Apply the preparer's accuracy and record-retention obligations, including the EITC due diligence requirements of Form 8867 and the records a preparer must keep.

Which statement correctly describes the scope of the paid-preparer due diligence requirements that Form 8867 documents?

• AThey apply to the earned income credit, the child tax credit with the additional child tax credit and the credit for other dependents, the American opportunity credit, and head of household filing status.check_circle Correct
• BThey apply to the earned income credit alone, so a preparer claiming the child tax credit or the American opportunity credit has no due diligence duty to record under the rules.
• CThey apply to every refundable credit a preparer claims on a return, including the premium tax credit and the recovery rebate amounts, because each one carries a risk of an improper refund.
• DThey apply to the child tax credit and the American opportunity credit, but head of household status is a filing choice rather than a credit and so falls outside the documented duty.

Why A is correct: Form 8867 due diligence covers exactly these four credits and the head of household filing status, so this correctly states the full scope of the requirement.

Why B is wrong: The earned income credit was the original focus, which makes this tempting, but the duty now extends well beyond it, so limiting Form 8867 to that one credit understates the rule and is wrong.

Why C is wrong: Refund risk does run across many credits, but the due diligence rule is limited to a named set and does not reach the premium tax credit or rebate amounts, so casting it over all refundable credits is incorrect.

Why D is wrong: Head of household is indeed a filing status rather than a credit, which makes the exclusion sound logical, but the rule expressly brings that status within the duty, so leaving it out is wrong.