MASTER IRS DUE DILIGENCE IN 3 DAYS: Templates, Best Practices & Real-Life Scenarios Included
Still unsure if your due diligence process is bulletproof?
Join the 3-Day Virtual Training That Helps Tax Pros Stay Compliant, Avoid Penalties, and Feel Confident Facing IRS Scrutiny
Master the rules. Apply best practices. Protect your business.
Here’s What We’ll Cover Over the 3 Days:
IRS Due Diligence Deep Dive
Before you can fix the process, you need to fully understand the rules. On Day 1, we’re laying the foundation.
What Circular 230 really says about your responsibilities
Common Due Diligence penalties — and how to avoid them
Why “I didn’t know” won’t protect your PTIN
You'll leave with a clear picture of what the IRS actually expects from you, no more second-guessing.
Implementing Due Diligence the Right Way
Now that you understand the rules, we’ll move into execution. This is where it gets practical.
How to create airtight client file systems
Templates to document EITC, HOH, and AOTC properly
Examples of what’s acceptable vs. what’s not
You’ll finally have a process that’s both compliant and repeatable — saving you time and reducing risk.
Review, Q&A + Audit-Ready Systems
It’s not enough to learn — you need to apply. That’s why Day 3 is all about review, feedback, and real-time support.
Real feedback on your client documentation
Group Q&A with Ambrea’
Live walkthrough of the done-for-you templates
We’ll make sure you’re ready to move forward with total confidence and clarity.
After This 3-Day Training, You’ll Walk Away With:
A rock-solid understanding of IRS due diligence and how it applies to your everyday work
The confidence to document client files properly — without stress or second-guessing
A system that protects your PTIN, your income, and your peace of mind
Meet Your Coach
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.
Meet Your Coach
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.
It’s not a matter of if, it’s a matter of when.
Get ahead of IRS scrutiny by locking in your compliance systems now — before busy season hits and mistakes slip through the cracks.
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.
