# Enrolled Agent Exam [Part 1] 97, Tax Return Preparer Due Diligence

Page: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-1-97-tax-return-preparer-due-diligence
Text version: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-1-97-tax-return-preparer-due-diligence.md
Podcast: [Finance Exam Prep](https://stenobird.com/podcast/finance-exam-prep-7658413)
Published: 2026-04-22T02:03:45+00:00
Episode link: https://open-exam-prep.com/
Audio file: https://episodes.captivate.fm/episode/2f7c179b-5569-4a52-97a9-80f95f04df35.mp3
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Duration seconds: 253

## Resource

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Due diligence under Section 6695(g) is mandatory for returns claiming EITC, CTC/ACTC, AOTC, and HOH status. • Completing and filing Form 8867 is a non-negotiable part of the due diligence process. • The "knowledge" requirement demands proactive questioning and probing of client information, not just passive acceptance. • The 2025 penalty is $600 per failure, meaning multiple errors on one return can lead to multiple penalties. • Use the mnemonic "Kings Can't Refuse Documents" to recall the four pillars: Knowledge, Checklists (Form 8867), Record Retention, and Documentation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

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## Transcript

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