How to document due diligence for each engagement: earned income credit, child tax credit, head of household, education credits, and general preparer responsibilities.
Determine which due-diligence requirements apply to each return: EIC (Form 8867), child tax credit, additional child tax credit, head of household, American Opportunity Credit, and Lifetime Learning Credit.
For each applicable credit or filing status, ask the questions required by the regulations. Record the taxpayer's answers and the documents provided as support.
Complete Form 8867 or equivalent internal documentation. Record the questions asked, the answers received, the documents reviewed, and the preparer's conclusion.
Keep all due-diligence worksheets, client responses, and supporting documents for the required retention period (minimum 3 years from the return due date).
Before the return is filed, confirm that all applicable due-diligence requirements have been met, all forms are complete, and all supporting documentation is in the file.
SOLO includes the templates, checklists, logs, and SOPs to execute this workflow consistently across every engagement.