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2017

Department of the Treasury

Internal Revenue Service

Instructions for Form 8867

Paid Preparer’s Due Diligence Checklist for the Earned Income Credit (EIC), the

Child Tax Credit (CTC)/Additional Child Tax Credit (ACTC), and/or the American

Opportunity Tax Credit (AOTC)

Section references are to the Internal Revenue Code unless

Multiple Forms 8867 for one return. Form 8867 must be

otherwise noted.

completed by a paid tax return preparer responsible for a taxpayer's

Future Developments

claim of the EIC, the CTC/ACTC, and/or the AOTC; therefore, there

may be multiple Forms 8867 for one return or amended return. If

For the latest information about developments related to Form 8867

there are multiple Forms 8867 for a paper return, attach all Forms

and its instructions, such as legislation enacted after they were

8867 to the return to be submitted to the IRS. If there are multiple

published, go to IRS.gov/Form8867.

Forms 8867 for an e-filed return,

e-file

will now accept transmission

of up to four Forms 8867. All Forms 8867 must be retained as

What’s New

provided in

Document

Retention.

Example. Paid tax return preparer A determined taxpayer T's

Form 8867 revised. Form 8867 has been simplified to allow the

eligibility for, and the amount of, the EIC claimed on T's return. Paid

submission of one form for the EIC, the CTC/ACTC, and/or the

preparer B determined T's eligibility for, and the amount of, the

AOTC.

AOTC claimed on T's return and also signs the return as the signing

Multiple Forms 8867. Multiple Forms 8867 may be submitted

tax return preparer. Two Forms 8867 must be completed, one

electronically for one return. See

Multiple Forms 8867 for one

return,

prepared by A for the EIC, and one prepared by B for the AOTC. The

later.

Form 8867 completed by B as the signing preparer should be filed

with T's return.

Childless EIC. Your client may be able to qualify for the EIC under

the rules for taxpayers without a qualifying child if your client has a

Purpose of Form

qualifying child for the EIC who is claimed as a qualifying child by

another taxpayer. For more information, see Pub. 596.

As a paid tax return preparer, you are required to exercise due

diligence when preparing any client’s return or claim for refund. As

General Instructions

part of exercising due diligence, you must interview the client, ask

adequate questions, and obtain appropriate and sufficient

information to determine the correct reporting of income, claiming of

Form 8867 covers the EIC, the CTC/ACTC, and/or the AOTC. You

tax benefits (such as deductions and credits), and compliance with

should check the boxes corresponding to all credits actually claimed

the tax laws.

on the return that you prepared.

As a paid tax return preparer, you also must meet specific due

Only paid tax return preparers should complete this form. If

diligence requirements set forth in Treasury Regulations when you

you were paid to prepare a return for any taxpayer claiming the EIC,

prepare returns and claims for refund involving the EIC, the CTC/

the CTC/ACTC, and/or the AOTC, you must complete Form 8867

ACTC, and/or the AOTC. To meet these due diligence

and meet the other due diligence requirements described later in

requirements, you may need to ask additional questions and obtain

Purpose of

Form.

additional information to determine eligibility for, and the amount of,

Form 8867 must be filed with the return. Form 8867 must be

the EIC, the CTC/ACTC, and/or the AOTC. Failure to meet the EIC,

filed with the taxpayer’s return or amended return claiming the EIC,

the CTC/ACTC, and/or the AOTC due diligence requirements could

the CTC/ACTC, and/or the AOTC.

result in a $510 penalty for each failure. See section 6695(g) and

Temporary Regulation section 1.6695-2T.

Signing tax return preparers.

If you are the paid tax return preparer signing the return and you

You have complied with the due diligence requirements set

are filing the return electronically, file the completed Form 8867

forth in Treasury Regulations for the EIC, the CTC/ACTC, or

electronically with the return.

the AOTC claimed on a return or claim for refund if you:

If you are the paid tax return preparer signing the return and you

1. Meet the knowledge requirement by interviewing the

are not electronically filing the return, provide the completed Form

taxpayer, asking adequate questions, contemporaneously

8867 to the taxpayer with instructions to file this form with his or her

documenting the questions and the taxpayer’s responses in your

return.

notes, reviewing adequate information to determine if the taxpayer is

If you are the paid tax return preparer signing the return and you

eligible to claim the credit(s) and in what amount(s), and

are mailing the return to the IRS for the taxpayer (which should only

2. Complete Form 8867 truthfully and accurately and complete

be done after the taxpayer has reviewed and signed the paper

the actions described on Form 8867 for each credit claimed for

return), mail the completed Form 8867 to the IRS with the return.

which you are the paid tax return preparer.

Nonsigning tax return preparers. If you are the paid tax return

3. Submit Form 8867 in the manner required.

preparer for any of the credits covered by Form 8867 but you are not

4. Keep all five of the following records for three years from the

required to sign the return as preparer, provide the signing tax return

latest of the dates specified later, in

Document

Retention:

preparer the completed form in either electronic or paper format.

a. A copy of Form 8867,

You can find rules regarding who is a signing tax return preparer

and a nonsigning tax return preparer in Regulation section

b. The applicable worksheet(s) or your own worksheet(s) for

301.7701-15. If you are the only paid tax return preparer for the

any credits claimed (see

Due Diligence

Requirements, later),

taxpayer’s return, you are the signing tax return preparer and must

c. Copies of any documents provided by the taxpayer on which

sign the return as preparer. Failure to sign the return when required

you relied to determine eligibility for, and the amount of, the credit(s),

may subject you to a penalty.

d. A record of how, when, and from whom the information used

to prepare Form 8867 and worksheet(s) was obtained, and

Dec 05, 2017

Cat. No. 59407V

Instructions For Form 8867 - Paid Preparer'S Due Diligence Checklist For The Earned Income Credit (Eic), The Child Tax Credit (Ctc)/additional Child Tax Credit (Actc), And/or The American Opportunity Tax Credit (Aotc) - 2017

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