Form 8967 Now Obsolete – Trick or Treat?

We recently wrote a blog to introduce the new Form 8967, Paid Preparer’s Child Tax Credit Checklist.  Much to our surprise, the IRS announced today that the form is now obsolete.  Huh?  That quick?  Our first thought was, “Halloween prank maybe?”  But it appears this is no trick.  Sources at the IRS have confirmed that Form 8967 has been made obsolete and removed from IRS.gov as a result of a recent policy decision.  Poof!  It’s gone.

The form was to serve as an optional due diligence checklist for paid preparers, helping them determine eligibility for the child tax credit.  It was an exhaustive, 21-question (per child) checklist spanning three pages and covering all eligibility factors – residency, relationship, support, citizenship, adoption, ID verification, and physical presence.

The introduction of more “due diligence” questions was not a surprise.  The IRS has been aggressive in its release of due diligence materials (see our Taxing Subjects post last year).  Recent due diligence documentation has included: the expansion of the EIC checklist, Form 8867, to four pages; the addition of a page 2 to Form 8863, which included more fact-checking questions to validate claims for education credits; and the addition of more questions on page 1 of Form 8812, Child Tax Credit.

It is unclear why this recently released form was suddenly retired, but for those of you who were rolling your eyes at yet another due diligence form, consider this latest news your Halloween treat!

If the form is resurrected, we will let you know.