IRS Publication 5713 – IRS Forms, Instructions, Pubs 2026 – Tax professionals face increasing scrutiny from the IRS when preparing returns that claim valuable credits like the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), American Opportunity Tax Credit (AOTC), or Head of Household (HOH) filing status. One essential tool for staying compliant is IRS Publication 5713, titled Due Diligence Interviews – Steps to Success.
This concise guide, revised in February 2025 (with an accessible version updated later), focuses on the critical interview phase of paid preparer due diligence. It helps tax pros avoid costly penalties, protect clients from repayment demands, and build stronger, more accurate returns.
Whether you’re a seasoned CPA, enrolled agent, or new tax preparer, mastering the techniques in Pub 5713 can make the difference between a smooth tax season and an IRS audit nightmare. This article breaks down the publication’s key advice, explains why it matters in 2025–2026, and provides practical tips to implement it effectively.
Why IRS Due Diligence Interviews Are More Important Than Ever?
Paid preparers must follow strict due diligence rules under Treasury Regulation §1.6695-2 and IRC §6695(g). These rules cover four main requirements:
- Knowledge — You must make reasonable inquiries if information seems incomplete, inconsistent, or incorrect.
- Worksheets — Use tools like the EITC Worksheet or similar aids to document eligibility.
- Form 8867 — Complete and submit the Paid Preparer Due Diligence Checklist with every qualifying return.
- Record Retention — Keep interview notes, client responses, and supporting documents for at least 3 years.
The interview itself is where the “knowledge” requirement comes to life. Pub 5713 zeroes in on this step, helping you gather accurate facts while building trust with clients.
Consequences of getting it wrong include:
- For clients: Repayment of credits plus interest, 2-year bans for reckless errors, or 10-year bans for fraud. They may also need to file Form 8862 to reclaim credits later.
- For preparers: Penalties up to $650+ per return (inflation-adjusted for 2026 filings), e-file suspension, Office of Professional Responsibility discipline, injunctions, or even criminal charges.
Following Pub 5713’s steps reduces these risks dramatically.
Step 1: Communicate in Advance – Set Expectations Early
The first “step to success” is proactive communication before the interview even begins.
What Pub 5713 recommends:
- Tell clients upfront that you’ll ask personal questions about their living situation, dependents, income, and filing status.
- Explain why: “This is required to ensure your return is accurate and to protect you from future IRS issues.”
- Share potential consequences clearly (using simple language, not legalese).
Practical tips for 2025–2026:
- Send a pre-appointment email or intake form that includes a short script from Pub 5713.
- Use plain-language examples: “If we claim Head of Household incorrectly, you could owe thousands back plus interest.”
- Offer the Spanish version of the publication (Pub 5713(sp), released March 2025) for bilingual clients.
This step builds transparency and reduces surprises, making clients more cooperative during the actual interview.
Step 2: Create an Open Dialogue – Listen More Than You Speak
Effective due diligence isn’t interrogation—it’s collaboration.
Core advice from Publication 5713:
- Be an active listener — Give clients time to answer fully.
- Work together on fact-finding — Phrase questions to encourage details: “Can you walk me through who lived with you last year?”
- Stay empathetic and non-judgmental — Avoid phrases like “That doesn’t sound right” that shut down conversation.
Real-world techniques:
- Use open-ended questions: “Tell me about your household in 2025” instead of “Did you live alone?”
- Document responses in real time (in your software or notes) to satisfy the recordkeeping requirement.
- Cross-reference with Form 886 series documents to verify claims.
Taxpayer Advocate Service guidance reinforces this: Ask follow-up questions when answers seem inconsistent, then document everything.
Step 3: De-Escalate Emotional Responses – Stay Calm Under Pressure
Clients often get defensive about personal topics like custody, residency, or income. Pub 5713 dedicates an entire section to handling these moments gracefully.
The de-escalation checklist:
- Listen. Pause. Breathe. — Don’t react immediately.
- Keep your tone and body language neutral.
- Reflect the emotion: “It sounds like this is frustrating for you.”
- Restate the question kindly, perhaps in different words.
- Re-explain the purpose: “I need accurate information so we prepare the correct return and avoid problems later.”
Example from the publication: Watch the IRS “Qualifying Child 2” video (one of several short due diligence videos) for a live demonstration of handling a tense conversation about a child’s residency.
This approach turns potential conflicts into productive discussions and protects you from accusations of being overly aggressive.
Essential IRS Resources to Support Your Due Diligence Process
Publication 5713 isn’t meant to stand alone. Pair it with these official tools:
| Resource | Description | How It Helps |
|---|---|---|
| Due Diligence Training Module | Free interactive course (English & Spanish) | Earn up to 2 CE credits while learning full requirements |
| Due Diligence Videos | Short scenario-based examples | See real interview techniques in action |
| Publication 4687 | Comprehensive paid preparer due diligence guide (updated Feb 2025) | Covers all four requirements in depth |
| Forms 886 series | Client-friendly explanations of required documents | Helps clients understand what to bring |
| Common Due Diligence Situations | IRS examples of tricky client scenarios | Practical avoidance of common EITC errors |
| Form 8867 Instructions | Detailed checklist guidance | Ensures proper completion and submission |
All are available free on IRS.gov. The Paid Preparer Due Diligence Training is especially valuable for new staff.
Best Practices for Tax Professionals in 2026
- Integrate into your workflow — Add Pub 5713 steps to your client intake checklist.
- Use technology wisely — Many tax software programs now include built-in due diligence prompts and documentation fields.
- Train your team — Require all preparers to complete the free IRS module annually.
- Document, document, document — Contemporaneous notes are your best defense in an IRS due diligence visit.
- Stay current — Check IRS.gov/tax-professionals/eitc-central regularly for updates.
Final Thoughts: Make Due Diligence Your Competitive Advantage
IRS Publication 5713 may be short, but its impact is huge. By following its three simple steps—communicate in advance, create an open dialogue, and de-escalate when needed—you’ll not only meet legal requirements but also deliver better service, reduce audit risk, and build lasting client relationships.
In an era of expanded credits and heightened IRS oversight, professional tax preparers who excel at due diligence interviews stand out. Download Publication 5713 today, watch the recommended videos, and make these steps part of your standard process.
Ready to level up your practice?
Visit IRS.gov for the full publication and start implementing these strategies before your next client meeting.
This article is for informational purposes only and is not tax or legal advice. Always consult the latest IRS guidance and consider professional training for your specific situation.