Tax IQ Academy https://validator.w3.org/feed/docs/rss2.html White Label Tax Course Site Tax IQ Academy White Label IRS Approved Instructor White Label Reseller 100 Students White Label Reseller 250 Students White Label Reseller 50 Students White Label Reseller 25 Students AFSP White Label 100 AFSP Bundles 50 AFSP Bundles EA/AFSP BUNDLES Live Webinar Trainings Checkout Corporation Taxation Mastery (Course & eBook) My account 2026 Annual Federal Tax Refresher (AFTR) Self-Study Courses Checkout Cart AFSP 18-Hour CE Bundle- Beginner’s Blueprint w/ AFTR 25 AFSP Bundles 10 AFSP Bundles Can You Defend Your Return? Paid Preparer Due Diligence Mastery Unit 7: Firm-Level Liability and Office Compliance Unit 6: American Opportunity Tax Credit Due Diligence Unit 5: Income Verification and Schedule C Due Diligence Unit 4: Head of Household Due Diligence Unit 3: Qualifying Child and Dependent Rules Unit 2: The Four Due Diligence Requirements Unit 2: The Four Due Diligence Requirements AFSP 18-Hour Tax Return Defense Bundle w/ AFTR Ethics, Penalties, and Professional Responsibility for Tax Practitioners (Course & eBook) IRS Audit Defense: Protecting Clients Before, During, and After an IRS Examination From 1040 to Refund: Beginner’s Guide 2026 (Course & eBook) 1 Hour – From 1040 to Refund: A Beginner’s Guide Mini Course New Tax Professional Management Office (TPMO)  Consequences for the client What Changed for Tax Year 2026 Learning Objectives & Course Description 1040 Tax Credit Blueprint (Course and eBook) California Tax Law – 5 hours (Course & eBook) 2026 Federal Tax Law Updates (Course & eBook) Final Exam 10. A client’s head of household claim is legitimate but thinly documented. The preparer wants to walk the client through exactly what the IRS would request if the filing status were examined for tax year 2026, so the client knows what records to keep. The preparer wants the IRS’s own audit documentation form for filing status. The client’s return will claim head of household and the EITC. Which form serves this purpose for filing status? 9. A preparer has every client sign a printed interview record. A client’s signed record states that her nephew lived with her all year. The same client’s file shows a Form 886-H-EIC discussion in which she mentioned the nephew moved in during June. The preparer noticed the conflict, asked nothing, and prepared the return claiming the nephew for the EITC. The IRS examines the return and disallows the credit. The preparer points to the signed interview record as a defense. Does the signed record protect the preparer from the Section 6695(g) penalty? Tax IQ Academy 8. In November, a firm receives an IRS educational letter stating that a high percentage of its EITC returns show questionable Schedule C income patterns and that its filings will be monitored in the coming season. No penalty is proposed in the letter. The firm’s owner asks what to do with it. What is the appropriate response? 7. A firm owner hires six seasonal preparers, gives them software logins, and provides no due diligence training, no written procedures, and no file review. One preparer fails the knowledge requirement on 15 EITC returns filed in calendar year 2027. Management did not know about the specific returns. • The preparer’s individual penalty exposure is $665 times 15, or $9,975. • The IRS also proposes penalties against the firm. Is the firm itself liable under Reg. Section 1.6695-2(c)? 6. Jenna, a fifth year student, wants her own return prepared for tax year 2026. She informs the preparer: • Her parents claimed the AOTC for her as their dependent for tax years 2022, 2023, 2024, and 2025. • No one can claim Jenna as a dependent for 2026. • She is enrolled more than half time in her degree program, has an SSN, has a Form 1098-T showing the institution’s EIN, and paid qualified expenses. • Her MAGI is $28,000. Can Jenna claim the AOTC on her 2026 return? 5. Alicia operates a genuine cleaning business. She provides the preparer with well organized records showing $19,000 of gross receipts and $3,200 of substantiated supplies and mileage expenses. She then asks the preparer to leave the expenses off Schedule C because a higher net profit produces a larger EITC. • The expense records are complete and clearly allowable. • Alicia says other preparers have done this for her before. How must the preparer respond? Blog