Five Tips for Protecting Yourself During Tax Season

Wally Bitman, CPA, a sole practitioner, was behind on completing a client's tax return. It wasn't totally his fault—a glitch in his tax preparation software meant fixing many other clients' returns as the April deadline approached. One of Bitman's wealthier clients was always late with his information. This year, he'd definitely need to file an extension.

Reducing Your Risk: Documentation and Engagement Letters

By Randy R. Werner, J.D., LL.M./Tax, CPA

CPA liability exposures during tax season are always a concern, regardless of economic or professional conditions. CAMICO’s claims experience shows that many high-exposure tax claims have certain characteristics in common, primarily as follows:

  • The services for which the client had engaged the CPA were unclear.
  • The CPA had not clarified his or her role or the client’s expectations, usually because an understanding between the CPA and the client had not been reached or adequately documented.

Tax Engagement Letters Updated for 2017

All tax letters on the CAMICO Members-Only Site are current for the 2016 tax filing year. The following CAMICO sample engagement letters have been updated for the deadline changes for FBARs (Report of Foreign Bank and Financial Accounts) due in 2017 for calendar year 2016:

Individual Income Tax Preparation — Expanded
Corporate Income Tax Preparation — Expanded
S-Corporation Income Tax Preparation
Partnership Income Tax Preparation — Expanded
Income Tax Preparation for a Single-Member LLC
Preparation of Estate Tax Returns

Pages

Latest Articles

  • 11 Jan

    January Tip - Documentation Tips for Tax Season

    Jurors (who are members of the public) generally consider CPAs to be experts in documentation, and falling short of that expectation when faced with a liability lawsuit may be viewed by the public as negligent and below the standard of care for the services rendered.

    The fol... read more

  • 17 Dec

    War Story 113

    #113: Difficult Client; Tax Planning and Return Preparation Services — A client with high turnover and disorganization in its accounting and financial staff is not only frustrating, but also a liability exposure if documentation is not thorough.

    read more

  • 17 Dec

    General Data Protection Regulation

    General Data Protection Regulation ("GDPR") is a European mandate that went into effect on May 25, 2018. The regulation is designed to establish uniform data privacy law across the European Union, and applies to any EU established business, including U.S. companies and firms with offices i... read more