One of the most important things on the IRS competency exam is your use as a tax preparer of the Earned Income Credit. So, I want to lead you guys through the Form 8867, which is the paid preparers or an income credit checklist. Basically, this is the form that you're supposed to fill out every time you claim the Earned Income Credit related to certain cases. In most cases, you have to fill this out and attach it to the tax return. Okay, so you can see here that this is the taxpayer's name and social security number. So, you're verifying this taxpayer's eligibility to receive their Earned Income Credit. Look here on the front of the form where it actually has the preparer's name and PTIN on the 8867. That's a major factor as a preparer. IRS statistics show that up to 40 percent of audits are related to earned income credit. So, the IRS is really looking to find out which preparers are submitting the most earned income credits that don't actually meet the criteria. Okay, so important thing to realize right there as a tax preparer. You have to identify this is the taxpayer's filing status. And married filing separately, remember with earned income credit, you cannot file married filing separately. Does the taxpayer have a social security number? So, I see is only with the social security number for the taxpayer and also the qualifying child. Okay, so the dependent basically. Also, on this form 2555, it's for foreign income. You can't actually claim the EIC if you are living abroad. That's kind of what that's getting at on that line. Non-resident alien, also same idea. If you're not living in the U.S., you're not really eligible for an income credit for that year. Married filing jointly, these...
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8867 Form: What You Should Know
Paid Preparer's Due Diligence Checklist is completed and filed with forms 1040, 1040A, 1040EZ, 1040NR, 1040SS, 1040PR. The IRS will continue to provide updated instructions to taxpayers on how to file their filed taxes. IRS 8867 Form with The form number, which is the number used in Forms 1040, 1040A, 1040B, 1040C, 1040RR, and 1040RR-R. When used on IRS Forms 1040, 1040A, 1040B, 1040C, 1040RR, and 1040RR-R, the form number will be “A” or “B”. IRS 8867 Form with the “A” or “B” number on its form in the place of “A” or “B”—form 1040-NR (or 1040-RR) or in the place of “RR,” “RR-R” or “SS.” The form number, which is the number used in Forms 1040, 1040A, 1040B, 1040C, 1040RR, and 1040RR-R. When used on IRS Forms 1040, 1040A, 1040B, 1040C, 1040RR, and 1040RR-R, the form number will be “A” or “B” and will not appear next to the EIC line number on the income tax return. When used on IRS Forms 1040, 1040A, 1040B, 1040C, 1040RR, and 1040RR-R, the form number will be, “A” or “B” on the second line following the EIC number on the income tax return. Forms 1040-NR and 1040-RR. The Forms 1040-NR and 1040-RR are used if the taxpayer is filing both the 1040EZ and 1040NR form. Form 1040–NR or Form 1040–RR.
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