E-file diagnostic: Form 8867 Paid Preparer's Due Diligence Checklist
Learn how to complete the required Form 8867 Paid Preparer's Due Diligence Checklist when claiming Child Tax Credit, Additional Child Tax Credit, or Credit for Other Dependents to avoid e-file errors and potential penalties.
Form 8867 Paid Preparer's Due Diligence Checklist: You have taken the Child Tax Credit, Additional Child Tax Credit, or the Credit for Other Dependents but have not completed the required Form 8867. Go to Organizer / Credits / Child Tax Credit / Form 8867 / Paid Preparer Selection and generate a Form 8867 by selecting Yes under the include column for the applicable paid preparer that did the work on this credit. Then fill out the Form 8867 organizer that generates below the paid preparer selection screen. The penalty for failure to meet the due diligence requirements with respect to returns and claims for refund is $635 per credit per return.
Cause
This diagnostic occurs when you have claimed a credit mentioned in the error but have not completed the required Form 8867 Paid Preparer's Due Diligence Checklist.
Solution
- Go to .
- Go to theChild Tax Credit(or the credit you are taking), then theForm 8867folder.
- Go to thePaid Preparer Selectionfolder.
- In theIncludecolumn, selectYesfor at least 1 preparer.
- When you selectYes, a folder will appear followingPaid Preparer Selectionwith the name of the preparer you selected.
- In that folder, enter the information forForm 8867.
- Run a full recompute and recreate the e-file.
