If a preparer does not complete IRS Form 8867 Paid Preparer's Earned Due Diligence Checklist
prior to completing the return, a Red Alert will appear in the Review section of the program. This appears due to IRS requirements of due diligence on the preparer's part. It is the responsibility of the preparer to be sure all questions on the Form 8867 are answered accurately. Below you will find some helpful tips on completing Form 8867 correctly.
lines that must be answered as Yes
- lines 1-7, 9a, 9b (only if they have a qualifying child), 10a, 10c (if 10a is Yes), 11, and 12
- lines 4a and 4b can be N/A or blank if the answer to 4 is no. They must be yes/no if line 4 is yes (cannot use N/A)
Lines that can be Yes, No
- lines 7a, 8 (can be N/A if there is no Schedule C within the return), 10b
- The questions without n/a on the Form 8867 are credit specific requirements and must be answered per IRS guidelines.
See EITC Due Diligence Law and Regulation for more information.