Catherine's EITC was denied due to reckless disregard of the rules. For which tax years can she not claim the EITC?

Catherine's denial of the Earned Income Tax Credit (EITC) due to reckless disregard of the rules has significant implications for her ability to claim the credit in subsequent tax years. When a taxpayer's claim for the EITC is denied under this scenario, they are generally barred from claiming the credit for the current tax year in which the denial occurred and also for any following two tax years.

In this case, if the denial occurred for the 2023 tax year, then Catherine cannot claim the EITC for 2023. Additionally, she is also prohibited from claiming the EITC in 2024 due to the nature of the violation. Therefore, she would not be eligible to claim the EITC for either 2023 or 2024, making the correct answer that she cannot claim the EITC for both of those years.

This rule ensures that taxpayers who have exhibited reckless disregard for the rules are temporarily restricted from benefiting from the EITC, allowing the IRS to maintain the integrity of the program and encourage compliance with tax obligations.