Form 8867 Paid Preparers Due Diligence Checklist

Form

8867

Department of the Treasury
Internal Revenue Service

Paid Preparer's Due Diligence Checklist

OMB No. 1545-1629

2016

Earned Income Credit (EIC), Child Tax Credit (CTC), and American Opportunity Tax Credit (AOTC)
▶

To be completed by preparer and filed with Form 1040, 1040A, 1040EZ, 1040NR, 1040SS, or 1040PR.
about Form 8867 and its separate instructions is at www.irs.gov/form8867.

Attachment
Sequence No. 70

▶ Information

Taxpayer identification number

Taxpayer name(s) shown on return
Enter preparer's name and PTIN

Due Diligence Requirements
Please complete the appropriate column for all credits claimed on this return
(check all that apply).
1 Did you complete the return based on information for tax year 2016
provided by the taxpayer or reasonably obtained by you?
. . .

.

.

.

EIC
.

CTC/ACTC

AOTC

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

b Did you document your inquiries? (Documentation should include the
questions you asked, whom you asked, when you asked, the information that
was provided, and the impact the information had on your preparation of the
return.) . . . . . . . . . . . . . . . . . . . . . . . .

Yes

No

Yes

No

Yes

No

5 Did you satisfy the record retention requirement? To meet the record retention
requirement, did you keep a copy of any document(s) provided by the taxpayer
that you relied on to determine eligibility or to compute the amount for the
credit(s)?
. . . . . . . . . . . . . . . . . . . . . . .

Yes

No

Yes

No

Yes

No

6 Did you ask the taxpayer whether he/she could provide documentation to
substantiate eligibility for and the amount of the credit(s) claimed on the return?

Yes

No

Yes

No

Yes

No

7 Did you ask the taxpayer if any of these credits were disallowed or reduced in a
previous year? . . . . . . . . . . . . . . . . . . . . . .
(If credits were disallowed or reduced, go to question 7a; if not, go to question 8.)

Yes

No

Yes

No

Yes

No

.

Yes

No

Yes

No

Yes

No

.

Yes

No

Yes

No

Yes

No

2 Did you complete the applicable EIC and/or CTC/ACTC worksheets found in the
Form 1040, 1040A, 1040EZ, or 1040NR instructions, and/or the AOTC
worksheet found in the Form 8863 instructions, or your own worksheet(s) that
provides the same information, and all related forms and schedules for each
credit claimed?
. . . . . . . . . . . . . . . . . . . . .
3 Did you satisfy the knowledge requirement? Answer “Yes” only if you can
answer “Yes” to both 3a and 3b. To meet the knowledge requirement, did you:
a Interview the taxpayer, ask adequate questions, and document the taxpayer’s
responses to determine that the taxpayer is eligible to claim the credit(s)?
.
b Review adequate information to determine that the taxpayer is eligible to claim
the credit(s) and in what amount? . . . . . . . . . . . . . . .
4 Did any information provided by the taxpayer, a third party, or reasonably known
to you in connection with preparing the return appear to be incorrect,
incomplete, or inconsistent? (If “Yes,” answer questions 4a and 4b. If “No,” go
to question 5.) . . . . . . . . . . . . . . . . . . . . . .
a Did you make reasonable inquiries to determine the correct or complete
information? . . . . . . . . . . . . . . . . . . . . . .

In addition to your notes from the interview with the taxpayer, list those
documents, if any, that you relied on.

a Did you complete the required recertification form(s)?

.

.

.

.

.

.

.

8 If the taxpayer is reporting self-employment income, did you ask adequate
questions to prepare a complete and correct Form 1040, Schedule C? . .
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 26142H

Form

8867 (2016)

Page 2

Form 8867 (2016)

Due Diligence Questions for Returns Claiming EIC (If the return does not claim EIC, go to question 10.)
EIC
9a Did you explain to the taxpayer the rules about claiming the EIC when a child
is the qualifying child of more than one person (tie-breaker rules), and have
you determined that this taxpayer is, in fact, eligible to claim the EIC for the
number of children for whom the EIC is claimed? . . . . . . . . . .

Yes

CTC/ACTC

AOTC

No

b Did you explain to the taxpayer that he/she may not claim the EIC if the
taxpayer has not lived with the child for over half the year, even if the taxpayer
has supported the child? . . . . . . . . . . . . . . . . . .

Yes
No
Due Diligence Questions for Returns Claiming CTC and/or additional CTC (If the return does not claim CTC or Additional CTC,
go to question 11.)
10a Does the child reside with the taxpayer who is claiming the CTC/ACTC? (If
“Yes,” go to question 10c. If “No,” answer question 10b.) . . . . . .

.

Yes

No

b Did you ask if there is an active Form 8332, Release/Revocation of Claim to
Exemption for Child by Custodial Parent, or a similar statement in place and, if
applicable, did you attach it to the return? . . . . . . . . . . . .

Yes

No

c Have you determined that the taxpayer has not released the claim to another
person? . . . . . . . . . . . . . . . . . . . . . . .

Yes

No

Due Diligence Questions for Returns Claiming AOTC (If the return does not claim AOTC, go to Credit Eligibility Certification.)
11 Did the taxpayer provide substantiation such as a Form 1098-T and receipts for
the qualified tuition and related expenses for the claimed AOTC? . . . . .

Yes
have complied with all due diligence requirements with respect to the credits claimed on the return of the
taxpayer identified above if you:

No

▶ You

A. Complete this Form 8867 truthfully and accurately and complete the actions described in this checklist for all credits
claimed;
B. Submit Form 8867 in the manner required;
C. Interview the taxpayer, ask adequate questions, document the taxpayer’s responses on the return or in your notes, review
adequate information to determine if the taxpayer is eligible to claim the credit(s) and in what amount(s); and
D. Keep all five of the following records for 3 years from the latest of the dates specified in the Form 8867 instructions under
Document Retention.
1. A copy of Form 8867,
2. The applicable worksheet(s) or your own worksheet(s) for any credits claimed,
3. Copies of any taxpayer documents you may have relied upon to determine eligibility for and the amount of the credit(s),
4. A record of how, when, and from whom the information used to prepare this form and worksheet(s) was obtained, and
5. A record of any additional questions you may have asked to determine eligibility for and amount of the credits, and the
taxpayer’s answers.
▶ If you have not complied with all due diligence requirements for all credits claimed, you may have to pay a $510
penalty for each credit for which you have failed to comply.
Credit Eligibility Certification
12 Do you certify that all of the answers on this Form 8867 are, to the best of your
knowledge, true, correct and complete? . . . . . . . . . . . . .

Yes
Form

No

8867 (2016)