August 8, 2018
The Tax Cuts and Jobs Act expanded the preparer due diligence requirements to include the Head of Household filing status and the new credit for other dependents beginning with 2018 individual returns.
Recently the IRS released a draft of the 2018 Form 8867 (Paid Preparer’s Due Diligence Checklist) which included the changes needed for this expansion as follows:
For more details on what these changes are see the draft of the 2018 Form 8867 on the IRS website.
Also, be aware 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.
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