Preparer Due Diligence

Preparers who are paid to complete returns claiming the earned income tax credit (EITC), the child tax credit (CTC) refundable portion of the CTC, the additional child tax credit (ACTC), credit for other dependents (ODC), American opportunity tax credit (AOTC) and head of household (HOH) filing status must meet due diligence requirements. This section helps you understand the ins and outs of meeting your due diligence requirements and describes IRS's programs and resources to help you.

Due Diligence Topics

 

Additional Programs and Resource

  • Due Diligence Training Module - this interactive training module, available in both English and Spanish, helps you learn your due diligence requirements when preparing returns claiming the EITC, the CTC/ACTC and the AOTC. In early 2019 the training will update to include HOH filing status. The new ODC is a part of the child tax credit, so it's also subject to due diligence requirements and will be included in the training. There's no cost to you and you may qualify for one CE, Continuing Education credit.

 

  • Due Diligence Videos - the popular due diligence videos from the IRS Nationwide Tax Forums give examples of interview techniques for those prickly due diligence situations.

 

 

 

  • Forms 886 help you and your client understand what documents the IRS may need to prove their claim for the  EITC, the CTC, the AOTC or HOH filing status.

 

  • IRS Publication 4687, Refundable Credit Due Diligence, available in both English and Spanish, provides valuable guidance to help you comply with your  due diligence requirements.