If a preparer does not complete IRS Form 8867 Paid Preparer's Earned Income Credit Checklist
prior to completing the return, a number of Red Alerts will appear in the Review section of the program. These appear due to IRS requirements of due diligence on the preparer's part. Most questions in Parts I, II, and III of Form 8867 are automatically answered based on information given on the Earned Income Credit Worksheet
. It is the responsibility of the preparer to be sure all questions on the Form 8867 are covered and answered correctly.
See EITC Due Diligence Law and Regulation
for more information.