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Category: Information From the IRS

Legislation Expands Paid Preparer Due Diligence Requirements

Effective for tax year 2016, Congress expanded the EITC due diligence requirements to include two additional refundable credits – the Child Tax Credit/Additional Child Tax Credit and the American Opportunity Tax Credit.

One of four due diligence requirements is completion and submission of Form 8867, Paid Preparer’s Due Diligence Checklist. Form 8867 requires paid tax preparers certify they have confirmed their clients’ eligibility for each of the credits – EITC, CTC/ACTC and AOTC.  The draft Form 8867 and Instructions, which are now available for public comment, have been modified to include these credits.

Tax preparers can take a free IRS training course about these changes to help them meet their refundable credits due diligence requirements, and earn one continuing education credit. This training course can be found at EITC Central.


Additional Resources


Instructions for Form 8867 - Paid Preparer's Due Diligence Checklist

Paid Preparer Due Diligence Training Module


Form 8867 - Paid Preparer's Due Diligence Checklist


Form 8867 - Paid Preparer Knowledge Requirements and Documenting Taxpayer Responses

 



Last Updated: 1/16/2017


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