Respuesta :
Answer:
A preparer should complete a client checklist Form 8867, "Paid Preparer's Due Diligence Checklist," for a client claiming a refundable tax credit when preparing a tax return that claims one or more of the following credits:
1. Earned Income Tax Credit (EITC),
2. Child Tax Credit (CTC) or the refundable portion, the Additional Child Tax Credit (ACTC),
3. American Opportunity Tax Credit (AOTC), and
4. Credit for Other Dependents (ODC).
The IRS requires paid preparers to complete Form 8867 as part of their due diligence requirements to ensure they have adequately reviewed the eligibility of the taxpayer to claim these credits. The form should be completed for each tax year in which the taxpayer claims one or more of the above credits and is meant to help prevent improper claims by ensuring that the preparer has obtained and reviewed the necessary information to determine the taxpayer's eligibility for the credits.
The form is required to be completed and submitted with the tax return if any of these credits are claimed. The due diligence requirements, including the completion of Form 8867, help ensure that the claims for these credits are accurate and substantiated, reducing the incidence of fraudulent or erroneous claims.
Explanation:
