What is Form 8867?
Paid Preparer's Due Diligence Checklist
Short answer
Form 8867 is the due diligence checklist a paid preparer completes when a return claims the EITC, child or dependent credits, the AOTC or head of household.
What it is
Form 8867 (Paid Preparer's Due Diligence Checklist) documents that the preparer asked the right questions, kept the client's answers and the documents relied on, and computed the credit correctly. It is required for returns claiming the earned income credit, the child tax credit and credit for other dependents, the American opportunity credit, or head of household filing status.
The form travels with the return. The preparer must also keep the worksheets, the record of questions asked and answers given, and copies of the documents used, for three years.
Why it matters for a tax firm
Each credit or status missed on the checklist carries its own penalty, indexed every year, and the IRS audits preparers on it. The practical problem is proof: the questions were often asked, but nothing shows when or what the client said.
How XyloDocs handles it
Client messages in XyloDocs are kept with the client file, with both languages when a conversation was translated, so the questions and answers behind a credit have a dated record.
Related terms
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Sources
Questions about Form 8867
When is Form 8867 required?
Whenever a paid preparer prepares a return or claim for refund that claims the EITC, the CTC, ACTC or ODC, the AOTC, or head of household status.
What records support the checklist?
A copy of the completed form, the computation worksheets, a record of how and when the information was obtained, and copies of any client documents the preparer relied on. Keep them three years.
Last reviewed: October 16, 2026. This glossary explains terms; it is not legal or tax advice. Check the cited source for the current rule.
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