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Module Three Assignment Guidelines and Rubric
ACC 330 Module Three Assignment Guidelines and Rubric
Overview
Due diligence is the responsibility of a paid tax preparer. The Internal Revenue Service (IRS) created Form 8867 Paid Preparer’s Due Diligence Checklist for paid tax preparers to certify, to the best of their knowledge, that the answers to the form questions are true, correct, and complete. Preparers are required to submit this form with every tax return they prepare that contains one of the following tax benefits. Failure to comply with these requirements may result in a monetary penalty for violation.
Per IRS guidelines, a paid tax return preparer can face potential consequences for not meeting the due diligence requirements listed on Form 8867. A firm employing a preparer can also be subject to consequences for an employee’s failure to follow these due diligence rules. You must meet specific due diligence requirements if you are paid to prepare a tax return or to claim a refund on any of these tax benefits:
- Earned Income Tax Credit (EITC)
- Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC)
- American Opportunity Tax Credit (AOTC)
- Head of household (HOH) filing status
Directions
Locate and read through Form 8867, Paid Preparer’s Due Diligence Checklist, found in the Supporting Materials section. You will be asked to specifically address items on the form and to expand on the expectations of the tax preparer in meeting the due diligence requirements outlined in Form 8867.
Specifically, you must address the following rubric criteria:
- Introduction
- Knowledge Requirement
- Document Retention Record Keeping Requirement
- Inquiry Level – Reasonable Inquiries
- Consequences
- Conclusion
What to Submit
Submit your short paper as a 3- to 5-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Use the Module Three Assignment Template. Sources should be cited according to APA style.
Supporting Materials
The following resources support your work on the project:
Resource: Form 8867:The purpose of Form 8867 is to ensure that the practitioner has considered all applicable eligibility criteria for certain tax credits for each return prepared, such as the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), American Opportunity Credit (AOTC) and/or head of household (HOH) filing status.
Website: IRS Earned Income Tax Credit & Other Refundable CreditsGo to this website and locate the Tax Preparer Toolkit tab at the top. Review the “Preparer Due Diligence” section found on the left. You may want to choose the hot topics area to find new forms or new opportunities for tax credits.
Website: Circular 230 Tax ProfessionalsReview Circular 230 to review ethics for tax professionals.
