One of my preparers is having an EITC audit for 2010.They are looking at returns where people claimed nieces,nephews,and grandchildren .They say we should have asked and documented the answer of where are the parents of the child and why they are not claiming them.At that time I had a client in the office claiming her grandchildren so I asked her.She said"the mother is a drug addict and I do not know where she is and have no idea who the fathers are" I took this answer to the agent and would this be OK for future audits he shook his head and said "I think it would". I do not feel we should have to ask and document such personal questions.
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There are many things about this line of work that I don't feel I should have to put up with.
But I don't get a vote. This is just another part of the job. Learning how to ask questions that are both tactful and precise is another part of the job. -
I agree. It can be painful to ask some questions, especially when the circumstances already telegraph that a big problem of some kind exists and the answer is likely to be embarrassing to somebody.
When I must pose a question don't want to ask, I usually preface it by saying something to the effect that "this isn't really any of my business and I don't like asking, but the IRS requires me to ask this...". I expect most of you do something similar..."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Oh, heck, no.Originally posted by JohnH View Post
If we're required to ask, then it is our business (literally & figuratively.)
Anyway, I like to establish pretty early on that I'm in a "need to know" status on all sorts of client stuff. 
It is always ongoing learning for me to try to improve my communication with clients.Originally posted by Gary2 View PostComment
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Probably just a matter of semantics, but I honestly don't think a lot of what I have to ask is any of my business. I could do just as good a job for them without some of the details if I could simply take their word or use what's in the documents they provide. As a matter of fact, I have to know a lot of things about some of my clients that I'd be very content not knowing. 
Last edited by JohnH; 02-02-2012, 10:01 AM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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So very true . . .Originally posted by JohnH View Post
could simply take their word or use what's in the documents
I'd be very content not knowing.
MLINDER42, please keep us informed on your experience! Good luck.Comment
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It is a delicate situation at times. But I believe IRS due diligence requires we ask appropriate questions. Also asking various delicate questions can often lead to a much better result for the client.
My favorite was a married couple that seemed somewhat put off by my various questions. When it became apparent that they lived with her Mom all year I suggested maybe it would be best for mom to claim the children. Again they were somewhat put off by this suggestion as after all it was their 2 children. As it turned out they did eventually agree to bring mom in and it ended up that the refund would be over 4000 more if they let mom claim the kids. Naturally they were very happy ... assuming mom was going to give them most of the money.
Point being that if I wasn't such a pain in the butt they would have lost out on 4 grand.Comment
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I also find it very embarrassing to ask personal questions - my software has a bunch of them for head of household like do you have a divorce decree? - I tell them these questions are not for someone like you, I'm asking because of EIC fraud, but it probably won't stop fraudulent returns - it'll just make me ask you too personal questions.
Yes, I could probably skip by them and still electronically file, but I have a compulsion to clear the notes screen.
.JGComment
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Just the facts, ma'am!
Those don't bother me in the least.Originally posted by JG EA View Post
Where things can get antsy involve scenarios such as trying to explain exactly what "not living with your husband for six months" really means.
And then you have the TMI folks: A simple inquiry or two results in a detailed explanation of all that went on with those medical expenses.
FEComment
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We are in the business of asking personal questions. I too let my clients know that many of the questions I ask are to insure that I have sufficient information to provide them with the most accurate return possible.
In this case, if what the grandparents say is true and they have taken the kids because the mother is mia then I would suggest that they either file for legal guardianship or contact the agency in there area and be declared foster parents. This way they have documentation that stops any questions about whether they qualify to take the kids.
Aside from the support issue they would be able to get various kinds of assistance to aid in supporting the kids.Believe nothing you have not personally researched and verified.Comment
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Audit ALL of us
A couple years ago I helped out a friend who has a storefront operation for a few days in January. I found out what I suspected all along -- much of the EIC crowd will tell whatever lie they can to establish their EIC/Refund. The situations they described were grossly suspicious but all you can do is take their answer unless you know otherwise.
The IRS is wanting us to do their work for them. I think you should document the obvious, but there is a limit as to how extension your questioning should be unless there is a compelling reason to go further. We're not supposed to audit, at least that's what IRS tells us.
The aforementioned storefront operation has 3000 customers, some 2500 of whom are EIC customers I estimate. I wonder if HRB, JH, Liberty, are getting audited and beat up on. Could be that they are, I just never hear of it. If IRS is interested in dinging me for my half-dozen EIC customers, then why should not go after the big storefronts for THOUSANDS of EIC returns?
I can tell you this much -- if I asked all the personal questions that the IRS wants, my few customers would get up and leave and go to the storefronts.Comment
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I tell clients
at the beginning of the interview that I am going to ask them a bunch of nosy questions that would normally be none of my business but some possible answers are relevant to my getting them their best legal bottom line.Comment
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Let's turn this around a tad maybe.
Sure, we're asking the tough quetions that IRS expects us to, but we should stress to clients that by doing this, we are protecting THEM from the evil clutches of IRS.
Point of view.
depends on
You view point.
or vice versa.ChEAr$,
Harlan Lunsford, EA n LAComment
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Corduroy Frog
I am in one of the storefront places you describe. I can assure you, we have ro ask just as many uncomfortable questions as anyone else. In our office, under certain circumstances, they have to give us evidence of the child's residency before we complete the return. So, don't feel alone. We hate it too.
You have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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What are some of the circumstances? And for kids under school age, what constitutes evidence of residence?Originally posted by WhiteOleander View PostComment
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