Get IRS 8867 2016

If you were paid to prepare a return for any taxpayer claiming the EIC, the CTC/ACTC/ODC, the AOTC, and/or HOH filing status, you must complete Form 8867 and meet the other due diligence requirements described later in Purpose of Form. Form 8867 must be filed with the return.

Two Forms 8867 must be completed, one prepared by A for the EIC, and one prepared by B for the AOTC. The Form 8867 completed by A as a nonsigning preparer must be provided to B to be filed along with T's return. The Form 8867 completed by B as the signing preparer should also be filed with T's return.

The EITC due diligence regulations require a paid preparer to complete Form 8867, Paid Preparer's Due Diligence Checksheet. The purpose of the form is to ensure that the practitioner has considered all applicable EITC eligibility criteria for each return prepared. See What is Form 8867 for more information.

The Four Due Diligence Requirements. Complete Form 8867, Paid Preparer's Due Diligence Checklist, for each return or claim for refund you preparer that claims EITC, CTC/ACTC/ODC, AOTC and/or HOH filing status.

The ODC is a nonrefundable credit of up to $500 for each eligible dependent who cannot be claimed for the child tax credit. The ODC and CTC are both figured using the Child Tax Credit and Credit for Other Dependents Worksheet and reported on Form 1040, line 12a, or Form 1040NR, line 49.

Due diligence is an investigation or audit of a potential investment or product to confirm all facts, that might include the review of financial records. Due diligence refers to the research done before entering into an agreement or a financial transaction with another party.

Due diligence, in the context of tax return preparation, is the diligence or care that a reasonable preparer would use under the same circumstances. It is an objective standard. ... The Code and regulations provide for enhanced due diligence requirements with respect to claims for the earned income tax credit.