Some tax preparers told us they are uncomfortable asking the probing, sometimes sensitive questions necessary to meet the due diligence knowledge requirement.
Consider using the forms IRS uses to request documentation during audits. Tell your clients here's what you need to support your claim if you are audited by IRS. Do you have these documents, or can you get them? You don't have to review the documents, but if you do and you rely on the information to prepare a claim for the earned income tax credit (EITC), child tax credit or additional child tax credit (CTC/ACTC), credit for other dependents (ODC) or American opportunity tax credit (AOTC), be sure to keep a copy either on paper or electronically. Most of the forms are available in both English and Spanish.
For example, you could use the Form 886-H-EIC, Documents You Need to Send to Claim the Earned Income Credit on the Basis of a Qualifying Child or Children PDF (in Spanish PDF).
If you review the document with your client:
- show the client the legal requirements a qualifying child must meet,
- confirm with your client if they have or can get the supporting documents and
- advise your clients to keep these important supporting documents for the three years after the due date of the return in case the IRS audits the tax return.
Other Forms 886, 14801 and 14815, you may find useful in preparing your client's returns:
- Form 14824, Supporting Documents To Prove Filing Status PDF
- Form 886-H-DEP, Supporting Documents for Dependency Exemptions PDF (in Spanish PDF)
- Form 886-H-AOC, Supporting Documents to Prove American Opportunity Credit
- Form 886-H-AOTC-MAX, American Opportunity Tax Credit Available for a Maximum of 4 Years
- Form 14801, Child and Dependent Care Credit-Explanation of Items
- Form 14815, Supporting Documents to Prove the Child Tax Credit (CTC) and Credit for Other Dependents (ODC) for 2018-2020 and 2022-2025 PDF
- Form 886-H-ITIN, Dependent-Related Tax Benefits and Credits—Explanation of Items (for tax years before 2018)
More tools and tips
- Review our tips on preventing the most common processing errors.
- See examples about handling most common due diligence situations.
- Avoid the three most common EITC errors. See Handling the most common errors.
- Form 8867, Paid Preparer's Due Diligence Checklist
- Due Diligence on the go! Publication 4687, Paid Preparer Due Diligence PDF, is a guide to help you comply with your due diligence requirements. Also, available in Spanish PDF.
- Your clients can find out if they are eligible for the EITC by answering some questions and providing basic income information using the EITC Assistant on IRS.gov