CAN EARNED INCOME CREDIT BE SUPRESSED?

[ERIC J]

CALCULATING A $7 EIC.  I RATHER NOT TAKE IT AND DO THE CERTIFICATIONS FOR $7.  HOW TO SUPPRESS IT WITHOUT UGLY OVERRIDES?  THANKS!  ERIC 

[Terry53029]

You could check the box on the federal info worksheet, that he is qualifying child for another taxpayer. But I would inform client why you are not claiming the EIC, and maybe discount fee by $7. I would also make note in file

[IRonMaN]

I would round up that discount to $10 😁

[itonewbie]

But if you've done your due d, which you should with all of the returns you prepare regardless of whether certification is required, what's the harm in claiming the EIC.

And if you don't feel that certain information your client provided is up to snuff, shouldn't the focus be on documentation?

Lastly, if you feel that your client may not be honest altogether, it may be time to disengage.

[ERIC J]

EIC just by its nature has been rumored to increase odds of IRS audit.  For a $7 credit that is really my main motivation.  Thanks

[IRonMaN]

An audit for a potential $7 change?  

[itonewbie]

It's not a rumor.  The IRS is targeting returns that may be claiming fraudulent refunds.  For a $7 EIC, I highly doubt your client's return will be targeted for audit (although random audit could still be possible, just like anyone else's return).

[BobKamman]

Are you saying that thousands of tax preparers across the country don't "charge by the form"?  I thought the software even has a feature that will compute the fee that way.  So yes, definitely, charge the $25 for completing the Form 8867, then discount it by $7 when you discard it.  

What do you do when a client has $4 of Section 199A dividends?