PDF GUIDE FOR PAID TAX PREPARERS · 68 PAGES, 64 DRAWN
See what to ask—and what to record in the client's file.
An interview-to-file guide for tax year 2026 returns filed in 2027. Practice what to ask, when to follow up, and what to record alongside your software.
Explore a topic, then tap a page to read it up close. Each page links a drawn situation to a question, a follow-up trigger, and a sample note.
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Page 9 · I · Due Diligence
Know When to Ask More
Incorrect, inconsistent, or incomplete information triggers reasonable follow-up inquiries and documented answers.
Page 17 · II · Client Interview
Identify Who Supplied Each Answer
Document how, when, and from whom information was obtained.
Page 25 · III · EITC
Resolve Competing Claims for One Child
When both eligible parents claim, residence time controls first; equal time requires an AGI comparison.
Page 41 · V · AOTC
Match Payments to the Correct Period
The early-next-year window covers academic periods beginning in January, February, or March.
Page 49 · VI · Head of Household
Check the Special Rule for a Parent
A qualifying dependent parent need not live with you; verify dependency and more-than-half home costs separately.
Page 57 · VII · Follow-Up Notes
Write the Question and the Client's Answer
Follow-up inquiries and responses require contemporaneous documentation.
Page 65 · VIII · File Review
Practice File: Cash Income Without Organized Records
Fictional exercise: 20 appointments and 8 receipts require explanation, not an invented income total.
Swipe either way · Tap to enlarge · A sample of the book. Not the full PDF.
FIVE REASONS YOUR FILE BREAKS DOWN
The software checked yes. You still have to ask.
Five situations where a file breaks down—and the drawn page that walks you through each one. Pick a topic.
✕Without the guide
Your software saved a yes. But the file doesn't show what you asked or what the client said. Checking a box does not satisfy the knowledge requirement.
✓With the drawn page · Page 9
Page 9 connects the trigger—incorrect, inconsistent, or incomplete information—to reasonable follow-up inquiries and contemporaneous documentation. Each drawn page links the question to the note.
✕Without the guide
Up to six hundred and sixty-five dollars per failure for returns filed in 2027 (Rev. Proc. 2025-32). Four covered benefits—EITC, CTC/ACTC/ODC, AOTC, and Head of Household—can mean up to 2,660 dollars on one single return.
✓With the drawn page · Page 57
Page 57 shows how to document the follow-up question and the client's answer at the time you ask it. The guide helps you see what each requirement asks and record what you did—not a guarantee against penalties.
✕Without the guide
In a due diligence audit (Letter 6199 visit or 6222 correspondence), the IRS examiner requests a minimum of 25 client files. The IRS proposed penalties on over ninety percent of the preparers selected.
✓With the drawn page · Page 65
Page 65 walks through a practice file the way an examiner reads it: interview notes, follow-up record, document index, and retention dates. Build each file before the season starts.
✕Without the guide
AOTC now requires an SSN for the taxpayer (one on a joint return) and the student, starting with tax year 2026 returns. CTC and ACTC already require SSNs since tax year 2025. A child with an ITIN qualifies for ODC, not CTC.
✓With the drawn page · Page 41
Page 41 checks the 2026 AOTC SSN change alongside qualified expenses and payment periods. The bonus review cards keep every SSN and ITIN rule together by credit and tax year.
✕Without the guide
Your seasonal preparer documents each interview differently. The firm can be penalized for an employee's due diligence failure—same penalty, same audit letter.
✓With the drawn page · Page 17
Page 17 shows one consistent way to record who supplied each answer, when, and how. The guide gives the whole office the same interview-to-file routine and a shared reference for follow-up notes.
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These are 5 of the 64 drawn pages across 68 total: every section of the interview-to-file routine has its own.
THE SAME TOPIC. TWO WAYS TO STUDY.
The same topic, studied two ways.
The old way
The knowledge requirement as a regulation paragraph
×Read the rule as one long paragraph.
×Remember a broad instruction to ask more.
×Decide later what belongs in the note.
