IRS Increases EIC Due Diligence Requirements on 2012 Form 8867
Susan Patterson - November 29, 2012 3:40 pm
2012 Form 8867, Paid Preparer’s Earned Income Credit Checklist, has been released by the IRS. This revised form requires additional inquiry by the tax preparer for taxpayers claiming the Earned Income Credit and documentation of their responses. An additional question requiring documentation includes: If any qualifying child was not the taxpayer’s son or daughter, did you ask why the parents were not claiming the child and document the answer? Also, an entire page of 2012 Form 8867 is dedicated to specifying which documents the tax preparer relied upon to determine EIC eligibility. The form closes by reminding preparers of the $500 penalty for each failure to comply with the due diligence requirements.