Userid: CPM              Schema: instrx Leadpct: 100%          Pt. size: 9         Draft       Ok to Print
AH XSL/XML              Fileid: … orm-8867/202411/a/xml/cycle03/source                                  (Init. & Date) _______

Page 1 of 5                                                                                             14:33 - 18-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Instructions for Form 8867

(Rev. November 2024)
Paid Preparer’s Due Diligence Checklist for the Earned Income Credit, American 
Opportunity Tax Credit, Child Tax Credit (Including the Additional Child Tax Credit 
and Credit for Other Dependents), and/or Head of Household Filing Status

Section references are to the Internal Revenue Code unless            Only paid tax return preparers should complete this form. 
otherwise noted.                                                      If you were paid to prepare a return for any taxpayer claiming the 
                                                                      EIC, the CTC/ACTC/ODC, the AOTC, and/or HOH filing status, 
Future Developments                                                   you must complete Form 8867 and meet the other due diligence 
For the latest information about developments related to Form         requirements described later in Purpose of Form.
8867 and its instructions, such as legislation enacted after they 
were published, go to IRS.gov/Form8867.                               Form 8867 must be filed with the return.   Form 8867 must be 
                                                                      filed with the taxpayer’s return or amended return claiming the 
Reminders                                                             EIC, the CTC/ACTC/ODC, the AOTC, and/or HOH filing status.
Multiple Forms 8867.  Multiple Forms 8867 may be submitted            Signing tax return preparers. 
electronically for one return. See Multiple Forms 8867 for one        • If you are the paid tax return preparer signing the return and 
return, later.                                                        you are filing the return electronically, file the completed Form 
                                                                      8867 electronically with the return.
Head of Household (HOH) filing status.  For more information          • If you are the paid tax return preparer signing the return and 
on eligibility to claim HOH filing status, see Pub. 501.              you are not electronically filing the return, or mailing the return to 
Election to use prior year earned income has expired.          The    the IRS for the taxpayer, provide the completed Form 8867 to the 
election to use prior year earned income to figure the earned         taxpayer with instructions to file this form with their return.
income credit (EIC) or additional child tax credit (ACTC) is          • If you are the paid tax return preparer signing the return and 
expired. However, if you prepare a tax return for a tax year in       you are mailing the return to the IRS for the taxpayer (which 
which your client properly elects to figure a credit using prior year should only be done after the taxpayer has reviewed and signed 
earned income, your due diligence requirements apply to the           the paper return), mail the completed Form 8867 to the IRS with 
computation of earned income for 2 years. See Election to use         the return.
prior year earned income, later.                                      Nonsigning tax return preparers.    If you are the paid tax return 
EIC rules for taxpayers with a qualifying child. If your client       preparer for the EIC, the CTC/ACTC/ODC, the AOTC, and/or 
is claiming the EIC with a qualifying child, you should follow the    HOH filing status covered by Form 8867, but you are not 
rules that apply to filers with a qualifying child or children when   required to sign the return as preparer, provide the signing tax 
determining whether your client is eligible to claim the EIC even if  return preparer the completed form in either electronic or paper 
none of your client's qualifying children have a valid SSN issued     format.
on or before the due date of your client's return (including            You can find rules regarding who is a signing tax return 
extensions). However, in determining the amount of the credit,        preparer and a nonsigning tax return preparer in Treasury 
only qualifying children with valid SSNs make your client eligible    Regulations section 301.7701-15. If you are the only paid tax 
for an increased credit amount.                                       return preparer for the taxpayer’s return, you are the signing tax 
                                                                      return preparer and must sign the return as preparer. Failure to 
EIC rules for taxpayers without a qualifying child.      Your         sign the return when required may subject you to a penalty.
client may be able to qualify for the EIC under the rules for 
taxpayers without a qualifying child even if your client has a        Multiple Forms 8867 for one return. Form 8867 must be 
qualifying child for the EIC who is claimed as a qualifying child by  completed by a paid tax return preparer responsible for a 
another taxpayer. For more information, see Pub. 596.                 taxpayer's claim of the EIC, the CTC/ACTC/ODC, the AOTC, 
                                                                      and/or HOH filing status; therefore, there may be multiple Forms 
Social security number (SSN) required.  Children identified           8867 for one return or amended return. If there are multiple 
by an IRS individual taxpayer identification number (ITIN) or         Forms 8867 for a paper return, attach all Forms 8867 to the 
adoption taxpayer identification number (ATIN) can no longer be       return to be submitted to the IRS. If there are multiple Forms 
claimed for the child tax credit (CTC) or ACTC. A taxpayer must       8867 for an e-filed return, e-file will accept transmission of up to 
include on the tax return the required SSN for each qualifying        four Forms 8867. All Forms 8867 must be retained as provided in 
child for whom the CTC or the ACTC is claimed. However,               Document Retention, later.
children without an SSN but with an ITIN or ATIN may still qualify 
your client for the nonrefundable credit for other dependents           Example. Paid tax return preparer A determined taxpayer T's 
(ODC).                                                                eligibility for, and the amount of, the EIC claimed on T's return. 
                                                                      Paid preparer B determined T's eligibility for, and the amount of, 
American Opportunity Tax Credit (AOTC). For information on            the AOTC claimed on T's return and also signs the return as the 
eligibility for the AOTC, see Pub. 970.                               signing tax return preparer. Two Forms 8867 must be completed, 
                                                                      one prepared by A for the EIC, and one prepared by B for the 
General Instructions                                                  AOTC. The Form 8867 completed by A as a nonsigning preparer 
                                                                      must be provided to B to be filed along with T’s return. The Form 
Form 8867 covers the EIC, the CTC/ACTC/ODC, the AOTC,                 8867 completed by B as the signing preparer should also be 
and/or HOH filing status. You should check the boxes                  filed with T's return.
corresponding to all benefits for which you determined the 
taxpayer is eligible.

