On July 20, the IRS released a draft of the 2016 Form 8867 – Paid Preparer’s Due Diligence Checklist.

In our tax practice, we have been completing the Form 8867 for several years as part of our compliance requirements when claiming the earned income credit (EIC) on a client’s return. Beginning for 2016 returns, new legislation requires that we complete the same checklist when preparing a return that claims the child tax credit (CTC) or the American Opportunity Tax Credit (AOTC).

There are lots of changes to the form. It’s grown from one page to two pages and from seven “yes/no” questions to 20.

Join us at a fall tax update class for more information on this change to 2016 tax returns, plus details on many more 2016 changes.

© 2016 Vern Hoven & Sharon Kreider