Per the IRS Due Diligence Law webpage:
Under the Internal Revenue Code, a penalty can be assessed against a paid tax return preparer for not meeting due diligence requirements when preparing a return or claim for refund claiming the:
In the TaxAct program, a Red Alert will appear in the Review section of the program if Form 8867 needs to be completed. It is the responsibility of the preparer to be sure all questions on Form 8867 are answered accurately. The TaxAct program allows you to select Yes, No, or N/A for all of the questions, but there are some questions where you should not choose N/A, even though the TaxAct program allows you to. Below is a list of how these questions must be answered.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.