                                   Instructions for Form 8867 (Rev. 11-2024)  Catalog Number 59407V
Jun 28, 2024                       Department of the Treasury  Internal Revenue Service  www.irs.gov

Page 2 of 5     Fileid: … orm-8867/202411/a/xml/cycle03/source                                    14:33 - 18-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Purpose of Form                                                      Part I—Due Diligence Requirements
As a paid tax return preparer, you are required to exercise due      Complete questions 1–8 for all benefits for which you were the 
diligence when preparing any client’s return or claim for refund.    paid tax preparer determining the taxpayer's eligibility or the 
As part of exercising due diligence, you must interview the client,  amount of the credit.
ask adequate questions, and obtain appropriate and sufficient 
information to determine the correct reporting of income,            Line 1
claiming of tax benefits (such as deductions and credits), and       You should prepare the return based only on information related 
compliance with the tax laws.                                        to the applicable tax year for which you are filing the return. The 
 You must also meet specific due diligence requirements set          information on Form 8867 should be for the year of the Form 
forth in Treasury Regulations when you prepare returns and           1040, 1040-SR, 1040-NR, or 1040-SS that you are filing.
claims for refund involving the EIC, the CTC/ACTC/ODC, the           Election to use prior year earned income.    Depending on the 
AOTC, and/or HOH filing status. To meet these due diligence          year, your client may be eligible to elect to use prior year earned 
requirements, you may need to ask additional questions and           income to figure the EIC or ACTC if your client’s prior year 
obtain additional information to determine your client’s eligibility income was more than your client’s earned income for the tax 
to claim the credit(s) and/or HOH filing status and to figure the    year being filed. If you prepare a tax return in which your client 
amount(s) of any credit(s) claimed. Failure to meet the due          properly elects to figure the EIC, ACTC, or both credits using 
diligence requirements could result in a penalty for each failure.   prior earned income, the due diligence requirements set forth in 
See Part VI—Eligibility Certification, later, for more information.  Treasury Regulations apply to the preparer's computation of 
Also, see section 6695(g) and Treasury Regulations section           earned income for 2 years. The preparer's computation of 
1.6695-2.                                                            earned income for 2 years must include the following.
                                                                     • The current tax year if the election requires that their prior tax 
 You will have complied with the due diligence                       year earned income be more than their current tax year earned 
requirements set forth in Treasury Regulations for the EIC,          income.
the CTC/ACTC/ODC, the AOTC, and/or HOH filing status                 • The prior tax year to determine the earned income used to 
claimed on a return or claim for refund if you do all of the         compute each credit claimed under the election. If the taxpayer 
following.                                                           makes this election, answer “Yes” on line 1 of the Form 8867. 
 1. Meet the knowledge requirement by interviewing the               You do not have to recompute the prior tax year earned income if 
taxpayer, asking adequate questions, contemporaneously               you prepared that prior year tax return.
documenting the questions and the taxpayer’s responses on the 
return or in your notes, reviewing adequate information to                   The election to use a prior year earned income may not 
determine if the taxpayer is eligible to claim the credit(s) and/or    !     apply for figuring both the EIC and ACTC. To see if such 
HOH filing status, and to figure the amount(s) of the credit(s)      CAUTION an election is enacted for a particular tax year and to see 
