03/27/2026
The IRS does not care that your client lied to you.
Let me say that again.
If your client gave you wrong information and you filed it without verifying — you are still responsible.
That is what due diligence means.
It means YOU are required to:
✔ Ask the right questions
✔ Verify the information provided
✔ Document what your client told you
✔ Be able to explain every line of that return
Due diligence is not optional.
It is not a suggestion.
It is a legal requirement.
And the penalty for not following it?
Up to $650 per failure per return.
If you prepared 100 returns this season with due diligence violations — that is potentially $65,000 in penalties.
From one tax season.
Ask the questions.
Verify the answers.
Document everything.
Your EFIN depends on it.
Drop a 🔥 if this was news to you or if you needed the reminder.
