Due Diligence Manager SOP + Approval Checklist

Audit-Defensible Review System for Tax Office Managers

Running a tax office means one weak set of preparer notes can expose your entire firm to IRS penalties — even if the return is technically correct.

This Manager Due Diligence SOP + Checklist gives you a clear, repeatable, IRS-defensible system for approving or declining returns based on preparer notes, exactly the way IRS revenue agents evaluate compliance.

This is not theory.
This is audit-tested, real-world due diligence protection.

✅ WHAT THIS PRODUCT DOES

✔ Standardizes how managers review returns
✔ Prevents approvals based on “looks fine”
✔ Forces documentation of inquiry, inconsistencies, and resolution
✔ Protects owners, managers, and preparers from §6695(g) penalties
✔ Creates a defensible paper trail before the IRS asks

If a return gets audited, these procedures show the IRS how your firm thinks, not just what it filed.

📦 WHAT YOU GET (INSTANT DOWNLOAD)

📘 Manager Due Diligence SOP (PDF)

A full, ready-to-implement Standard Operating Procedure covering:

• Manager role and limits

• Approval vs. mandatory decline criteria

• Required note standards (facts, inconsistencies, resolutions)

• Proper Form 8867 review

• Escalation and resubmission rules

• Audit-defense language managers can confidently stand behind

Written in plain English, not IRS jargon — but aligned with IRS expectations.

📋 1-Page Manager Approval Checklist (PDF)

A printable, easy-to-use checklist managers complete for every high-risk return, including:

• EITC

• CTC / ACTC / ODC

• AOTC

• Head of Household

• Schedule C

This checklist:

• Forces consistent reviews

• Creates documentation of the manager’s diligence

• Protects managers personally in an audit

🎯 WHO THIS IS FOR

✔ Tax firm owners
✔ Office managers & quality reviewers
✔ Multi-preparer offices
✔ Remote or in-person operations
✔ Firms claiming refundable credits

If you approve returns, you need this system.

🚫 WHAT THIS IS NOT

❌ Not generic IRS guidance
❌ Not a document-collection policy
❌ Not “just training material”
❌ Not something you still have to figure out

This is a plug-and-play compliance system.

🧠 BUILT ON REAL AUDIT EXPECTATIONS

The IRS does not ask:

“Did the return look reasonable?”

They ask:

“Show me how your office ensured due diligence was performed.”

This product gives you that answer — in writing.

📥 DELIVERY

✔ Instant digital download
✔ Professionally written
✔ Ready for PDF use
✔ Can be branded for your firm

⚠️ IMPORTANT NOTE

This product supports due diligence compliance but does not replace professional judgment or IRS regulations. It is designed to strengthen documentation and review processes, not to guarantee audit outcomes.