claimed.                                                             which credit(s) apply, go to IRS.gov/Form8867.
 2. Complete Form 8867 truthfully and accurately and 
complete the actions described on Form 8867 for any applicable       Line 2
credit(s) claimed and HOH filing status, if claimed.                 You must complete the applicable IRS worksheet for the EIC, the 
 3. Submit Form 8867 in the manner required.                         CTC/ACTC/ODC, and/or the AOTC (or your own worksheet that 
                                                                     provides the same information), as well as all required forms and 
 4. Keep all five of the following records for 3 years from the      schedules for each credit claimed on the return for which you are 
latest of the dates specified later in Document Retention.           the paid tax return preparer. The worksheets for the EIC and/or 
 a. A copy of Form 8867.                                             the CTC/ACTC/ODC can be found in the Form 1040, or 1040-SS 
 b. The applicable worksheet(s) or your own worksheet(s) for         or Schedule 8812 (Form 1040) instructions. You can find the 
any credits claimed (see Due Diligence Requirements, later).         AOTC worksheet in the Instructions for Form 8863. Completion 
                                                                     of these forms, schedules, and worksheets assists you in 
 c. Copies of any documents provided by the taxpayer on              determining the taxpayer’s eligibility for the credit and the correct 
which you relied to determine the taxpayer’s eligibility for the     amount of the credit and is required under the due diligence 
credit(s) and/or HOH filing status and to figure the amount(s) of    requirements set forth in Treasury Regulations. If the taxpayer 
the credit(s).                                                       claimed HOH filing status and did not claim any of the credits, 
 d. A record of how, when, and from whom the information             check the “N/A” box.
used to prepare Form 8867 and the applicable worksheet(s) was 
obtained.                                                            Lines 3 and 4
 e. A record of any additional information you relied upon,          As a paid tax return preparer, when determining the taxpayer’s 
including questions you asked and the taxpayer’s responses, to       eligibility to claim the EIC, the CTC/ACTC/ODC, the AOTC, 
determine the taxpayer’s eligibility for the credit(s) and/or HOH    and/or HOH filing status and to determine the amount of the 
filing status and to figure the amount(s) of the credit(s).          credit claimed on a return or claim for refund, you must not use 
                                                                     information that you know, or have reason to know, is incorrect. 
                                                                     You may not ignore the implications of information provided to or 
Specific Instructions                                                known by you, and you must make reasonable inquiries if a 
Enter the taxpayer’s name as it appears on the return and enter      reasonable and well-informed tax return preparer, 
the taxpayer identification number (TIN) for the taxpayer (primary   knowledgeable in the law, would conclude that the information 
TIN, if filing a joint return).                                      provided to you appears to be incorrect, inconsistent, or 
                                                                     incomplete. You must also contemporaneously document in your 
 Enter the name and preparer tax identification number (PTIN)        files any reasonable inquiries made and the responses to these 
of the paid tax return preparer who determined the taxpayer's        inquiries.
eligibility to claim the EIC, the CTC/ACTC/ODC, the AOTC, 
and/or HOH filing status for which Form 8867 is being completed        You must know the tax law for each credit and/or HOH filing 
and to figure the amount(s) of any credit(s) claimed, even if the    status claimed on a return or claim for refund you prepare and 
preparer is not the tax return preparer signing the tax return.      use that knowledge to ask your client the right questions to get 

