Completing Form 8867 Paid Preparer's Due Diligence Checklist in Lacerte

Below, you'll find information about entering Form 8867, Paid Preparer's Due Diligence Checklist, in Lacerte.

When Form 8867 is required, Lacerte will generate the Paid Preparer's Due Diligence Checklist as though all requirements have been completed. By default, any return with the form will also generate a critical diagnostic reminding you to go to Screen 77.2, Paid Preparer's Due Diligence Checklist (8867) and make sure that the form is correct by checking the box labeled Due diligence requirements have been completed.

Because the IRS mandates filing this form with all returns claiming EIC, or Earned Income Credit, the program automatically generates the form and will print it when the tax return is printed in full.  Per the form instructions on page 1:

Note:  This form will not generate if Non-Paid Preparer or Self-Prepared is chosen in Screen 1, Client Information, in the field Prepared By.

To turn the due diligence reminder off:

1. Open Lacerte to the Individual module. 
2. From the Settings menu, select Options.
   • You may also press Ctrl + O on your keyboard. 
3. Select the Tax Return tab.
4. Under the Federal Tax Options section, set the Due Diligence Reminder to No.

You can make additional entries on Screen 77.2. Lacerte will only complete the parts of this form that are required based on the boxes checked at the top of the form for certain credits or HOH filings.