Form 8867 Question 6

The 2016 Form 8867 question 6:

Did you ask the taxpayer whether he/she could provide documentation to substantiate eligibility for and the amount of the credit(s) claimed on the return?

What is the "documentation to substantiate eligibility for and the amount of the credit(s) claimed on the return" exactly referring to?

I think if you ask your clients to provide "documentation to substantiate eligibility for and the amount of the credit(s) claimed on the return", they would have no idea what you are asking for. So I am thinking we have to be more specific in the question.

Does the client qualify for the credit(s), and if you think he does, what documentation shows that he qualifies?

Does the client qualify for the credit(s), and if you think he does, what documentation shows that he qualifies?

I have copy of the social security cards of the whole family, copy of the birth certificate of the children, the tax information that they provide such as their Form W-2s, correspondence that shows the address of the children is the same as their address, etc.

Are these the "documentation" that the question is referring to?

Maybe they meet the requirement. If you read the documents the client provided, and if they satisfy you that the client qualifies for the credit(s), then the documents meet part of the due diligence requirement.
You can find the answers here: https://www.irs.gov/pub/irs-pdf/i8867.pdf under the "Purpose of Form" section.

Does the client qualify for the credit(s), and if you think he does, what documentation shows that he qualifies?

I have copy of the social security cards of the whole family, copy of the birth certificate of the children, the tax information that they provide such as their Form W-2s, correspondence that shows the address of the children is the same as their address, etc.

Are these the "documentation" that the question is referring to?

Copies of birth certificates? I've never asked for that. Library cards, yes.

Does anyone have a copy of a "best practices 8867 due dilligence" checklist so I don't have to reinvent the wheel?

Does the client qualify for the credit(s), and if you think he does, what documentation shows that he qualifies?

I have copy of the social security cards of the whole family, copy of the birth certificate of the children, the tax information that they provide such as their Form W-2s, correspondence that shows the address of the children is the same as their address, etc.

Are these the "documentation" that the question is referring to?

Copies of birth certificates? I've never asked for that. Library cards, yes.

I think that is what we need in order to confirm that the qualifying persons are really their own children. Is it right?

"best practices 8867 due dilligence" checklist

IRS has free CPE on the topic. It takes about a half hour and has some useful analysis of common scenarios. https://www.eitc.irs.gov/training/login/auth

Original post was about question #6, which does not require the preparer to actually review any particular documents (assuming you are otherwise reasonably sure about eligibility). According to the instructions, it's to help your clients "understand that the IRS may ask for underlying documentation."

I'm willing to answer 6 no. If I did ask the taxpayer I would answer yes. I don't always feel the need - I'm not going to ask most of my clients about documentation to support their son/daughter's child tax credit for instance.

Just did a client with 3 kids and AGI phased CTC/AcTC out. No 8867 required. Hope that also means no delay in refund.