2

Page 3 of 5      Fileid: … orm-8867/202411/a/xml/cycle03/source                                         14:33 - 18-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

all the relevant facts to determine your client’s eligibility to claim documents are specifically required to demonstrate eligibility for 
the credit(s) and/or HOH filing status and to figure the amount(s)     the credits and/or HOH filing status.
of any credit(s) claimed.
                                                                         Residency of a Qualifying Child
  Example 1. Taxpayer X engages Preparer C to prepare their              School records or statement.
2024 federal income tax return. During the intake interview,           •
Taxpayer X states they are 25 years old, have never been               • Landlord or a property management statement.
married, and have two children ages 10 and 12. X also states           • Health care provider statement.
that they were self-employed, earned $12,000 from their lawn           • Medical records.
care business, and had no business expenses or other income.           • Childcare provider records.
Preparer C believes that X may be eligible for the EIC and the         • Placement agency statement.
ACTC. But the ages of the children seem inconsistent with the          • Social service records or statement.
age of the taxpayer. Additionally, the taxpayer's claim that they      • Place of worship statement.
have no business expenses seems inconsistent with their                • Indian tribal official statement.
income. Preparer C must exercise due diligence to determine              Disability of Qualifying Child
whether a credit can be claimed with respect to the children and       • Statement of medical doctor.
whether Taxpayer X meets the earned income requirements to             • Statement of other health care provider.
claim a credit. Because Preparer C is preparing Taxpayer X’s           • Statement of social services agency or program statement.
return for the year, Preparer C would have been required to 
exercise due diligence with respect to those items when                  Schedule C
preparing the return, and if Preparer C made the appropriate           • Business license.
inquiries during that process, then no additional questions would      • Forms 1099.
be necessary. However, if Preparer C did not previously ask            • Records of gross receipts provided by taxpayer.
about the ages of the children and the income requirements,            • Taxpayer's summary of income or summary of income 
Preparer C is required to make reasonable inquiries. Reasonable        provided by taxpayer.
inquiries could include the following.                                 • Records of expenses provided by taxpayer.
• Are these your foster or adopted children? If so, were the           • Taxpayer's summary of expenses or summary of expenses 
children placed in your home for foster care by an authorized          provided by taxpayer.
placement agency or court order or were they lawfully placed in        • Bank statements to show income and expenses.
your home for adoption?
• How long did the children live with you during 2024?                 Line 6
• If the taxpayer is not the parent, did any other relative also       If your client’s return is selected for audit, the IRS may ask your 
reside with these children for more than half the year in 2024?        client to provide documents to show eligibility for the EIC, the 
• How much did you charge to care for each lawn?                       CTC/ACTC/ODC, the AOTC, and/or HOH filing status claimed on 
• Do you have records of the amount of money you received              the return or claim for refund and the computation of the 
from lawn work?                                                        amount(s) of any credit(s) claimed. The credit(s) and/or HOH 
• Did you have any expenses for lawn mowing equipment, fuel,           filing status may not be allowed without this information. You can 
or other supplies for your business? If not, how did you provide       help your clients be prepared to answer questions about their 
lawn care services?                                                    eligibility for the credit(s) claimed and the correctness of the 
• How many lawns did you take care of?                                 amount(s) of any credit(s) claimed if you help them understand 
                                                                       that the IRS may ask for underlying documentation regarding 
  Preparer C must contemporaneously document these                     eligibility to claim the credit(s) and/or HOH filing status and the 
inquiries in their files, along with the responses.                    computation of the amount(s) of any credit(s) claimed.
  Example 2. Assume the same facts as in Example 1, except 
that Preparer C also prepared X's 2023 return and at that time         Line 7
Preparer C was able to verify that the two children are X's legally    Unless an exception applies, if the EIC, the CTC/ACTC/ODC, 
adopted children. When preparing X's 2024 return, Preparer C is        and/or the AOTC claimed in a prior year was denied for a reason 
not required to make additional inquiries to determine X's             other than a clerical or math error, a claim for the credit on the 
relationship to the two children for purposes of the requirement       taxpayer’s return will be denied unless Form 8862 is attached to 
that a return preparer must not know, or have reason to know,          the return. See the Form 8862 instructions for more information. 
that a claim for the ACTC is based on false or incorrect               If the taxpayer claimed HOH filing status and did not claim any of 
information.                                                           the credits, check the “N/A” box.

