BarbriSFCourseDetails
  • videocam Live Online with Live Q&A
  • calendar_month October 24, 2025 @ 1:00 p.m. ET./10:00 a.m. PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Satisfying Due Diligence Requirements for Tax Returns: Form 8867, Circular 230, IRS Inquiries and Audits

$197.00

This course is $0 with these passes:

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Description

Tax practitioners are obligated to exercise due diligence in the preparation of tax returns. In Circular 230, Section 10.22, Due diligence as to accuracy includes:

(a) In general. A practitioner must exercise due diligence—

(1) In preparing or assisting in the preparation of, approving, and filing tax returns, documents, affidavits, and other papers relating to Internal Revenue Service matters;

(2) In determining the correctness of oral or written representations made by the practitioner to the Department of the Treasury; and

(3) In determining the correctness of oral or written representations made by the practitioner to clients with reference to any matter administered by the Internal Revenue Service.

Although there are no clearly defined rules for satisfying due diligence requirements, some requirements are precise. Form 8867, Paid Preparer's Due Diligence Checklist, must be completed, filed with a tax return, and retained for any return that contains an earned income credit, child tax credit, or the American Opportunity Tax Credit. Interviewing a client and properly completing the form creates additional burdens and costs for both taxpayers and return preparers.

Also clear are the penalties and sanctions that the IRS can assess for noncompliance. The penalty, indexed for inflation, is $635 per failure in 2025. Since penalties are assessed "per failure," multiple penalties can be imposed on the same tax return. Employers of preparers can also be penalized for failing to conduct proper due diligence.

Equally frustrating for practitioners can be the receipt of IRS Letter 4858, 'You May Not Have Met Your Due Diligence Requirements,' when they have taken ardent steps to fulfill the requirements. Tax practitioners must understand how to meet due diligence requirements and respond effectively to IRS inquiries regarding due diligence.

Listen as our panel of seasoned tax professionals outlines best practices for meeting IRS due diligence requirements for the preparation of tax returns.

Presented By

Larry Pon
CPA/PFS, CFP, EA, USTCP, AEP
Pon & Associates, CPA

Mr. Pon has been in practice since 1986 providing comprehensive accounting, tax, payroll, and business advisory services. He specializes in tax preparation, tax representation, tax planning, business planning, financial planning, and estate planning. Services include IRS and state audit representation, business startup services, and charitable planning. Mr. Pon is a frequent author and lecturer to financial and legal professionals and the public on tax and financial planning topics.

Credit Information
  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Date + Time

  • event

    Friday, October 24, 2025

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

I. Due diligence: introduction

II. Recordkeeping

III. Form 8867, Paid Preparer's Due Diligence Checklist

IV. Internal procedures

V. Common IRS Letters

VI. Due diligence inquiries and audits

A. IRS Letters concerning due diligence

B. IRS due diligence audits

VIII. Best practices

The panel will cover these and other critical issues:

  • Internal processes that should be in place to meet due diligence requirements
  • Completing Form 8867 and interviewing clients
  • Penalties and sanctions that could be assessed for failing to exercise due diligence
  • Responses to IRS Letters concerning lack of due diligence

Learning Objectives

After completing this course, you will be able to:

  • Identify sanctions that could be imposed for failing to meet due diligence guidelines
  • Determine recordkeeping requirements for Form 8867
  • Decide what procedures tax practitioners should have in place to comply with due diligence requirements
  • Ascertain proper actions to take after receipt of IRS due diligence letter
  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

BARBRI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Strafford-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .