1

To meet the EIC due diligence knowledge requirement, you B. Explain to Lila that she needs to provide you with documentation of her earned income for the past year, including W-2s or tax forms from self-employment.

What should you do?

Explaining the need for income documentation is the most accurate and responsible way to meet the EIC due diligence knowledge requirement in this scenario.

The reason is that verifying earned income is important for accurate tax filing and protecting both Lila and yourself from potential issues. This should be done while noting that tax laws and regulations can be complex.