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Special Report: Preparer Due Diligence Requirements Expanded to Cover More Credits

The Protecting Americans From Tax Hikes (PATH) Act of 2015 expanded the preparer due diligence requirements (and penalty for failure to comply) to the Section 24 Child Tax Credit (CTC), including the additional CTC, and the Section 25A(i) American Opportunity Tax Credit (AOTC). Under these requirements, paid return preparers must take specific steps to determine the taxpayer’s eligibility for, or the amount of, the EIC, CTC and AOTC. Failing to do so can result in a penalty of $510 per failure for taxable years beginning in 2016 or 2017.

This means the “same as last year” approach won’t cut it for returns containing CTC or AOTC this year. Those who prepare returns containing any of these credits must ask specific questions and perform tasks to protect themselves from the due diligence penalty. This special report helps identify some of these questions and actions.

Download Special Report: Preparer Due Diligence Requirements Expanded to Cover More Credits
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