The Internal Revenue Service issued proposed regulations Thursday that would require tax preparers to file a due diligence checklist with any federal tax return claiming the Earned Income Tax Credit, starting next year.

The IRS has created Form 8867, “Paid Preparer's Earned Income Credit Checklist,” to help preparers meet the new requirement by obtaining eligibility information from their clients. It is the same form that is currently required to be completed and retained in a preparer’s records, but under the proposed requirements, the form would need to be filed with the IRS accompanying the tax return. The due diligence requirement was enacted by Congress over a decade ago in an effort to reduce errors on returns claiming the EITC, most of which are prepared by tax professionals.

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