3596: Paid Preparer’s California Earned Income Tax Credit Checklist (2025)
California · FTB · Used for tax years 2025
Form FTB 3596 is a paid preparer’s due diligence checklist for the California Earned Income Tax Credit. It records the preparer’s information, eligibility checks, recordkeeping compliance, and certification that the answers are true, correct, and complete.
Who files this form
Form FTB 3596 is the paid preparer’s due diligence checklist for a taxpayer claiming the California Earned Income Tax Credit (EITC).
For tax year 2025, attach the checklist to the taxpayer’s original or amended California Form 540, 540 2EZ, or 540NR.
What you'll need
The preparer must complete Form FTB 3514 using current information provided by the taxpayer or reasonably obtained by the preparer. The preparer must also complete the California EITC worksheet in the FTB 3514 instructions, or a worksheet providing the same information.
Keep these five types of records:
- A copy of Form FTB 3596.
- The EITC worksheet or equivalent worksheet.
- Copies of taxpayer documents relied on to determine eligibility and calculate the credit.
- A record of how, when, and from whom the information used for the form and worksheets was obtained.
- A record of additional information relied on, including questions asked and the taxpayer’s answers.
The form requires keeping these records for four years from the latest of the dates specified in the instructions under “Document Retention.” Those instructions are not included in the supplied text.
The checklist also asks for the taxpayer’s name and SSN or ITIN, plus the preparer’s name, PTIN, and license, registration, or enrollment details.
How to file
Attach Form FTB 3596 to the taxpayer’s original or amended California Form 540, 540 2EZ, or 540NR.
Complete the due diligence requirements in Part I, the eligibility questions in Part II, and the credit eligibility certification in Part III. Question 10 asks the preparer to certify that all answers are true, correct, and complete to the best of their knowledge.
The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Not documenting the interview as it happens. The form requires the preparer to ask adequate questions and record the taxpayer’s responses at the time of the interview.
- Leaving questionable information unresolved. If information appears incorrect, incomplete, or inconsistent, the checklist asks whether the preparer made reasonable inquiries and documented them at the time.
- Missing required records. Keep all five record types listed in Part III, not just the completed checklist.
- Assuming year-round support answers the child residency question. The checklist asks whether the child lived with the taxpayer for over half the year, even if the taxpayer supported the child all year.
The form warns that failure to comply with all EITC due diligence requirements may result in a $500 penalty for each failure.
Questions people ask
Does this checklist apply to amended returns?
Yes. The form says to attach it to an original or amended California Form 540, 540 2EZ, or 540NR.
What if the taxpayer has no qualifying child?
Question 9a asks the preparer to determine whether the taxpayer is eligible for the EITC without a qualifying child. If the taxpayer is claiming the EITC without a qualifying child, skip questions 9b and 9c and go to Part III.
What if more than one person could claim the same child?
Question 9c asks whether the preparer explained the EITC tiebreaker rules for a child who is the qualifying child of more than one person.
What must the preparer ask about audit documentation?
Question 7 asks whether the preparer asked the taxpayer if they could provide documentation supporting eligibility for the EITC and the amount claimed if the return is selected for audit.