Earned Income Tax Credit (EITC)

• Taxpayers can no longer file an amended return (1040X) to claim the EITC for any given year a qualifying child did not have a Social Security Number.
• Taxpayers whom the IRS finds committing fraudulently claimed the credit can now be barred from claiming EITC for 10 years.

Child Tax Credit and American Opportunity Education Credit

• These two credits are now subject to the same due diligence requirements as EITC. This is reflected on the revised 2016 Form 8867 (Preparers Due Diligence Checklist). This also means that Form 8867 must be attached to tax returns that are claiming the Child Tax Credit and/or the American Opportunity Credit.
• IRS can bar a taxpayer from claiming the Child Tax Credit and American Opportunity Education Credit for two years if they have determined the individual has intentionally disregarded the rules for claiming either of the two mentioned credits.

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