Paid Tax Preparers Will Need to Certify Client Eligibility

Next tax season will have tax professionals filling in some new due diligence measures, courtesy of Congress. Legislation expands the EITC due diligence requirements to include two other refundable credits – the Child Tax Credit or Additional Child Tax Credit, and the American Opportunity Tax Credit.

Completion and submission of Form 8867, Paid Preparer’s Due Diligence Checklist, is one of four requirements. Form 8867 requires paid tax preparers certify they have confirmed their clients’ eligibility for each of the credits – EITC, CTC/ACTC and AOTC. The 8867 form has been modified to include the additional credits.

The amended Form 8867 and its instructions are available for public comment. The Internal Revenue Service will offer a free training course about the changes to help preparers meet the due diligence requirements.