🧾 What Is IRS Form 8867? — A Clean, No-Nonsense Guide for Paid Preparers (2025)
Form 8867 (Paid Preparer’s Due Diligence Checklist) is required when a paid preparer helps a client claim the EITC, CTC/ACTC/ODC, AOTC, or use the Head of Household (HOH) filing status.
It documents that you interviewed the taxpayer, asked adequate questions, verified eligibility, and kept records.
For returns filed in 2025, the penalty is $635 per failure (inflation-adjusted annually).
1️⃣ What It Is
Form 8867 confirms that the preparer performed IRS-required due diligence for certain credits or HOH status.
Attach it to Form 1040/1040-SR/1040-NR whenever those items are claimed.
2️⃣ When It’s Required
- Earned Income Tax Credit (EITC)
- Child Tax Credit (CTC), including ACTC and ODC
- American Opportunity Tax Credit (AOTC)
- Head of Household (HOH) filing status
3️⃣ Who Completes It
Any paid preparer who determines eligibility or computes amounts for the items above.
If multiple preparers are involved, each responsible preparer may need their own Form 8867; a nonsigning preparer must give their completed form to the signing preparer to file.
4️⃣ Recordkeeping (3 Years)
Keep due-diligence records for 3 years from the latest of the filed/due/signed/provided dates (as applicable). Include:
- A copy of Form 8867
- Worksheets used to determine eligibility and amounts
- Supporting documents relied on (school/lease/income, Form 1098-T, etc.)
- Interview notes and taxpayer responses, plus any follow-up inquiries
5️⃣ Penalties (2025)
The IRS may assess $635 per failure if you: fail to submit Form 8867, fail to make reasonable inquiries, fail to use required worksheets, or fail to keep records.
Multiple items on one return (e.g., EITC + CTC + AOTC + HOH) can stack.
6️⃣ Quick Checklist
- Interview the taxpayer; ask adequate questions and resolve inconsistencies
- Document answers and retain those notes
- Review and, where appropriate, examine supporting documents
- Complete the IRS worksheets for each item
- Attach Form 8867 to the return (e-file or paper)
- Keep everything for 3 years
7️⃣ FAQs
Q1. Do I need Form 8867 if the return only uses HOH?
Yes. HOH status is covered by due-diligence rules.
Q2. Can a nonsigning preparer complete Form 8867?
Yes—provide it to the signing preparer to file with the return.
Q3. What counts as adequate documentation?
Copies of Form 8867, completed worksheets, interview notes, and any documents you relied on (school/lease/income/1098-T, etc.).