What additional due diligence is required by paid preparers under IRC Section 6695(g) after the TCJA?

The requirement for paid preparers under IRC Section 6695(g) after the Tax Cuts and Jobs Act (TCJA) places a specific emphasis on determining eligibility to file as a head of household. This particular duty is essential because the head of household status can significantly affect the taxpayer's filing status, deductions, and overall tax liability.

To qualify for head of household status, the taxpayer must meet certain criteria, including maintaining a household for a qualifying person and being unmarried or considered unmarried at the end of the tax year. The preparation of tax returns involves verifying that these conditions are met to ensure compliance with tax laws and prevent any possible penalties or discrepancies.

The other options do not capture the specific due diligence requirements set forth in the recent legislation. For instance, while identifying tax-exempt status, ensuring record-keeping for charitable contributions, and validating self-employment income are all relevant practices in tax preparation, they do not directly relate to the heightened level of scrutiny regarding head of household eligibility established by the TCJA. Thus, it is critical for paid preparers to understand and apply this specific provision in their practice to maintain compliance and support their clients accurately.