Due Diligence Questionnaire for Due Diligence Notes

IRS Due Diligence Compliance Interview Packet – Tax Year 2025 (Fillable PDF)

This comprehensive Due Diligence Interview & Documentation Packet is designed for tax preparers, EROs, and tax professionals who need to meet IRS compliance requirements with confidence and clarity for the 2025 tax year.

This all-in-one packet walks you step-by-step through required Head of Household, Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and self-employment due diligence interviews, ensuring proper documentation, audit-ready records, and reduced preparer penalty risk.

What’s Included:

• Filing Status Due Diligence Interview (HOH eligibility)
• EITC eligibility verification with qualifying child checks
• Child Tax Credit (CTC) due diligence questions
• Tiebreaker rule explanations and real-world examples
• Business income and expense documentation worksheets
• Household employee income verification section
• Record-retention and IRS penalty awareness guidance
• Clearly structured Yes/No checkboxes and write-in fields
• Professional, audit-defensible format

Who This Is For:

• Paid tax preparers
• Electronic Return Originators (EROs)
• Tax offices handling HOH, EITC, and dependent-based returns
• Preparers who want strong audit defense documentation
• New or experienced preparers needing a standardized process

Why This Packet Matters:

IRS penalties for due diligence failures can be hundreds of dollars per credit, per return. This packet helps you demonstrate reasonable care, document client representations, and protect your practice during IRS reviews, audits, or compliance visits.