In today’s tax environment, speed matters—but accuracy matters more.

That’s exactly why more tax professionals and business owners are keeping a due diligence checklist for individual credits right on their desktop. It’s not just a helpful reference—it’s becoming an essential daily tool.

The Stakes Have Never Been Higher

Congress and the IRS continue to tighten enforcement around refundable credits such as the earned income tax credit (EITC), alternative fuel vehicle refueling property credit, American opportunity tax credit, and others. Preparers are required to meet strict due diligence standards under IRC Section 6695(g),1 including completing Form 8867 and maintaining proper documentation.2

Miss a step? The consequences can include

costly penalties,

increased audit exposure, and

damage to your professional reputation.

This checklist exists to prevent exactly that.

Why Professionals Want It Within Arm’s Reach

1. Instant Clarity in Complex Situations

Tax credit rules are layered and nuanced. Whether you’re verifying residency for EITC or determining qualified expenses for education credits, the checklist breaks each credit into clear, actionable steps.

Instead of second-guessing, you can confirm requirements in seconds.

2. Built-In Compliance Confidence

The checklist is designed specifically around IRS due diligence expectations—covering what to ask, what to verify, and what to document for each credit.

That means you’re not just preparing returns—you’re protecting yourself.

3. Faster Workflow without Cutting Corners

When you’re in the middle of a return, stopping to research rules kills momentum. Having this on your desktop eliminates that friction, so you stay efficient and thorough.

4. Consistency across Every Return

Even experienced pros can overlook details during busy season. This checklist ensures every client file meets the same high standard—no matter how hectic things get.

5. A Training Tool for Teams

For firms with staff, this isn’t just a reference—it’s a teaching tool. New preparers can follow structured steps for each credit, reducing errors and improving confidence from Day One.

Why Business Owners Benefit Too

This isn’t just for tax preparers.

Business owners and self-preparers gain

a clearer understanding of what qualifies (and what doesn’t),

better documentation habits, and

reduced risk of claiming credits incorrectly.

In short, it helps business owners ask smarter questions—and avoid expensive mistakes.

What Makes This Checklist Different

Unlike generic summaries, this checklist

covers individual credits subject to due diligence in one place,

aligns with current IRS rules and documentation expectations,

breaks down each credit into specific verification steps, and

emphasizes record retention and audit readiness.

It’s not theory—it’s practical, real-world guidance you can use mid-return.

The Bottom Line

Tax preparation today isn’t just about getting the numbers right—it’s about proving you got them right.

That’s why the smartest professionals aren’t relying on memory alone. They’re keeping this due diligence checklist open, visible, and ready—because when every return carries risk, having a trusted guide within reach isn’t optional.

It’s essential.

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