Verification letter

[NotEasy]

Has anyone else been requested by your client to verify that he is self-employed? They usually need it when they apply for a loan.

I wonder how the other tax professionals handle the situation. Are we really in the position to verify a client is self-employed in a certain year just because they have a 1099-MISC for that year?

For example, supposed your clients told you he was 45 years old when you prepared his 2008 tax return. And then later he wants you to write a letter to verify that he was 45 years old in 2008. Can you do it? I think not.

I have always refused to do the verification and, through the years, I have lost a lot of clients because of it (of course they wouldn't come back the next year after I refused to help them with the verification).

Is there a better way to handle it?

[BP.]

Has anyone else been requested by your client to verify that he is self-employed?

I too stopped doing this a few years ago, when all the mortgage mess started. So as not to upset them, I tell them my insurance carrier doesn't permit it, which I think I learned from a poster here. I don't want any liability in that regard. Haven't lost a client over it.

[taxea]

I also refuse to do them. The tax return is prepared on the information provided by the client. There were several posts on this subject last year and one could even obtain a sample letter. We are not here to satisfy the third-parties needs we are here for the needs of our clients in the preparation of their tax returns.

I do nothing to verify that the client is in business so how would I be able to verify this for a broker. The Sch C speaks for itself and should provide the verification they need.

[oceanlovin'ea]

SChedule C

I think that I would just tell them to show the schedule C to the person that wants verification. They also should have obtained an occupational license from their county which would prove they are in business.

If I did write a letter, it would only state that I prepared a Schedule C for so and so and that the Schedule C is for self employed people to report their income.

Linda

[taxea]

The ones that were asking me for the letter already had the sch c. My guess is that so many preparers were uncooperative with this issue that most requesters don't ask for it anymore. The letters they were getting did not respond with what they asked for.

[S T]

Receiving

I am now for late 2008 and 2009 receiving a phone call from the mortgage underwriter, verifying on the phone that I prepared the tax return for a specified year.

Nothing more/less.

Sandy