Tax Preparer Due Diligence Audits: Avoiding and Preparing for IRS Examinations, Acting on Letters 5025, 4858, 5364
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This webinar will explain steps tax preparers can take to ensure they meet the IRS' due diligence requirements for claiming taxpayer credits and benefits, including the American Opportunity Tax Credit, Earned Income Credit, Child Tax Credit, and Head of Household Filing status. Our panel of IRS examination experts will discuss how and when to respond to IRS letters, completing Form 8867, Paid Preparer's Due Diligence Checklist, required documentation and retention, and how to handle an IRS due diligence examination.
Outline
- Due diligence audits: background
- Due diligence compliance areas
- Earned Income Tax Credit (EITC)
- American Opportunity Tax Credit (AOTC)
- Child Tax Credit (CTC)
- Additional Child Tax Credit (ACTC)
- Credit for Other Dependents (ODC)
- Head of Household
- Due diligence requirements under IRC Sections 6695(g) and 1.6695-2(b)
- Form 8867, Paid Preparer's Due Diligence Checklist
- Documenting inquiries and record retention
- IRS Letters
- Letter 5025
- Letter 4858
- Letter 5364
- Penalties and sanctions
- Due diligence audit process
- IRS Publication 4687, Paid Preparer Due Diligence
- Best practices
Benefits
The panel will review these and other critical issues:
- What steps should a tax practitioner take when Letter 5025 or 4858 is received?
- How does a tax professional document compliance with Section 6695(g) and the related regulations?
- What specifically needs to be done to ensure the due diligence requirements for the earned income credit are met?
- What should tax advisers do now to prepare for a potential due diligence examination?
Faculty

Josie Harris-Walton
Owner & Managing Partner
The Walton Firm
Ms. Harris-Walton brings her many years of corporate and tax law experience from practicing with non-profits to... | Read More
Ms. Harris-Walton brings her many years of corporate and tax law experience from practicing with non-profits to big firms, as well as her calm and poise to every client’s corporate and tax law solutions.
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Melinda Tolbert, EA
President and CEO
MJ Tolbert Tax Audit Group
Ms. Tolbert, who specializes in taxation, has been a successful tax practitioner for over sixteen years and recently... | Read More
Ms. Tolbert, who specializes in taxation, has been a successful tax practitioner for over sixteen years and recently earned the highest credential the Internal Revenue Service awards. Enrolled Agents are federally authorized to represent taxpayers before the IRS and, like CPAs and Attorneys, have unlimited representation rights.
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