What is Form 8867?
If you are paid to prepare a return claiming EITC, due diligence regulations require you to complete Form 8867*, Paid Preparer's Earned Income Credit Checklist. Using the Form 8867 ensures you consider all EITC eligibility criteria for each return you prepare. Under the new regulations finalized December 2011, you are now required to:
- Submit the Form 8867 with every electronic return and attach it to all paper returns or claims for refund claiming EITC you file.
- If you prepare a return or claim for refund, but do not submit it directly to the IRS, provide the completed Form 8867 to your client to attach to the return or claim for refund.
You need to answer the questions covering EITC eligibility on the Form 8867 using information from your client. We recommend you ask each question in language your client understands and ask probing questions of your client instead of questions with a yes or no answer. For example, the question, "Is the taxpayer's filing status married filing separately?" Don't let your client tell you his or her filing status. You need to determine your client's filing status and ask the questions that get you to the correct answer. See some of the suggested questions you might ask of a married taxpayer who isn't planning to file a joint return to find out if he or she qualifies for single or head of household in our tips for "Handling the Most Common Errors" page.
*The Form 8867 will change to accommodate the new regulations. This link brings you to the most current version available. Make sure to check if your version is dated 12-2009 or earlier.
There are four parts to the Form 8867
- Part I covers EITC eligibility requirements for all taxpayers
- Part II covers EITC eligibility requirements for taxpayers with a qualifying child
- Part III covers EITC eligibility requirements for taxpayers without a qualifying child
- Part IV covers the paid preparer's due diligence requirements
Additional Due Diligence Topics
Return to Main Due Diligence Page
Last Updated 2/10/2012