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2018 Changes to Form 8867 (Preparer Due Diligence Checklist)

November 9, 2018


This is a reminder that the Tax Cuts and Jobs Act added the Head of Household filing status and the new credit for other dependents to the preparer due diligence requirements.

Therefore the 2018 Form 8867 (Preparer Due Diligence Checklist) has been revised as follows:

  • New checkbox for the head of household filing status has been added to Part I (Questions related to all credits and head of household filing status).
  • The new credit for other dependents falls under the due diligence requirements for the child tax credit and therefore has been added as part of the child tax credit checkbox on Part I and Part III.
  • New Section V has been added which includes a new question for the head of household filing status.
  • Part III questions (related to the child tax credit/additional child tax credit/credit for other dependents) have been rewritten in order to clarify what due diligence requirements that must be met for residing in US, living with the child and children of divorced or separated parents.

For more details on what these changes are see the draft of the 2018 Form 8867  and the instructions on the IRS website.

It is also important to note that the Section 6695 penalty amount for failure to comply with the preparer due diligence requirements has been increased to $520 for each of the applicable credits and the head of household filing status for 2018 returns. This could result in a $2,080 penalty per return if all the applicable credits are claimed, the head of household filing status is used and the IRS determines that the preparer did not follow their due diligence requirements.

Recent Tax Updates

Important Reminders for the Upcoming 2019 Filing Season
November 28, 2018

2018 Changes to Form 8867 (Preparer Due Diligence Checklist)
November 9, 2018

2018 Depreciation Changes
October 18, 2018

2018 Tax Law Changes that are Directly Reported on Form 1040
October 3, 2018

IRS Tax Transcripts Changes
September 27, 2018

Revised 2018 Schedule A due to Tax Cuts and Jobs Act Changes to Itemized Deductions
August 29, 2018

Additional Updates
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PUTTING CUSTOMERS FIRST SINCE 1974
PUTTING CUSTOMERS FIRST SINCE 1974