# Tax preparer due diligence questionnaire for Form 8867 credits

[Home](/) / [Tax organizers](/templates/tax-organizers) / Due diligence questionnaire (Form 8867)

By [Arthur Teboul](/authors/arthur-teboul), Founder, DokuTrak. Published 2026-10-28, updated 2026-10-28.

> **In brief:** A tax preparer due diligence questionnaire template records the questions you ask before claiming the EIC, the child tax credit, the AOTC or head of household status, and the client’s answers. It follows Form 8867 part by part and lists the proof each answer calls for, so your file shows how you reached eligibility.

## The organizer: Paid preparer due diligence questionnaire (Form 8867)

**Not advice.** This page is general information, not tax, legal or HR advice. Rules change: check the cited source and ask your own professional before you rely on it. Last reviewed October 25, 2026.

The preparer asks these questions in the interview and writes the client’s answer next to each one. Use only the parts that match the credits on the return.

For each yes, collect the proof listed and note which document you relied on. If an answer looks incomplete or inconsistent, write the follow-up question and the reply in the notes.

The client signs at the end. Keep the signed questionnaire with Form 8867 and the worksheets.

### Interview record and household

Based on: Form 8867, Part I; 26 CFR 1.6695-2(b)(3) and (b)(4)

- Taxpayer and spouse names, tax year, date of the interview and preparer name
- Was the interview held in person, by phone or by video?
- Has a prior-year return been prepared by someone else? If yes, send: Prior-year federal return with all schedules.
- Has the IRS reduced or denied the EIC, CTC or AOTC on a prior return? If yes, send: The IRS letter explaining the denial; Form 8862, if required.
- Names, birth dates and relationship of everyone who lived in the home during the year
- Could another person, such as the other parent or a grandparent, also claim any child? If yes, send: Custody order or parenting plan, if one exists.

### Earned income credit: qualifying child (if it applies)

Based on: Form 8867, Part II; Publication 596

- Is each child your son, daughter, stepchild, placed child, sibling or a descendant of one of them? If yes, send: Birth certificate; Adoption or agency placement papers, if any.
- Was each child under 19 at year end, under 24 and a full-time student, or permanently and totally disabled? If yes, send: Birth certificate; School enrollment letter for a student; Doctor’s statement for a disability.
- Did each child live with you in the United States for more than half the year? If yes, send: School, medical or childcare records showing the child’s address; Landlord or property management statement.
- Does everyone on the return have a Social Security number valid for employment? If yes, send: Social Security card for each person.
- Did you have income from a business or self-employment? If yes, send: Forms 1099 received; Records or a summary of income and expenses; Bank statements showing business deposits.
- Investment income for the year, such as interest, dividends, capital gains and net rents (Publication 596 limit)
- Could you, or your spouse, be the qualifying child of another taxpayer?
- If you claim the credit with no qualifying child, were you at least 25 but under 65 at the end of the year? If yes, send: Proof of date of birth.

### Child tax credit and credit for other dependents (if it applies)

Based on: Form 8867, Part III; Schedule 8812 (Form 1040)

- Was each child under 17 at the end of the year? If yes, send: Birth certificate.
- Did each child live with you for more than half the year? If yes, send: School, medical or childcare records showing the child’s address.
- Does each child, and you or your spouse, have a Social Security number issued before the return due date? If yes, send: Social Security cards.
- Did the child provide more than half of their own support?
- Has a custodial parent signed Form 8332 or a similar release for any child? If yes, send: Signed Form 8332; Divorce decree pages that release the claim.
- Is a dependent you claim for the credit for other dependents a U.S. citizen, national or resident? If yes, send: Passport or other proof of status.

### American opportunity credit (if it applies)

Based on: Form 8867, Part IV; Form 8863; Publication 970

- Did the student receive Form 1098-T from the school? If yes, send: Form 1098-T.
- Was the student enrolled at least half-time for at least one academic period? If yes, send: Enrollment verification from the school.
- How many earlier years was the credit claimed for this student?
- Has the student been convicted of a felony for possessing or distributing a controlled substance?
- Did you buy books, supplies or equipment required for the course? If yes, send: Receipts and the course requirement list.
- Were any expenses paid with scholarships, grants or a tax-free employer benefit? If yes, send: Award letter or student account statement.

### Head of household (if it applies)

Based on: Form 8867, Part V; Publication 501

- Were you unmarried on the last day of the year? If yes, send: Divorce decree or legal separation order, if it ended during the year.
- If married, did your spouse live outside your home for the last six months of the year? If yes, send: Lease or utility bill in the spouse’s name at another address.
- Did you pay more than half the cost of keeping up the home? If yes, send: Rent or mortgage statements; Utility, insurance and repair bills.
- Who is the qualifying person, and how long did they live with you?

