Get Form 8867 2023-2024

The Four Due Diligence Requirements Complete and Submit Form 8867. (Treas. Reg. section 1.6695-2(b)(1)) ... Compute the Credits. (Treas. Reg. section 1.6695-2(b)(2)) ... Knowledge. (Treas. Reg. section 1.6695-2(b)(3)) ... Keep Records for Three Years.

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 ...

This checklist is a comprehensive tool to use when preparing Form 8867, Paid Preparer's Due Diligence Checklist, that is associated with claiming the earned income tax credit, American opportunity tax credit, child tax credit (including the additional child tax credit), the credit for other dependents and head-of- ...

Four Requirements for Due Diligence Complete Form 8867, Paid Preparer's Due Diligence Checklist, and submit it with the return. Make sure any claimed benefit is based on facts. Ask the taxpayer the right questions. Keep records for three years.

Complete and submit Form 8867 (Paid Preparer Due Diligence Checklist) for each return that the tax preparer prepares that includes one of the covered credits and/or the head of household filing status.

The due diligence penalty is $545 (in 2022) for each failure on a tax return. These penalties are imposed for failure to comply with the due diligence requirements. The due diligence requirements are documented on Form 8867, Paid Preparer's Due Diligence Checklist.

For 2020 returns, the penalty is $540 for each credit and/or HOH filing status on the missing form. For example, on return missing Form 8867 claiming EITC, CTC, AOTC with the HOH filing status could result in a $2,160 penalty."

Make reasonable inquiries if a reasonable and well-informed tax return preparer knowledgeable in the law would conclude that the information furnished to the preparer appears to be incorrect, inconsistent, or incomplete. At the time of the client interview, make a record of the inquiries made and the client's answers.