New Disclosure Question

[Jiggers]

Client come in and says my mortgage company needs verification that you did my return this year and have done so for so many years and that I file a Schedule C on that return.

In the past the client gave me written permission to do this. No problem.

What about now with the new disclosure/use regulations?

[joanmcq]

I don't write those period. But I'd say get a disclosure, especially if you are sending it directly to the mortgage co. And check with your E&O provider as to verbage.

[Jesse]

Joanmcq gave good advice. I am still using my letter which follows and am requiring the new written disclosure from the client before I send this letter:


I prepared individual income tax returns for [client name] for the past [ ] years based upon information given to me by [client name]. The returns that I prepared contain a Schedule C and Schedule SE, Self-employment tax computation.

My services to [client name] were and remain limited to the preparation of individual Federal and [state name] income tax returns from information provided to me by the client. I have not reviewed, audited, or otherwise attempted to verify any of the information given to me by [client name]. Consequently, I cannot confirm its accuracy or completeness. You should perform your own independent procedures and tests as you deem necessary for approval of credit.

Sincerely,
xxxxxxxxxxxxxxxx
Enrolled Agent

[taxmandan]

I would prepare such a letter and give it to the client, he can do with it as he pleases. If the bank wants it directly from me, I decline due to the elevated enforcement of privacy laws. Time to train the lenders in the new way of doing business.

[ChEAr$]

verification

Client come in and says my mortgage company needs verification that you did my return this year and have done so for so many years and that I file a Schedule C on that return.

In the past the client gave me written permission to do this. No problem.

What about now with the new disclosure/use regulations?

In the past I've heard a mortgage company wanted something in writing like this,
but I said to hell with them. All they have to do is look at page 2 of the 1040 to see who
I am, and then at the schedule c contained within the return. Asking for something like
this is the height of stupidity. And really all we would be saying is that we prepared the
return with a schedule c and not that client actually filed the return.