During the past 28 years that CAMICO Claims and Loss Prevention specialists have helped CPAs with fraud exposures and damages, many lessons have been learned. For instance, CAMICO claims experience consistently shows that fraud and defalcation are major contributors to significant professional liability claims for CPAs, as illustrated by the following chart on “What Causes the Big Claims.”
Impact #103 - Consequences of Not Filing the Required Tangible Property Regulation 3115s by Tax Year 2014
What are the issues or consequences to the taxpayer and the tax return preparer if a taxpayer does not comply with the new tangible property regulations (TPRs), i.e., file the required 3115(s)?
CAMICO War Story: Tax return preparation and non-filing of FBAR form. January 2015 – Tip of the Month
“War Stories,” drawn from CAMICO claims files, illustrate some of the dangers and pitfalls in the accounting profession. All names have been changed.
When James Clay, CPA, put together his clients’ tax organizers and questionnaires, he included the question regarding whether the client had “a financial interest in, or signature or other authority over, any financial accounts (including bank, securities, or other financial accounts) in a foreign country, exceeding $10,000 in the preceding calendar year.”
Client screening is excellent risk management as well as practice management. It’s the first step in an effective loss prevention program, and it can be used to identify less desirable clients that may be keeping your firm from developing the clients you want. Re-evaluate your relationships with clients on a regular basis—at least annually. The following checklist highlights some of the warning signs that it may be time to disengage from certain clients.
The Loss Prevention Specialists at CAMICO consult with policyholders on a variety of topics, providing practice and risk management advice. In his video, Duncan B. Will, Loss Prevention Manager, shares an example of how CAMICO helps CPAs via our Advice Hotlines. One of the topics he mentions is fee collections – CAMICO frequently receives calls from CPAs seeking advice on this problematic area. Here are some practical tips on dealing with some of the issues.
Social media has contributed to the blurring of boundaries between work lives and personal lives, partly because social media sites are open to both personal and work-related content, which can be posted from home computers as well as work computers.
Tax season is over, but your firm’s exposure to liability risk is not.
CAMICO often hears of CPAs who choose not to purchase Professional Liability Insurance because they think it is unnecessary. Here are 4 reasons why CPAs don’t think they need malpractice Insurance, and how this approach can be risky.
As a CPA, you need ‘Errors and Omissions’ insurance to cover damages from an error committed by your firm in providing professional services; and to protect the assets of your firm and partners from the financial consequences of a claim.
Data breaches and identity theft have led to an increase in fraudulent tax filings, and tens of thousands of honest taxpayers have been subjected to delays in their legitimate refund claims, according to the Internal Revenue Service.