### Follow-up and signature

Based on: Instructions for Form 8867, Document Retention

- Answers that seemed incomplete or inconsistent, or that conflict with what you already know about the client, the follow-up asked and the reply
- Documents relied on, listed by name
- Client signature and date: I certify these answers are true and complete
- Preparer signature and date

Download: [PDF, fillable](https://dokutrak.com/downloads/pseo-v2/f3-tax-organizers/due-diligence-questionnaire.pdf) · [Word](https://dokutrak.com/downloads/pseo-v2/f3-tax-organizers/due-diligence-questionnaire.docx) · [Excel tracker](https://dokutrak.com/downloads/pseo-v2/f3-tax-organizers/due-diligence-questionnaire.xlsx)

## Why the interview has to be written down

Form 8867 is the checklist a paid preparer files with any return that claims the earned income credit, the child tax credit and its related credits, the American opportunity credit, or head of household status ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)). The form asks whether you did the work. The questionnaire is where that work lives.

The regulation sets four duties ([26 CFR 1.6695-2, Tax return preparer due diligence requirements](https://www.law.cornell.edu/cfr/text/26/1.6695-2)). **The completion requirement** means you fill in Form 8867 from information the client gave you or that you reasonably obtained. **The computation requirement** means you figure each credit on the IRS worksheet or your own equivalent. The knowledge and retention duties are the two this page serves most directly.

**The knowledge requirement** is the duty to make reasonable inquiries when what the client tells you looks incorrect, inconsistent or incomplete ([26 CFR 1.6695-2, Tax return preparer due diligence requirements](https://www.law.cornell.edu/cfr/text/26/1.6695-2)). You may not ignore the implications of what the client tells you or what you already know ([26 CFR 1.6695-2, Tax return preparer due diligence requirements](https://www.law.cornell.edu/cfr/text/26/1.6695-2)). You must also document those inquiries and the answers at the time you make them ([26 CFR 1.6695-2, Tax return preparer due diligence requirements](https://www.law.cornell.edu/cfr/text/26/1.6695-2)). A signed questionnaire, kept with the return, is the simplest way to meet that duty.

## What each part of Form 8867 asks you to confirm

The questionnaire mirrors the form, so a reviewer can match each answer to a line. Part I applies to every claim. The later parts apply only to the credits and the filing status on the return.

| Form 8867 part | Covers | Client questions to ask | Proof to request |
| --- | --- | --- | --- |
| Part I | All credits and head of household | Who lives in the home, who else could claim the child, prior denials | Prior-year return, any IRS letter about a denied credit |
| Part II | Earned income credit | Relationship, age and residency of each child, business income and expenses | Birth certificates, school or medical records, business income records |
| Part III | Child tax credit, additional child tax credit, credit for other dependents | Age at year end, Social Security numbers, release of claim by a parent | Social Security cards, signed Form 8332 |
| Part IV | American opportunity credit | Enrollment, years claimed before, expenses actually paid | Form 1098-T, receipts for course materials |
| Part V | Head of household | Marital status on the last day of the year, who paid the home costs | Divorce decree or separation papers, rent and utility records |

## Proving a qualifying child: relationship, age, residency

For the earned income credit, a qualifying child must pass an age test ([IRS Publication 596, Earned Income Credit](https://www.irs.gov/publications/p596)). The child must be under age 19 at the end of the year, or under 24 and a full-time student, and younger than the taxpayer, or any age if permanently and totally disabled ([IRS Publication 596, Earned Income Credit](https://www.irs.gov/publications/p596)). Ask for a birth date, not just an age. Two more EIC tests are easy to miss: the taxpayer cannot be the qualifying child of another person, and for 2026 the credit is not allowed if investment income exceeds $12,200 ([IRS Publication 596, Earned Income Credit](https://www.irs.gov/publications/p596)) ([Rev. Proc. 2025-32, 2026 inflation adjustments](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)). A taxpayer with no qualifying child must be at least 25 but under 65 at the end of the year ([IRS Publication 596, Earned Income Credit](https://www.irs.gov/publications/p596)).

The child tax credit uses a lower age. A qualifying child generally must be under 17 at the end of the tax year and must have lived with the taxpayer for more than half the year ([IRS, Child Tax Credit](https://www.irs.gov/credits-deductions/individuals/child-tax-credit)). The taxpayer, or the spouse on a joint return, and each child also need a Social Security number valid for employment ([IRS, Child Tax Credit](https://www.irs.gov/credits-deductions/individuals/child-tax-credit)).

Residency is where most follow-up questions land. The Form 8867 instructions give examples of residency proof, such as school records, a landlord or property management statement, medical records and childcare provider records ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)). None of these is required by itself, so note which one the client gave you ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)).

