8867 Due Diligence Aid

[ChrisR]

I would love a copy as well.

Thank you! chris@modestotaxes.com

[LAPCPA]

8867

I would like a copy including the word document. Thanks so much for offering to send us all a copy. Always good to work together!

Lorraine
taxes@cpataxcenter.com

[drtaxprep]

Please send copy to dreinhardt5907@gmail.com, greatly appreciated!! Thank you

[janea]

8867 Due Diligence Aid

Please send one to me, too.

janicerterry@yahoo.com

[tax_girl]

Due Diligence Aid

Please email me a copy @ sandy_mcdowell@yahoo.com

[rkhan71]

8867 and aid

I will take it if you do not mind.

rkhan_71@yahoo.com

[ATB]

Due Diligence Aid

We came up with a due diligence aid / (client questionnaire) that compiled some info I found on various forums and what we felt was good for us and our clientele. If anyone is interested in the pdf file, just pm me your email and I will send a copy to you. This is by no means an end all form, but an aid. Feel free to PM me any comments. I also have it in MSWord format if one would like to make changes to it to conform to their practice. Have a great day. Oh yeah, bear with me, I will try to check PM's daily. But it may be every other day or so. Have a great season.

I would really like to copy of your aid if you do not mind (PDF format).

Anthony Bennett
Bennett.AnthonyT@gmail.com

[Ringers]

I would also appreciate a copy. Thank you

Johnhynek@comcast.net

Thank you for taking the time!!!

[Art]

We came up with a due diligence aid / (client questionnaire) that compiled some info I found on various forums and what we felt was good for us and our clientele. If anyone is interested in the pdf file, just pm me your email and I will send a copy to you. This is by no means an end all form, but an aid. Feel free to PM me any comments. I also have it in MSWord format if one would like to make changes to it to conform to their practice. Have a great day. Oh yeah, bear with me, I will try to check PM's daily. But it may be every other day or so. Have a great season.

I would like the version in WORD.
Thanks,
Art
apontow@gmail.com

[RaemiDenee]

We came up with a due diligence aid / (client questionnaire) that compiled some info I found on various forums and what we felt was good for us and our clientele. If anyone is interested in the pdf file, just pm me your email and I will send a copy to you. This is by no means an end all form, but an aid. Feel free to PM me any comments. I also have it in MSWord format if one would like to make changes to it to conform to their practice. Have a great day. Oh yeah, bear with me, I will try to check PM's daily. But it may be every other day or so. Have a great season.

I'd be grateful for a copy of the questionnaire

raemi@raemibkpg.com

THANK YOU!

[joeljj]

We came up with a due diligence aid / (client questionnaire) that compiled some info I found on various forums and what we felt was good for us and our clientele. If anyone is interested in the pdf file, just pm me your email and I will send a copy to you. This is by no means an end all form, but an aid. Feel free to PM me any comments. I also have it in MSWord format if one would like to make changes to it to conform to their practice. Have a great day. Oh yeah, bear with me, I will try to check PM's daily. But it may be every other day or so. Have a great season.

Would much appreciate a copy of the Due Diligence Aid. Thank you! joeljj53@msn.com

[mactoolsix]

In an effort to give this question a bump up in hopes of others chiming in for you:

I do have a question on how other preparers are handling question 3, a and b and question 5

Question 3 to me is wide open to interpretation. Example, I can see answering yes to 3 (which a and b have to be yes too to do so) for new clients.

Now for prior clients, ones you have known for years, do you grill them and document the answers ? Or just answer "no" on line 3 and move on ? If you answer "no" on line 3, did you meet your "due diligence" ? Is your butt in trouble ? Our repeat clients a lot of times just drop off their stuff and living in a small community, we know them personally. Is a signed and dated "questionnaire" Like the one posted good enough to meet the "knowledge requirement" ?

This was discussed in a recent Spidell webinar.
For a new client, yes you'll need some sort of documentation to satisfy any concerns you might have.
For prior well known clients, provided you have prior years documents saved, the same documentation is probably not required.

Note from the instructions:
You must make reasonable inquiries if a reasonable and well-informed tax return preparer,
knowledgeable in the tax law, would conclude that the information provided to you appears to be incorrect, inconsistent, or incomplete.

I would not answer "no" to either without expecting an IRS inquiry.
The "signed and dated questionnaire" is good enough only if you feel there are no possibilities of incorrect, inconsistent or incomplete information.

Question 5 That's another tricky one. We scan all documents given to us. Now does a 1099T and college bursar statement fall in this category ? Or a W2 for a EIC client with no kids ? Should we as preparers check yes to 5 all the time because, well we get a lot of client documents ? Or check no because those are documents you always get !! Do you check yes to 5 only when you "question" the credit and rely on a document that "proves" the credit. Will checking "No" mean you did not meet your "due diligence"

If you read the instructions for 3 and 5 they are pretty vague and open to interpretation. And the questions themselves the same. All others are pretty much straight forward.

Line 5 seems pretty straight forward - keep copies of documents you relied on to determine the taxpayer qualifies for each. So, yes - keep a copy of the 1098-T, the W2 and any other documents the client provides. Again, I would never check either box "no." Why would you think saying "no, I didn't satisfy the record retention requirement" would be okay?

Hope that stirs up a few more responses for you,
Mike

[Twin Turbo Z]

In an effort to give this question a bump up in hopes of others chiming in for you:



This was discussed in a recent Spidell webinar.
For a new client, yes you'll need some sort of documentation to satisfy any concerns you might have.
For prior well known clients, provided you have prior years documents saved, the same documentation is probably not required.

Note from the instructions:
You must make reasonable inquiries if a reasonable and well-informed tax return preparer,
knowledgeable in the tax law, would conclude that the information provided to you appears to be incorrect, inconsistent, or incomplete.

I would not answer "no" to either without expecting an IRS inquiry.
The "signed and dated questionnaire" is good enough only if you feel there are no possibilities of incorrect, inconsistent or incomplete information.




Line 5 seems pretty straight forward - keep copies of documents you relied on to determine the taxpayer qualifies for each. So, yes - keep a copy of the 1098-T, the W2 and any other documents the client provides. Again, I would never check either box "no." Why would you think saying "no, I didn't satisfy the record retention requirement" would be okay?

Hope that stirs up a few more responses for you,
Mike

Thanks for the input

I did contact the IRS Law Dept. via the Practitioner Priority Hotline last week. We discussed question 3 and 5 at length and how they are similar and somewhat intertwined. Long story short the Reps. and I came to the same conclusion. 3a & 3b is the interview and documenting phase via questionnaire and/or conversation to determine eligibility. Also in 3b is the fact you , via financial documents (W2's, etc.) determined the amount of credit. Question 5 is to verify your keeping copies of line 3 question and answers. You do not list documents from line 3a & 3b. But do list documents such as, Court Documents, School Records, Social Services Documents you may have relied on to determine eligibility of say an adopted child or foster child or temporary custody of a child relative. So line 5 document lines will be blank many times. But checking yes to 3, 3a and 3b and 5 is a "no brainer" as long as you did your "due diligence"

[nwtaxlady]

Would really appreciate a copy. Thank you

rob@bankstax.com

[Super Mom]

I appreciate you taking your time to help us with these ridiculous new requirements!!! I would love a copy stancil.cb@rtmc.net. Thank you so much for your time!! Have a great day!!