Instructions for Filling Out Form 8867

This document offers comprehensive instructions on completing Form 8867, the Paid Preparer's Due Diligence Checklist for various tax credits and Head of Household filing status, as provided by the Internal Revenue Service (IRS).

In this article, we'll provide information on Form 8867 and a step-by-step guide on how to fill it out.

What is Form 8867?

Form 8867 is the Paid Preparer's Due Diligence Checklist for various tax credits, including the Earned Income Credit, American Opportunity Tax Credit, Child Tax Credit (including the Additional Child Tax Credit and Credit for Other Dependents), and Head of Household filing status. This form is required for paid tax return preparers when preparing a return that claims one or more of these credits or the head of household filing status.

The purpose of Form 8867 is to ensure that paid tax return preparers exercise due diligence when preparing a client's return or claim for refund involving these credits and/or filing status, verifying taxpayer eligibility and the correct amount of credit claimed. Failure to meet the due diligence requirements could result in a penalty for each failure.

Who Must File Form 8867?

Form 8867 must be filed by paid tax return preparers who have prepared a return for a taxpayer claiming the Earned Income Credit, Child Tax Credit (including the Additional Child Tax Credit and Credit for Other Dependents), American Opportunity Tax Credit, and/or Head of Household filing status.

The signing tax return preparer is responsible for filing the completed Form 8867 electronically with the return if they are filing electronically, or providing the form to the taxpayer with instructions to file it with their return if not filing electronically. If the paid preparer is not required to sign the return, they must provide the completed form to the signing tax return preparer in either electronic or paper format.

Form 8867 Tax Filing Deadlines and Due Dates

• Form 8867 does not have specific due dates
• Must be filed with the taxpayer's return or amended return claiming the EIC, CTC/ACTC/ODC, AOTC, and/or HOH filing status

Form 8867 Late Payment Penalty

No explicit payment penalty is specifically mentioned, though it is crucial for paid tax return preparers to submit Form 8867 along with the taxpayer's return or amended return claiming the relevant credits and/or Head of Household filing status. Failure to meet the due diligence requirements could result in a penalty for each failure, emphasizing the importance of timely submission.

Step-by-Step Instructions for Form 8867

The step-by-step instructions for filling out Form 8867 are as follows:

1. Enter the taxpayer’s name as it appears on the return and enter the taxpayer identification number (TIN) for the taxpayer (primary TIN, if filing a joint return).
2. Enter the name and preparer tax identification number (PTIN) of the paid tax return preparer who determined the taxpayer's eligibility to claim the EIC, the CTC/ACTC/ODC, the AOTC, and/or HOH filing status for which Form 8867 is being completed and to figure the amount(s) of any credit(s) claimed, even if the preparer is not the tax return preparer signing the tax return.
3. Complete questions 1–8 for all benefits for which you were the paid tax preparer determining the taxpayer's eligibility or the amount of the credit.
4. Complete Part I—Due Diligence Requirements.
5. Complete Part II—Due Diligence Questions for Returns Claiming EIC if applicable.
6. Complete Part III—Due Diligence Questions for Returns Claiming CTC/ACTC/ODC if applicable.
7. Complete Part IV—Due Diligence Questions for Returns Claiming AOTC if applicable.
8. Complete Part V—Due Diligence Questions for Claiming HOH if applicable.
9. Complete Part VI—Eligibility Certification.
10. Keep all required records for 3 years from the latest of the specified dates.

How to Submit Form 8867

To submit Form 8867, complete the form truthfully and accurately, ensuring all eligibility requirements for the credits and/or Head of Household filing status are met. Then, submit Form 8867 with the taxpayer’s return or amended return claiming the EIC, the CTC/ACTC/ODC, the AOTC, and/or HOH filing status. If you are the paid tax return preparer signing the return and you are filing the return electronically, file the completed Form 8867 electronically with the return. If you are the paid tax return preparer signing the return and you are not electronically filing the return, or mailing the return to the IRS for the taxpayer, provide the completed Form 8867 to the taxpayer with instructions to file this form with their return.

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