I just came back from a pre-tax court conference with the IRS on behalf of a pro-bono client for the county bar assn.
I got her a "no-change" on her 1999 tax return (we won). The issue was qualifying for earned income credit. HH, and dependecy of 3 kids. The IRS employee looked mainly at the qualifications for dependency of the 3 children of this single mom. Two of the kids received minimal social security due to a deceased father.
The taxpayer worked for wages about 8 mos during the year in question but made about $12,000. I was able to show that she provided support for the children, and paid over half the cost of keeping up the home.
Had thetax return which was prepared by a small local preparer in another state been covered by a peace-of-mind type guarantee I wouldn't have had to go to tax court for her.
Because she was denied in 1999, her 2000 EIC was automatically denied. Now all will be restored.