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DUE DILIGENCE FORM FOR ENTITIESBefore completing this form, please refer to Appendix A heretoSECTION 1: FORMATION DETAILSREGISTERED NAME OF ENTITY:TRADING NAME:TYPE OF ENTITY:JURISDICTION OF FORMATION:REGISTRATION.

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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 ...

The four tests are: tax return preparation, review, and filing; completion of Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents; submission of all worksheets used to calculate any of these four credits; and completion and submission of Form 8867, Paid Preparer's Due Diligence Checklist.

IRS Form 8887 will be used as documentation of TAA/TRA eligibility by individuals who claim the tax credit. Listing of Individuals for IRS Purposes.

Form 8867 covers the EIC, the CTC/ACTC/ODC, the AOTC, and/or HOH filing status. You should check the boxes corresponding to all benefits that you determined the taxpayer's eligibility for that are actually claimed on the return. Only paid tax return preparers should complete this form.

Due diligence, IRC §6695(g), requires paid tax return preparers to make additional inquiries of taxpayers who appear to be making inconsistent, incorrect or incomplete claims related to their self-employment when the tax return includes the earned income tax credit.

The due diligence requirement on Form 8867, Paid Preparer's Due Diligence Checklist, for the child tax credit may apply to 2022 tax returns claiming qualifying children for the child tax credit even if the return claims no child tax credit after reconciling advance child tax credit payments made in 2022.

A due diligence check involves careful investigation of the economic, legal, fiscal and financial circumstances of a business or individual. This covers aspects such as sales figures, shareholder structure and possible links with forms of economic crime such as corruption and tax evasion.

In simple words, Due Diligence means doing your homework and acquisitions of required knowledge before entering into any agreement or contract with another company.

About Form 8867, Paid Preparer's Due Diligence Checklist | Internal Revenue Service.

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.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232