A $500 penalty for each instance of failing to comply with the due diligence requirements for determining eligibility applies to which of the following?
A)Head of Household
B)Hope and Lifetime Learning Credit
C)Child Tax Credit and Earned Income Tax Credit
D)All of the above

Question

Quizplus · Accepted Answer

The $500 penalty for failing to comply with due diligence requirements applies to all of the listed options: Head of Household filing status, Hope and Lifetime Learning Credit, Child Tax Credit, and Earned Income Tax Credit. This is because the IRS imposes due diligence requirements on tax preparers to ensure accurate eligibility determination for these benefits.

A $500 Penalty for Each Instance of Failing to Comply