8867 for Tax Year 2018-2025 Form

What is the Form 8867

The Form 8867, officially known as the Paid Preparer's Due Diligence Checklist, is a document required by the IRS for tax preparers who assist clients in claiming the Earned Income Credit (EIC) and other tax credits. This form is crucial for ensuring that all eligibility criteria are met and that the information provided is accurate. For the tax year 2017, this form helps tax professionals maintain compliance with IRS regulations and avoid potential penalties associated with improper claims.

How to use the Form 8867

Using the Form 8867 involves several steps to ensure proper completion and submission. Tax preparers must fill out the form accurately, detailing the due diligence performed when preparing a client's tax return. This includes verifying the client's eligibility for the EIC and other credits. The form must be submitted alongside the client's tax return, either electronically or via mail, depending on the method chosen for filing. It is essential to retain a copy of the completed form for record-keeping purposes.

Steps to complete the Form 8867

Completing the Form 8867 requires careful attention to detail. Here are the key steps:

• Gather necessary documentation from the client, including income statements and Social Security numbers.
• Review the eligibility requirements for the EIC and other applicable credits.
• Fill out the form, ensuring all required fields are completed accurately.
• Sign and date the form, confirming that due diligence has been performed.
• Submit the form with the client's tax return by the filing deadline.

Legal use of the Form 8867

The legal use of the Form 8867 is mandated by the IRS for tax preparers who assist clients in claiming the EIC. Failure to complete and submit this form when required can result in significant penalties for the preparer. It is essential to understand the legal implications of the form, including the requirement to maintain records of due diligence efforts and the potential consequences of non-compliance.

Filing Deadlines / Important Dates

For the tax year 2017, the filing deadline for submitting the Form 8867 along with the tax return is typically April 15 of the following year. However, if this date falls on a weekend or holiday, the deadline may be adjusted. It is important for tax preparers to be aware of these dates to ensure timely submission and avoid penalties. Additionally, extensions may be available, but the form must still be submitted by the extended deadline.

Required Documents

To complete the Form 8867, tax preparers must collect several key documents from their clients, including:

• Proof of income, such as W-2 forms or 1099s.
• Social Security cards for all qualifying children.
• Documentation supporting residency and relationship to the taxpayer.
• Any other relevant tax documents that may affect eligibility for the EIC.

Eligibility Criteria

The eligibility criteria for claiming the Earned Income Credit, which the Form 8867 supports, include specific income limits, filing status, and the presence of qualifying children. Tax preparers must ensure that clients meet these criteria before completing the form. Understanding the nuances of eligibility is vital for accurate tax preparation and compliance with IRS regulations.