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You must keep those records for three years from the latest of

Eligible educational institution. An eligible educational institution

the following dates.

is a school offering higher education beyond high school. It is any

The due date of the tax return (not including extensions).

college, university, vocational school, or other postsecondary

The date the return was filed (if you are a signing tax return

educational institution eligible to participate in a student aid program

preparer electronically filing the return).

run by the U.S. Department of Education. This term includes most,

The date the return was presented to the taxpayer for signature (if

but not all, accredited public, nonprofit and privately-owned–

you are a signing tax return preparer not electronically filing the

for-profit postsecondary institutions and some foreign institutions.

return).

Eligibility information should be available from the school. More

The date you submitted to the signing tax return preparer the part

information, including a link to the list of most eligible schools, is

of the return for which you were responsible (if you are a nonsigning

available at

tax return preparer).

Form 1098-T. Unless an exception to reporting applies, a student

These records may be kept on paper or electronically in the

enrolled or attending an eligible educational institution should

manner described in Revenue Procedure 97-22 (or later update).

receive a Form 1098-T from the institution. In 2016, Form 1098-T

Revenue Procedure 97-22 is on page 9 of Internal Revenue Bulletin

reports the amount billed by the institution, or the amount the

1997-13, which is available at

student paid to the institution, for qualified tuition and related

Additional Resources

expenses during the calendar year, as well as certain refunds and

reimbursements and scholarships and grants processed and

administered by the school. A student may claim the AOTC only for

1. Additional information regarding the eligibility rules for the

qualified tuition and related expenses actually paid during the

EIC may be found in section 32 and in Pub. 596.

calendar year. The student may not be able to claim a credit for the

2. Additional information regarding the eligibility rules for the

exact amount reported as paid or billed on Form 1098-T. For more

CTC/ACTC may be found in section 24 and in Pub. 972.

information on eligibility for the AOTC and on determining the

3. Additional information regarding the eligibility rules for the

expenses that qualify for the AOTC, see Pub. 970, Form 8863, and

AOTC may be found in section 25A, in Pub. 970, and on Form 8863

the instructions for Form 8863.

and the instructions for Form 8863.

Credit Eligibility Certification

Paperwork Reduction Act Notice. We ask for you to obtain the

information on this form to carry out the Internal Revenue laws of the

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United States. You are required to obtain this information.

Failure to meet the due diligence requirements for claiming the EIC,

You are not required to obtain the information requested on a

the CTC/ACTC or the AOTC could result in a $510 penalty for each

form that is subject to the Paperwork Reduction Act unless the form

failure. For example, if you are paid to prepare a return claiming the

displays a valid OMB control number. Books or records relating to a

EIC, the CTC/ACTC, and the AOTC, and you fail to meet the due

form or its instructions must be retained as long as their contents

diligence requirements for all of these credits, you could be subject

may become material in the administration of any Internal Revenue

to a penalty of $1,530.

law. Generally, tax returns and return information are confidential, as

required by Internal Revenue Code section 6103.

Document Retention

The time needed to complete and file this form will vary

To meet the due diligence requirements for the EIC, the CTC/ACTC

depending on individual circumstances. The estimated average time

and the AOTC, you must keep all of the following records.

is:

1. A copy of Form 8867;

Learning about the law or the form

18 min.

2. The applicable worksheet(s) or your own worksheet(s) for

. . . . . . .

any credits claimed specified in

Due Diligence

Requirements,

Preparing and sending the form

1 hr., 49 min.

. . . . . . . . .

earlier;

3. Copies of any documents provided by the taxpayer on which

you relied to determine eligibility for, and the amount of, the credit(s);

If you have comments concerning the accuracy of these time

4. A record of how, when, and from whom the information used

estimates or suggestions for making this form simpler, we would be

to prepare Form 8867 and the worksheet(s) was obtained; and

happy to hear from you. See the instructions for the tax return with

which this form is filed.

5. A record of any additional questions you may have asked to

determine eligibility for, and the amount of, the credits, and the

taxpayer’s answers.

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Instructions For Form 8867 - Paid Preparer'S Due Diligence Checklist For The Earned Income Credit (Eic), The Child Tax Credit (Ctc)/additional Child Tax Credit (Actc), And/or The American Opportunity Tax Credit (Aotc) - 2016 Page 4

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