The due diligence regulations require a paid preparer to complete Form 8867, Paid Preparer's Due Diligence Checklist. The purpose of the form is to ensure that the practitioner has considered all applicable eligibility criteria for certain tax credits for each return prepared, such as the earned income tax credit (EITC), child tax credit (CTC), additional child tax credit (ACTC), credit for other dependents (ODC), American opportunity credit (AOTC) and/or the head of household (HOH) filing status. See What is Form 8867 for more information.
More Tools and Tips
- Review our tips on preventing the most common processing errors.
- See examples about Handling Most Common Due Diligence Situations.
- Avoid the three most common errors. See our Handling the Most Common Errors
- What is Form 8867?
- Forms 886-H can assist you in tackling the difficult and probing questions
- Due Diligence on the go! Publication 4687PDF, Paid Preparer Due Diligence, is a guide to help you comply with your due diligence requirements. Also, available in Spanish, Publication 4687 SPPDF.
- Your clients can find out if they are eligible for the EITC by answering some questions and providing basic income information using the EITC Assistant on irs.gov.