Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

 Due Diligence Compliance is no joke!

We have all heard the saying, “the best offense is a good defense”. Your best defense in a due diligence audit is knowing the rules and having the documentation/notes to back it up!

Below is a summary of Preparer Due Diligence Requirements : For a more thorough explanation, click HERE!

  • Form 8867 – Complete the Checklist whenever certain items are present on the federal tax return (EITC, CTC, ACTC, AOTC, HOH Filing Status)
  • Calculation of Credits – Ensure all worksheets are complete and credits are calculated correctly.
  • Knowledge Requirement  – Ask questions of your taxpayer and document their responses to demonstrate their qualification for each credit claimed on the return. Sometimes, this is not the most pleasant process and involves asking very personal questions and documenting the taxpayer’s answers. The rule of thumb is the more information, the better! Keep this documentation with the taxpayers file.
  • Notes/Documentation Retention – Maintain copies of the above, along with a record of when and how the information was collected. Also, keep a copies of all the documents you reviewed to eligibility for the credits on the return!

Below are some Links to IRS resources to clear out the cob webs before things get rolling again!

Preparer Due Diligence Compliance – This link provides IRS information concerning:

  • Refundable Credits being monitored
  • Most common EITC “Errors” … What they most commonly fine people for.
  • What enforcement actions will the IRS employ
  • Educational Resources
    • Pretty Legit!

EITC Training Course – It is a good idea have each of your preparers complete this course. Additionally, keep a record/roster of the prepares name, date course was started and record of completion.

May the odds be in your favor!