Line 5                                                                 Line 8
Keep copies of any documents provided by the taxpayer on               The EIC, the CTC/ACTC/ODC, and the AOTC are determined 
which you relied to prepare the return, determine the taxpayer’s       using information that includes information about the kind and 
eligibility for the benefits, and figure the amount(s) of the EIC, the source of income reported on a taxpayer’s return. For 
CTC/ACTC/ODC, or the AOTC. List the documents provided by              self-employed individuals, this information is generally reported 
the taxpayer in the space provided. See Document Retention,            on Schedule C (Form 1040) as income from self-employment. To 
later, for more information on the due diligence recordkeeping         exercise due diligence when determining eligibility for, and the 
requirements. If you already requested documents from the              amount of, the credit(s) for a self-employed individual, you may 
taxpayer to substantiate eligibility for a tax credit or HOH filing    also be required to ask additional questions to determine 
status as part of exercising due diligence when preparing the          whether the Schedule C is correct and complete unless you 
return for the particular tax year, you do not need to request         prepared the individual’s return and/or Schedule C and already 
those documents again.                                                 exercised due diligence at that time. Additional guidance on 
                                                                       Schedule C and the EIC is available as part of the EIC Tax 
  The following are examples of documents that you may rely            Return Preparer Toolkit at EITC.IRS.GOV.
on to determine a taxpayer’s eligibility to claim the credit(s), 
and/or HOH filing status, and the amount(s) of any credit(s)             If a taxpayer is not reporting self-employment income on 
claimed. This list is not all-inclusive and none of these              Schedule C, check “N/A.”

                                                                                                                                           3

Page 4 of 5  Fileid: … orm-8867/202411/a/xml/cycle03/source                                     14:33 - 18-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                               A taxpayer who claims the CTC or the ACTC must 
Part II—Due Diligence Questions for                                    !       include on the tax return the required SSN of each 
Returns Claiming EIC                                                   CAUTION qualifying child.