## Education credit and head of household questions

For the American opportunity credit, the student must have been enrolled at least half-time for at least one academic period, and must not have a felony drug conviction at year end ([IRS Publication 970, Tax Benefits for Education](https://www.irs.gov/publications/p970)). The credit can be claimed for the same student for no more than four tax years ([IRS Publication 970, Tax Benefits for Education](https://www.irs.gov/publications/p970)). So ask how many times it was claimed before, including with another preparer.

Form 1098-T alone does not settle the amount. The instructions warn that amounts on the 1098-T may not match what was actually paid, so you must verify the qualified expenses ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)). Ask for the payment records as well as the form.

Head of household has three core tests ([IRS Publication 501, Dependents, Standard Deduction, and Filing Information](https://www.irs.gov/publications/p501)). The client is unmarried or considered unmarried on the last day of the year, paid more than half the cost of keeping up the home, and had a qualifying person living there for more than half the year ([IRS Publication 501, Dependents, Standard Deduction, and Filing Information](https://www.irs.gov/publications/p501)). A married client can be considered unmarried if, for example, the spouse did not live in the home during the last six months of the year ([IRS Publication 501, Dependents, Standard Deduction, and Filing Information](https://www.irs.gov/publications/p501)).

## What to keep, for how long, and the penalty

You keep five records for 3 years from the latest of the return due date or the filing date ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)). They are the Form 8867, the credit worksheets, copies of documents you relied on, a record of how and when you got the information, and a record of the questions you asked with the answers ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)). The completed questionnaire covers the last two.

The penalty applies per failure. For a return filed in 2027, such as a 2026 return, it is $665 for each credit or status where due diligence was not met, so a return claiming all four can cost $2,660 ([Rev. Proc. 2025-32, 2026 inflation adjustments](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)). The amount is adjusted for inflation each year ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)).

- If a credit was denied in a prior year for a reason other than a math or clerical error, Form 8862 may have to be attached before the credit is allowed again ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)).
- If you already asked for proof earlier in the same tax year, you do not need to request it again ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)).
- Keep the records on paper or electronically, as long as you can produce them on request ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)).

## Questions people ask

### What are the four due diligence requirements for tax preparers?

Under the Treasury regulation, a preparer must complete and submit Form 8867, compute the credits with a worksheet, meet the knowledge requirement by asking reasonable questions, and keep the records ([26 CFR 1.6695-2, Tax return preparer due diligence requirements](https://www.law.cornell.edu/cfr/text/26/1.6695-2)).

### How long must a preparer keep the due diligence questionnaire?

Keep it with the other due diligence records for 3 years from the latest of the return due date, the filing date or the date you gave the return to the client to sign ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)).

### What is the due diligence penalty for returns filed in 2027?

It is $665 per failure, and one return can carry up to four failures, one for each credit or status claimed, so up to $2,660 ([Rev. Proc. 2025-32, 2026 inflation adjustments](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)). For returns filed in 2026 it was $650 ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)). The amount changes each year with inflation.

### What if the client’s earned income credit was denied before?

If the denial was for a reason other than a math or clerical error, the credit is generally denied again unless Form 8862 is attached to the return ([Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867)). Ask for the IRS letter so you can see why.

## Sources

- [Instructions for Form 8867 (Rev. 11/2025)](https://www.irs.gov/instructions/i8867): When Form 8867 is required, examples of residency and income proof, the five records kept for 3 years, Form 8862, and the $650 penalty per failure for returns filed in 2026.
- [Rev. Proc. 2025-32, 2026 inflation adjustments](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf): The section 6695(g) due diligence penalty is $665 per failure for returns filed in 2027, and for 2026 the EIC is not allowed if investment income exceeds $12,200.
- [26 CFR 1.6695-2, Tax return preparer due diligence requirements](https://www.law.cornell.edu/cfr/text/26/1.6695-2): The completion, computation, knowledge and retention requirements, including the duty to make and document reasonable inquiries.
- [IRS Publication 596, Earned Income Credit](https://www.irs.gov/publications/p596): The age test for an EIC qualifying child; a taxpayer cannot be the qualifying child of another person; without a qualifying child the taxpayer must be at least 25 but under 65.
- [IRS, Child Tax Credit](https://www.irs.gov/credits-deductions/individuals/child-tax-credit): A qualifying child is under 17 at the end of the tax year and lived with the taxpayer more than half the year; Social Security numbers valid for employment are required.
- [IRS Publication 970, Tax Benefits for Education](https://www.irs.gov/publications/p970): AOTC eligibility: half-time enrollment, no felony drug conviction, and no more than four tax years per student.
- [IRS Publication 501, Dependents, Standard Deduction, and Filing Information](https://www.irs.gov/publications/p501): The head of household tests and when a married taxpayer is considered unmarried.

## More on this topic

- [Client tax organizer (individual return)](/tools/document-checklist/tax-organizer)
- [Client tax questionnaire](/templates/tax-organizers/tax-questionnaire)

## About the author

Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. [Arthur Teboul](/authors/arthur-teboul).

How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? [Contact us](/contact).

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