Form 8867 2022 Printable, Fillable PDF – In order to receive payment for their services, tax return preparers are expected to exhibit reasonable care in preparing any client’s return or claim for refund. Beginning in 2016, the Earned Income Credit (EIC) due diligence and recordkeeping requirements for paid tax return preparers were increased to include the Child Tax Credit and Additional Child Tax Credit (CTC/ACTC) as well as the American Opportunity Tax Credit (AOTC). To claim the EIC, CTC/ACTC, and/or AOTC, you must complete Form 8867, Paid Preparer’s Due Diligence Checklist, together with your tax return.
The Preparer Is Required To Do Due Diligence As Part Of The Process
- Interviewing the customer
- Ask for proper follow-up inquiries.
- They should have access to suitable and adequate information in order to establish proper reporting of income, the claiming of tax advantages (such as deductions and credits), and compliance with tax laws.
As part of the due diligence process, the preparer may need to ask further questions and gather additional information in order to assess eligibility for, and the amount of, the EIC, CTC/ACTC, or AOTC, as well as the amount of the AOTC. Failure to comply with the due diligence obligations of the EIC, CTC/ACTC, or AOTC might result in a penalty for each failure to comply.
If the preparer does all of the following, they will have met the due diligence standards set out in Treasury Regulations for the EIC, the CTC/ACTC, or the AOTC claim on a return or claim for refund:
Fill out Form 8867 completely and precisely, and follow the instructions on the form for each credit claimed for which a person is being compensated as a tax return preparer, as indicated on the form.
Fill Out And Submit Form 8867 In The Manner Specified
Meet the knowledge requirement by interviewing the taxpayer and asking the client enough questions to determine whether the taxpayer is eligible to claim the credit(s) and, if so, how much the taxpayer is eligible to claim (s).At the same time, the preparer should take notes during the interview to capture the questions asked and the replies given by the taxpayer. (SeeForm 8867-Paid Preparer Knowledge Requirement and Documenting Taxpayer Responses for more information.) Also see
All five (5) of the records listed below should be kept for three (3) years from the latest of either when the return was due (excluding extensions) or when it was actually filed:
- Form 8867, duplicate;
- The corresponding worksheet(s) or your own worksheet(s) should be used for any credits claimed.
- You must give copies of any papers supplied by the taxpayer on which you rely to assess eligibility for, and the amount of, any tax credits.
- Maintaining a record of the information that was utilized to construct Form 8867and worksheet (s), as well as when, where, and from whom it was received;
- A record of any extra questions you may have asked the taxpayer to assess eligibility for and the amount of the credits, as well as the taxpayer’s responses to those additional questions.
- It is possible to get a copy of the Form 8867 in TaxSlayer Pro if one of the following credits is claimed on the return: EIC, CTC/ACTC, or AOTC. It will then be possible to pick Preparer Due Diligence from the main menu of the tax return, which will be displayed on the left-hand side of the screen.
- Important: This is a tutorial on how to complete Form 8867 in the TaxSlayer Pro software. This is not meant to be professional tax advice.