Have I complied with all the due diligence requirements?

In order to comply with your due diligence requirements as a paid preparer, you must:

• Complete Form 8867 truthfully and accurately, and complete the actions described in the checklist for all credits claimed and/or Head of Household filing status.
• Submit Form 8867 with the return.
• Interview the taxpayer, ask adequate questions, document the taxpayer's responses on the return or in your notes, review adequate information to determine if the taxpayer is eligible to claim the credits and in what amounts.
• Keep all required records for 3 years from the latest of the dates specified in the Form 8867 instructions under document retention.

Note: If you do not comply with the due diligence requirements you may have to pay a $650 penalty for each credit for which you failed to comply.