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IRS Increases EIC Due Diligence Requirements on 2012 Form 8867

Susan Patterson - November 29, 2012 5:40 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.

Click here for the 2012 Form 8867


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Victor Pifferrer It is there any form sing by the customer to declare that all the anwsers are true ? And to keep in file to protect tax preparer

Susan Patterson The taxpayer is not required to sign Form 8867; however, the tax preparer can request that the taxpayer sign a copy of Form 8867 or the preparer can draft an internal form that requests the information needed for Form 8867 and require the taxpayer to sign that form.

Karen Collins I don't think it will add much preparation time. Just ask the questions conversationally. The key thing is to write down the answers.

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