Onboarding For 2027

Tax Preparer Due Diligence Compliance Agreement

Purpose: This document outlines the due diligence requirements that all tax preparers at Kingdom Way Tax Service must follow in accordance with IRS regulations. Adhering to these requirements ensure compliance, protects clients, and prevents fraudulent tax filings. Failure to comply with these due diligence standards will result in immediate termination without compensation and may lead to legal action if necessary.

Due Diligence Requirements: As a tax preparer, you are legally required to meet IRS due diligence obligations when preparing tax returns that claims:

Earned Income Tax Credit (EITC)

Child Tax Credit (CTC) / Additional Child Tax Credit (ACTC)

Credit for Other Dependents (ODC)

American Opportunity Tax Credit (AOTC)

Head of Household (HOH) Filing Status

These requirements are outlined in IRC § 6695(g) and apply to both in-person and virtual tax preparers.

A. Knowledge Requirement- Review all client-provided documents (W-2s, 1099s, proof of dependents, etc.). Ask reasonable and relevant questions and document answers, if any information seems incorrect, incomplete, or inconsistent. Do not accept client statements at face value, obtain proper documentation when necessary.

B. Document Retention- Any supporting documents provided by the client (such as proof of residency, school enrollment for AOTC, etc. must be in client file. A record of inquiries made to the client, along with their responses. These files must be submitted to our office upon completion and are required for pay.

C. Use of IRS-Approved Forms - Complete Form 8867 (Paid Preparer’s Due Diligence Checklist), bank documents for each applicable return. Ensure all tax returns are accurate and truthful before submission.

D. Compliance with IRS Regulations - Never inflate deductions, falsify income, or claim unqualified dependents to increase a refund. Never encourage clients to provide misleading information or submit fraudulent claims. Follow all IRS Circular 230 guidelines regarding ethical tax preparation.

Acknowledgment & Agreement

I, acknowledge that I have read and understand the due diligence

requirements set forth by the IRS and Kingdom Way Tax Service. I agree to comply with these requirements at all times. I understand that Failure to follow these due diligence standards will result in immediate termination without pay and possible legal action. Any fraudulent, negligent,

or unethical behavior may result in legal action taken against me. I am responsible for ensuring all tax returns I prepare are accurate, compliant and properly documented. By signing below, I agree to uphold these standards and accept the consequences of non-compliance.