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Category: Information From the IRS

Legislation Expands Paid Preparer Due Diligence Requirements

Effective starting with the 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.  

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: 6/29/2018

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