Question

Exercising due diligence is a requirement for paid preparers when preparing a taxpayer's return claiming the Earned Income Credit, the Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents, the American Opportunity Tax Credit, and Head of Household (HOH) Filing Status. All of the following are due diligence requirements EXCEPT __________. Completion of eligibility checklist. Knowledge. Record retention. Verification of employment.

Answer 1

Inorder to claim EIC paid preparer should fill Form 8867, which is due diligence requirement.

It requires the details as to the

1. knowledge of the assessee,
2. Retention of the records based on which credit is claimed,
3. Whether the taxpayer is self employed,

Therefore the due diligence requirements doesn't include completion of eligibility criteria.