Can a taxpayer be subject to a two-year ban on claiming the earned income credit (EIC), even though she was entitled to it for two of her three children?

In Chief Counsel Advice, the IRS details that the taxpayer claimed three children for the EIC, but it disallowed the credit for one child because of “reckless or intentional disregard” of EIC rules. In the case, the taxpayer continued to claim the third child in subsequent years even though she knew she wasn’t entitled to claim the child. The IRS determined that the two-year ban applied even though the taxpayer otherwise would have been entitled to the EIC for her other two children. (CCA 201931008)