Rule summary—not a quotation: You can generally rely on information provided without independently verifying it. You cannot ignore information that appears incorrect, inconsistent, or incomplete. Make reasonable inquiries and document the questions and responses at the time. Source: Treasury Regulation § 1.6695-2.
The drawn way
See the answer that needs follow-up.
See the answer that needs follow-up.
Link the unclear fact to a question.
Use the example to structure your note.
DOES THIS FIT YOUR TAX DESK?
Three preparers who open this guide.
You prepare returns on your own
You already have tax software and filing-season experience. This guide focuses on the interview behind the entries: follow-up questions, client answers, and sample notes you can use to review your own documentation process.
02
You return each filing season
You want to review the workflow and keep tax year 2026 separate from the 2027 filing season.
You manage a small team's files
The firm can be penalized for any preparer's due diligence failure. You want the same interview routine and note structure across every desk, so a reviewer can follow any file without calling the preparer.
A CLEAR PATH
8 sections, 68 pages (64 drawn).
Follow eight sections from the four due diligence requirements to the final file check. Use the same routine throughout: identify the benefit, ask, clarify, document, and review.
Independent study material for tax year 2026, for paid preparers of U.S. federal individual income tax returns. Not affiliated with the IRS; not tax advice; no license, PTIN, AFSP, or continuing education credit is awarded.
01I. The Four Due Diligence RequirementsPage 5–12
Your Five-Step Interview-to-File Map
Which Benefits Trigger Form 8867?
Requirement One: Complete and Submit Form 8867
Requirement Two: Compute the Applicable Credits
Requirement Three: Know When to Ask More
Requirement Four: Retain the Required Records
Tax Year 2026 Is Filed in 2027
Check the Source Before Using the Rule
02II. The Client InterviewPage 13–20
Start With the Benefits Being Considered
Build the Household Roster
Put Living Arrangements on a Calendar
Ask What Changed During the Year
Identify Who Supplied Each Answer
Turn Labels Into Facts
Use Documents to Resolve a Specific Question
Mark Unresolved Facts Before Moving On
03III. EITCPage 21–28
Separate the Two EITC Paths
Connect Earned Income to Its Source
Check the Child's Relationship and Age
Count Where the Child Actually Lived
Resolve Competing Claims for One Child
Check EITC Identification Requirements
Review EITC Without a Qualifying Child
Check the Remaining EITC Gates
04IV. CTC, ACTC, and ODCPage 29–36
Keep Three Credits in Separate Lanes
Check the CTC Age Cutoff
Check Whether the Child Supported Themself
Trace a Claim Across Two Homes
Check CTC and ACTC SSNs Separately
Give ODC Its Own Identification Check
Explain Why ACTC Needs a Calculation
Reconcile the Dependent List With the Credit
05V. AOTCPage 37–44
Identify Who Can Claim the Student
Check Enrollment and the First Four Years
Count Earlier AOTC Claims
Separate Qualified Expenses From Other Costs
Match Payments to the Correct Period
Reconcile Scholarships With Education Expenses
Check the 2026 AOTC SSN Change
Review Form 1098-T and Remaining AOTC Conditions
06VI. Head of HouseholdPage 45–52
Test Head of Household Separately
Establish Marital Status at Year-End
Check the Considered-Unmarried Conditions
Identify the Qualifying Person
Check the Special Rule for a Parent
Sort the Costs of Keeping Up a Home
Calculate Who Paid More Than Half
Resolve a Child Release Without Losing the Filing-Status Analysis
07VII. Follow-Up Questions and Written NotesPage 53–60
Recognize a Contradiction Worth Following Up
Describe a Cash Business Before Reviewing Totals
Separate Receipts From Other Deposits
Question Expenses That Do Not Fit
Write the Question and the Client's Answer
Connect the Answer to the Tax Treatment
Record Documents You Actually Relied On
Pause When the Facts Remain Unresolved
08VIII. File Review and Record RetentionPage 61–68
Build a File Another Preparer Can Follow
Find the Correct Retention Starting Date
Keep Electronic Records Retrievable
Practice File: A Child in Two Homes
Practice File: Cash Income Without Organized Records
Practice File: Tuition and a Scholarship
Repair a Weak Note Without Rewriting History
Run the Four-Requirement Final Review
IMAGINE YOUR NEXT FILING SEASON
Walk into the interview ready.
