Paid tax return preparers must meet specific due diligence requirements when preparing returns or claims for refund claiming the:
- Earned income tax credit (EITC),
- Child tax credit (CTC), additional child tax credit (ACTC), credit for other dependents (ODC),
- American opportunity tax credit (AOTC) or
- Head of household (HOH) filing status.
This section helps you understand due diligence requirements and resources.
Due Diligence Topics
- Due Diligence Law
- What is Form 8867?
- Due Diligence Requirements for Knowledge and Record-Keeping
- Consequences of Not Meeting Due Diligence Requirements
Free Programs and Resources
- Due Diligence Training Module - this interactive course, available in both English and Spanish, helps paid tax return preparers learn about due diligence requirements when preparing returns claiming the EITC, CTC, ACTC, ODC, AOTC and HOH filing status. It can be completed at any time for free and you may qualify to earn one continuing education credit.
- Nationwide Tax Forum Videos - the videos focus on due diligence requirements for refundable credits and head of household filing status, and the due diligence examination process.
- Due Diligence Videos - these short due diligence videos give examples of interview techniques for various situations.
- Publication 4687, Paid Preparer Due Diligence (also available in Spanish) - this publication provides valuable guidance to help you comply with the due diligence requirements.
- Forms 886 - these forms can help you and your client understand the documents that can help prove a claim for the EITC, CTC, ACTC, ODC, AOTC or HOH filing status.
- Common due diligence situations - this page provides useful examples on how a preparer can handle common situations with clients.
- Handling the most common EITC errors - this page provides information about how a preparer can avoid common EITC errors.