The law demands tax preparers who complete returns claiming the Earned Income Tax Credit, Child Tax Credit, Additional Child Tax Credit, Credit for Other Dependents, American Opportunity Tax Credit, and Head of Household filing status to meet four due diligence requirements.
IRS Publication 4687, Paid Preparer Due Diligence, explains these requirements and can help tax preparers comply. The publication outlines the steps needed to determine client eligibility for these important tax benefits.