This is how your next EITC client feels different with the guide open.
The client answers and you write down the follow-up question and their response right there.
A child has an ITIN instead of an SSN—you check the drawn page and separate CTC from ODC in one look.
Your newest hire follows the same routine and writes notes a reviewer can follow.
The 2027 season ends and each file already has the four requirements in order.
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Reviews
Reader experiences
Selected stories supplied for this product.
TOP 01RW
Robert W.
It turns the Form 8867 interview into a clear visual path. Following EITC, CTC/ACTC/ODC, AOTC and Head of Household question by question finally makes due diligence feel logical, not like a box to click.
TOP 02MB
Megan B.
Outstanding resource for entry-level preparers. Seeing the four due diligence requirements laid out graphically clears up what to ask, what to write down and what to keep.
TOP 03DS
Daniel S.
Cuts through IRS fog with clean, diagrammatic precision. The follow-up questions for answers that look incorrect, inconsistent or incomplete are exactly what I was missing.
TOP 04LC
Laura C.
I use this to onboard our seasonal tax staff every January. Interns see what each credit needs before they check the box, and their interview notes are much easier to follow.
TOP 05MG
Mark G.
Concise, accurate, and brilliantly drawn. You understand not just which box to check on Form 8867, but why the question behind it matters.
MONEY BACK30DAYS
Take 30 days to try it.
Use the guide as you organize your interview questions and client notes. If it doesn't help you structure your documentation, tell us what didn't work and we'll refund 100% of your purchase.
It is a PDF book with two companion PDF books, sent by email. No printed books are shipped. You can print them in US Letter size.
Can I read it on my phone?
Yes. You can read the PDFs on a phone, tablet, or computer. Zoom in to read a note or study a drawing.
Will it help if I'm new to Form 8867?
The routine is explained step by step. You still need basic federal tax preparation knowledge and training to apply the rules.
How do I receive the material?
The book and both companion books are sent as PDFs by email to the address you enter at checkout.
Is this a one-time payment?
Yes. This pack is a one-time purchase, not a subscription.
Is this an official IRS publication?
No. It is an independent educational reference. It is not affiliated with or endorsed by the IRS.
Does it replace training or professional judgment?
No. It does not replace training, supervised practice, current official instructions, or your professional judgment. It provides no license, continuing education credit, or guarantee of compliance.
Does it cover tax year 2026 or returns filed in 2026?
This guide focuses on tax year 2026 returns filed in 2027. Use it to organize interview questions, follow-up, and file notes. It is not a final tax year 2026 rules checklist: the cited Form 8867 instructions are revised November 2025. Source notes identify the tax year and revision date. Before using an eligibility rule or calculation for a client, check the applicable final IRS forms, instructions, and updates.
Why use this if I already have tax software?
It helps structure the conversation behind the entries: what to ask, when an answer needs follow-up, and what to record. It does not replace your software or credit calculations.
Does it include examples, and where do the rules come from?
Yes. It includes sample questions, notes, and practice files. Source links include IRS Form 8867 instructions and Treasury Regulation § 1.6695-2. Examples are educational; they do not determine a real client's eligibility.
What changed for tax year 2026 credits?
AOTC now requires an SSN for the taxpayer (one on a joint return) and the student, starting with tax year 2026. CTC and ACTC already require SSNs since tax year 2025. A child with an ITIN may qualify for the Other Dependent Credit (ODC), not CTC. The guide and the bonus review cards cover these changes by credit and tax year.
Can my team use this as a shared reference?
Yes. The guide gives every preparer the same interview-to-file routine: what to ask, when to follow up, and how to write the note. It helps a supervisor review another preparer's file and helps a new hire learn the documentation process without relying on verbal instructions.
YOUR NEXT STEP
The next time an answer needs a closer look, have a routine to follow.
Keep the question, the answer, and your reasoning together. Give each follow-up a clear place in the file.
