What is Form 8867?
Form 8867, known as the Paid Preparer's Due Diligence Checklist, is essential for tax preparers. It ensures they follow required steps when assisting clients in claiming specific tax credits, such as the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and American Opportunity Tax Credit (AOTC). This form helps verify the eligibility and accuracy of claims, minimizing errors that could delay refunds or result in penalties. By using this checklist, tax preparers protect both themselves and their clients from potential IRS issues.
What is Form 8867 used for?
Form 8867 is important for tax preparers to follow the rules when helping clients claim tax credits. Here’s what it’s used for:
- Verifying taxpayer eligibility: Checking income, dependents, and residency details.
- Ensuring accuracy: Reviewing records and calculating credit amounts correctly.
- Meeting IRS requirements: Showing compliance for credits like EITC, CTC, ACTC, and AOTC.
- Protecting against errors: Avoiding mistakes that delay refunds or cause penalties.
How to fill out Form 8867?
- 1
Interview the taxpayer: Ask questions to gather necessary information and document their responses.
- 2
Complete Form 8867: Fill out the form accurately based on the information collected.
- 3
Certify accuracy: Review all responses to ensure they are truthful and complete.
- 4
Keep records: Maintain copies of inquiries and documents for 3 years for reference.
Who is required to fill out Form 8867?
Paid tax return preparers are responsible for completing Form 8867, Paid Preparer's Due Diligence Checklist, to ensure they meet due diligence requirements for various tax credits. This form assists in verifying taxpayer eligibility and the accuracy of claimed credits.
The IRS uses the completed form to confirm the accuracy of taxpayer information and the due diligence of the preparer. It must be submitted alongside the taxpayer's return or amended return.
When is Form 8867 not required?
Form 8867 is not required for tax preparers who only work on returns without claims for the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), American Opportunity Tax Credit (AOTC), or Head of Household (HOH) filing status. If a preparer handles returns that do not involve these credits or statuses, they do not need to complete Form 8867.
When is Form 8867 due?
The deadline for Form 8867 is when you file the taxpayer's return or amended return that claims the Earned Income Credit, Child Tax Credit, American Opportunity Tax Credit, or Head of Household status. If these requirements are not met, it may lead to penalties.
How to get a blank Form 8867?
To obtain a blank Form 8867, Paid Preparer's Due Diligence Checklist, simply visit our website. The Internal Revenue Service (IRS) issues this form, and we have it pre-loaded in our editor for you to fill out. Remember, our platform helps with filling and downloading, but not filing forms.
Do you need to sign Form 8867?
You do not need to sign Form 8867 if you are not the signing tax return preparer. However, if you are the paid preparer responsible for assessing the taxpayer's eligibility for credits or Head of Household filing status, you must complete the form and pass it to the signing preparer. Always check the latest updates to ensure compliance with current regulations. For filling out the form, consider using PDF Guru to create, download, and manage your documents.
Where to file Form 8867?
Form 8867 must be submitted alongside the taxpayer's return when claiming credits like the Earned Income Credit or Child Tax Credit.
If filing electronically, include it with the return. For paper filings, give the signed form to the taxpayer to send with their return.
