Due Diligence Questionnaire Instructions
You are being supplied with this questionnaire because you have claimed one of these credits in the past or you have indicated that you will be claiming one of them this year. The questionnaire is designed to assist us in qualifying you for some valuable refundable tax credits. While the questions may seem to be alittle intrusive at times, they are questions that we are required to ask under the Due Diligence Requirements of the new Tax Laws. Failure to follow due diligence requirements can result in penalties of approximately $560.00 or more per credit claimed on your tax return. Please complete them in as much detail as possible. Not all questions will apply to all taxpayers. If they do not apply to you please answer them as NA (not applicable) so that we will know that you read the question and didn't just missit.
Abbreviations used on the Questionnaire:
CTC = Child Tax Credit ACTC = Additional Child Tax Credit
EITC= Earned Income Tax Credit (Low Income Households) AOTC= American Opportunity Tax Credit (College Credit) ODC = Other Dependent Credit
FOR NEW and/or existing CLIENTS with Dependents: Please remember to submit copies of social security cards, and proof of residency (possibly birth certificates, school records or medical records showing the dependents name and YOUR address, as all these documents will be needed in the event of an audit, failure to provide such, if an audit was to occur, can result in loss of future refunds, and including but not limited to monetary penalties. FORTAXPAYERSCLAIMINGCOLLEGETAXCREDITS: caseremember to submitcopies of the Form 1098T that you received from the college AND/OR a copy of the Financial/Account statement from the college showing the Spring and/or Fall semester charges and payments. The Credit applies to all payments made in cash or via student loans to tuition, fees and related expenses. IT does NOT apply to Room and Board or travel expenses. (FAFSA Student Loan Records are acceptable)
FOR TAXPAYERS CLAIMING HEAD OF HOUSEHOLD FILING STATUS: It is important to complete both the dependent questions and the Household Expense worksheet on page 3. If you are divorced or legally separated (by the courts) please remember to include a copy of the divorce decree and/or separation agreement. [NOTE: If the divorce is NOT final or you and your spouse lived together AT ANY TIME in the last 6 months of the tax year, you CANNOT claim Head of Household filing status]
IF you have any questions about the questionnaire, please do not hesitate to ask us. We will be glad to assist you.