Line 9                                                                 Line 12
As a paid tax return preparer, you must exercise due diligence to      If the taxpayer is the custodial parent of the child claimed for the 
determine whether a taxpayer meets all of the eligibility              credit and has completed Form 8332 or signed a similar 
requirements for the EIC. Although lines 9a, 9b, and 9c only ask       document containing the same information, which released a 
three specific questions related to claiming a qualifying child for    claim to exemption for the child, the taxpayer is not entitled to 
the EIC, all of the eligibility requirements for claiming the EIC      claim the child for the CTC/ACTC/ODC.
must be met. Therefore, your client may not claim the EIC unless 
all of the eligibility requirements for the EIC are satisfied, even if If the taxpayer is the noncustodial parent and has a Form 
you answer “Yes” to questions 9a, 9b, and 9c.                          8332 (or equivalent document) signed by the custodial parent, 
                                                                       you should determine whether there is a more recent form or 
Line 9a. If the taxpayer is claiming the EIC and does not have a       document revoking the release of the claim to exemption for the 
qualifying child, skip questions 9b and 9c, and go to question 10.     child. See the Instructions for Form 8332 for more information. If 
For more information, see Pub. 596.                                    the taxpayer is not claiming the credit(s) for a child of divorced or 
Line 9c—Tiebreaker rules. These rules determine if a                   separated parents (or parents who live apart), check “N/A.”
taxpayer may claim a child as a qualifying child for the EIC when 
the child meets the definition of a qualifying child for more than     Part IV—Due Diligence Questions for 
one person. If, under these rules, the taxpayer may not claim a        Returns Claiming AOTC
child as a qualifying child for the EIC, the taxpayer may be able 
to claim the EIC under the rules for a taxpayer without a              As a paid tax return preparer, you must exercise due diligence to 
qualifying child. If the taxpayer is not claiming the EIC for a child  determine whether a taxpayer meets all of the eligibility 
that is the qualifying child of more than one person, check “N/A.”     requirements for the AOTC and has paid the qualified tuition and 
• If only one of the persons is the child's parent, the child is       related expenses used to figure the AOTC. Although line 13 only 
treated as the qualifying child of the parent.                         asks about substantiation of qualified tuition and related 
• If the parents file a joint return together and can claim the child  expenses, your client must meet all of the eligibility requirements 
as a qualifying child, the child is treated as the qualifying child of for claiming the AOTC. Therefore, your client may not claim the 
both of the parents.                                                   AOTC unless all of the eligibility requirements for the AOTC are 
• If the parents do not file a joint return together but both          satisfied, even if you answer “Yes” to the question on line 13.
parents claim the child as a qualifying child, the child is treated    Qualified tuition and related expenses.    For more information 
as the qualifying child of the parent with whom the child lived for    determining whether expenses meet the definition of qualified 
the longer period of time during the year. If the child lived with     tuition and related expenses, see Pub. 970.
each parent for the same amount of time, the child is treated as 
the qualifying child of the parent who had the higher adjusted         Tuition Statement (Form 1098-T).   See Pub. 970 and the 
gross income (AGI) for the year.                                       Instructions for Form 8863 for procedures that need to be 
• If no parent can claim the child as a qualifying child, the child    followed to claim the AOTC if the student did not receive Form 
is treated as the qualifying child of the person who had the           1098-T. Form 1098-T reports the amount the student paid to the 
highest AGI for the year.                                              institution for qualified tuition and related expenses during the 
• If a parent can claim the child as a qualifying child but no         calendar year, as well as certain refunds, reimbursements, 
parent does so, the child is treated as the qualifying child of the    scholarships, and grants processed and administrated by the 
person who had the highest AGI for the year, but only if that          school.
person's AGI is higher than the highest AGI of any of the child’s      A taxpayer may claim the AOTC only for qualified tuition and 
parents who can claim the child.                                       related expenses actually paid during the calendar year. 
  Subject to the rules just described, the taxpayer and the other      Amounts reported on the Form 1098-T may not accurately reflect 
person(s) may be able to choose which of them treats the child         amounts actually paid for qualified expenses. Therefore, you 
as a qualifying child. If the taxpayer allows another person to        must verify the amount of qualified tuition and related expenses 
treat the child as a qualifying child, the taxpayer is not eligible to actually paid by, or on behalf of, the student to determine the 
claim the EIC for the same child. Also, generally, EIC claims          amount of the AOTC for which your client may claim the AOTC. 
must be consistent with claims for other child-related benefits.       For more information on eligibility for the AOTC and on 
For examples and details, see Pub. 596.                                determining the expenses that qualify for the AOTC, see Pub. 
                                                                       970, Form 8863, and the Instructions for Form 8863.
  In many cases, the taxpayer may be able to tell you whether 
their AGI is higher than the AGI of the child’s parents or other       Part V—Due Diligence Questions for 
person who might also claim the child.
                                                                       Claiming HOH
Part III—Due Diligence Questions for                                   As a paid tax return preparer, you must exercise due diligence to 
                                                                       determine whether a taxpayer meets all of the eligibility 
Returns Claiming CTC/ACTC/ODC                                          requirements to qualify for HOH filing status. Although line 14 
As a paid tax return preparer, you must exercise due diligence to      only asks about substantiation that the taxpayer was unmarried 
determine whether a taxpayer meets all of the eligibility              (or considered unmarried) and provided more than half of the 
requirements for the CTC/ACTC/ODC. Lines 10, 11, and 12 only           cost of keeping up a home for the year for a qualifying person, 
ask three specific questions about eligibility for the CTC/ACTC/       your client must meet all of the eligibility requirements for 
ODC. However, your client must meet all of the eligibility             claiming HOH filing status. Your client may not claim HOH filing 
requirements for claiming the CTC/ACTC/ODC. Therefore, your            status unless all of the eligibility requirements for HOH filing 
client may not claim the CTC/ACTC/ODC unless all of the                status are satisfied, even if you answer “Yes” to the question on 
eligibility requirements for these credits are satisfied, regardless   line 14. For more information on HOH filing status, see Pub. 501.
of the answers to the questions on line 12.

4

Page 5 of 5      Fileid: … orm-8867/202411/a/xml/cycle03/source                                       14:33 - 18-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                      You must keep those records for 3 years from the latest of the 
Part VI—Eligibility Certification                                   following dates.
Failure to meet the due diligence requirements for claiming the     • The due date of the tax return (not including extensions).
EIC, the CTC/ACTC/ODC, the AOTC, and/or HOH filing status           • The date the return was filed (if you are a signing tax return 
could result in a $635 (amount for a return or claim for refund     preparer electronically filing the return).
filed in 2025) penalty for each failure. For example, if you are    • The date the return was presented to the taxpayer for 
paid to prepare a return claiming the EIC, the CTC/ACTC/ODC,        signature (if you are a signing tax return preparer not 
the AOTC, and/or HOH filing status, and you fail to meet the due    electronically filing the return).
diligence requirements for all of these credits, you could be       • The date you submitted to the signing tax return preparer the 
subject to a penalty of $2,540.                                     part of the return for which you were responsible (if you are a 
Penalty amount adjusted for inflation.  The penalty amount          nonsigning tax return preparer).
for failure to meet the due diligence requirements for claiming the   These records may be kept on paper or electronically in the 
EIC, the CTC/ACTC/ODC, the AOTC, and/or HOH filing status is        manner described in Rev. Proc. 97-22 (or later update). Rev. 
adjusted for inflation each year. To find the penalty amount, go to Proc. 97-22 is on page 9 of Internal Revenue Bulletin 1997-13, 
Consequences of Not Meeting Your Due Diligence                      which is available at IRS.gov/pub/irs-irbs/irb97-13.pdf.
Requirements on IRS.gov/Form8867.
                                                                    Paperwork Reduction Act Notice.   We ask for you to obtain 
                                                                    the information on this form to carry out the Internal Revenue 
Document Retention                                                  laws of the United States. You are required to obtain this 
To meet the due diligence requirements for returns or claims for    information.
refund claiming the EIC, the CTC/ACTC/ODC, the AOTC, and/or 
HOH filing status, you must keep all of the following records.        You are not required to obtain the information requested on a 
                                                                    form that is subject to the Paperwork Reduction Act unless the 
1. A copy of Form 8867.                                             form displays a valid OMB control number. Books or records 
2. The applicable worksheet(s) or your own worksheet(s) for         relating to a form or its instructions must be retained as long as 
any credits that are claimed that are specified in Due Diligence    their contents may become material in the administration of any 
Requirements, earlier.                                              Internal Revenue law. Generally, tax returns and return 
3. Copies of any documents provided by the taxpayer on              information are confidential, as required by Internal Revenue 
which you relied to determine the taxpayer’s eligibility for the    Code section 6103.
credit(s) and/or HOH filing status and to figure the amount(s) of     The average time and expenses required to complete and file 
the credit(s) claimed.                                              this form will vary depending on individual circumstances. For 
4. A record of how, when, and from whom the information             the estimated averages, see the instructions for your income tax 
used to prepare Form 8867 and the applicable worksheet(s) was       return.
obtained.
                                                                      If you have comments concerning the accuracy of these time 
5. A record of any additional information you relied upon,          estimates or suggestions for making this form simpler, we would 
including questions you asked and the taxpayer’s responses, to      be happy to hear from you. See the instructions for the tax return 
determine the taxpayer’s eligibility for the credit(s) and/or HOH   with which this form is filed.
filing status and to figure the amount(s) of the credit(s).

                                                                                                                                       5