TAX TIP: Be ready to prove ‘Head of Household’ status

The Tax Cuts and Jobs Act requires paid tax preparers to take additional steps to verify claims of Head of Household status. The new due diligence requirements are intended restrict an ineligible taxpayer from filing as a head of household. Under IRC §6695(g) a tax preparer who fails to meet these requirements results in a $500 penalty per failure.

Proof of eligibility would normally consist of eligible dependent records like a school record that indicates the child’s address or a marital court order, if applicable.