FREE MASTERCLASS:
How to Protect Your Tax Business from IRS Due Diligence Penalties
Discover the red flags that trigger IRS audits, and how to properly document your client files to stay compliant and avoid costly fines.
FREE MASTERCLASS:
How to Protect Your Tax Business from IRS Due Diligence Penalties
Discover the red flags that trigger IRS audits, and how to properly document your client files to stay compliant and avoid costly fines.
What You’ll Learn in This
FREE Masterclass:
The top mistakes tax pros make that lead to audits
How to fix your documentation process fast
Real IRS expectations for EITC, ACTC, HOH, and AOTC returns
How to protect your business, your PTIN, and your peace of mind
BONUS Gift!
Just for registering, you'll get instant access to our “IRS Audit Red Flags” Cheat Sheet, a must-have for staying ahead of due diligence issues.
What You’ll Learn in This
FREE Masterclass:
The top mistakes tax pros make that lead to audits
How to fix your documentation process fast
Real IRS expectations for EITC, ACTC, HOH, and AOTC returns
How to protect your business, your PTIN, and your peace of mind
BONUS Gift!
Just for registering, you'll get instant access to our “IRS Audit Red Flags” Cheat Sheet, a must-have for staying ahead of due diligence issues.
MASTERCLASS DETAILS
DATE
[To be determined]
TIME
[To be determined]
HOSTED BY:
Dr. Ambrea' Lacy
With over a decade of experience, she’s helped hundreds of preparers grow their businesses through expert mentorship and cutting-edge software solutions.
As the founder of a top-tier tax software company, Ambrea’ blends innovation with real-world strategy, giving professionals the tools and confidence to scale with purpose. Whether you’re just starting out or ready to level up, Ambrea’ is here to help you lead, grow, and succeed.
Real Pros Prepare, They Don’t Panic
This masterclass will show you how to lead with confidence, protect your PTIN, and finally feel in control of your compliance.
You’ve worked too hard to risk it now.
Frequently Asked Questions
Got questions? We've got answers.
What is IRS Due Diligence and why is it so important for tax professionals?
IRS due diligence refers to specific requirements tax professionals must meet when preparing returns that claim the Earned Income Credit (EIC), Child Tax Credit (CTC), American Opportunity Tax Credit (AOTC), or Head of Household (HOH) status.
You are legally obligated under IRC §6695(g) and Treasury Reg. §1.6695-2 to properly interview, document, and evaluate eligibility for these credits. Failing to meet these obligations can result in substantial penalties — even if the tax return is accurate.
What are the penalties for noncompliance with IRS due diligence?
The IRS may audit up to 25 files, and for each file, you can be assessed up to 4 separate $600 penalties, totaling up to $2,400 per file. That’s a maximum exposure of $60,000 for one audit.
Here are the 4 key due diligence penalties:
- Knowledge Standard Violation (you knew or should have known the claim was incorrect)
- Failure to Complete Form 8867
- Failure to Keep Proper Records
- Failure to Ask Adequate Questions/Document Responses
Refer to IRC §6695(g) and IRS Pub 4687 for more.
What happens if I fail to meet due diligence requirements set forth by the IRS?
Failing to meet IRS due diligence requirements can lead to serious consequences, including:
- Suspension or expulsion from the IRS e-file program
- Disciplinary action by the IRS Office of Professional Responsibility (OPR)
- Injunctions barring you from preparing tax returns for others
- Criminal penalties for filing fraudulent returns
Compliance is critical to maintain your professional standing and avoid these risks.
What should I do if I get selected for a due diligence audit?
Contact us immediately. We’ll guide you from start to finish.
Our team will:
- Perform a Due Diligence File & Notes Review for up to 25 files
- Review your client interviews, documentation, forms, and procedures
- Help you prepare your audit responses
📅 Schedule your free consultation to learn more about how we can help you avoid or survive an IRS due diligence audit.
Who are these services for?
These services are ideal for:
- Tax professionals preparing EIC, CTC, HOH, or AOTC returns
- New preparers who want to avoid costly mistakes
- Experienced preparers facing an IRS audit or notice
- Service bureau owners training large teams
- Anyone seeking to avoid up to $60,000 in due diligence penalties
What’s included in the 3-Day Virtual Due Diligence Training?
You’ll get 3 days of intensive live instruction (approx. 2 hours per day) covering:
- IRS due diligence regulations, penalties, and audit process
- Proper file documentation and interview strategies
- How to meet the “knowledge requirement” without risk
- Real-world audit case studies
- Homework, templates, and checklists for hands-on support
Price: $197
🚨 Not recorded — attendance is required.
Do you offer group training for my staff or service bureau?
Yes. We offer customized group training that aligns with your brand and firm structure. These can be virtual or in-person.
✅ Special pricing is available.
📅 Schedule your free consultation to build a custom training package for your team.
Can I book a one-on-one audit or review of my current due diligence procedures?
Yes. We offer personalized Due Diligence File Audits, covering up to 25 client files. You’ll receive:
- Feedback on documentation
- Notes review
- Risk assessment and audit readiness tips
This service is $297. We recommend this before or after IRS audit notices. Book a free consultation for details.
I have a large number of clients — can you help me set up my own compliance or due diligence department?
Absolutely. We can help you establish an internal compliance process to ensure your team consistently meets IRS due diligence requirements.
This includes:
- Staff training
- File documentation systems
- Due diligence workflow implementation
📅 Book a free consultation for a tailored compliance solution.
What are the due diligence templates and how can they help my practice?
Our Due Diligence Templates & Tools Package ($997) includes:
- Interview question bank
- Due diligence checklists
- Notes & audit-ready documentation templates
- Organizational chart for team compliance
- Samples of successful past audit notes
- These tools are essential for systematizing your compliance process.
Are the live 3-day virtual trainings recorded?
No — they are not recorded. To protect the integrity of the training and ensure participation, attendees must show up live each day.
✅ Be on time
📝 Take detailed notes
🙋♀️ Ask questions and complete homework
How often do you offer free masterclasses and live virtual training?
We host:
- Free masterclasses weekly (1x per week)
- 3-day live virtual trainings monthly (see the training calendar below)
📅 Click the links below to register for our next free masterclass or enroll in the monthly training.
