Ethics Question

[momona]

I'm an Enrolled Agent and prepare tax returns, do financials, etc. as an employee of a corporation that I am half owner of.

I am also a part-time employee at a non-profit where I do bookkeeping on QuickBooks. The Secretary-Treasurer has asked that I help her prepare their 990 but not sign as a preparer. My question is: Can I do this and not be subject to any liability because I am doing this as an employee of a firm? Or am I subject to the same rules as if someone prepared an incorrect return based on information I provided them?

[kathyc2]

I'm an Enrolled Agent and prepare tax returns, do financials, etc. as an employee of a corporation that I am half owner of.

I am also a part-time employee at a non-profit where I do bookkeeping on QuickBooks. The Secretary-Treasurer has asked that I help her prepare their 990 but not sign as a preparer. My question is: Can I do this and not be subject to any liability because I am doing this as an employee of a firm? Or am I subject to the same rules as if someone prepared an incorrect return based on information I provided them?

If you are preparing the form as an employee rather than a 3rd party preparer, you do not need to sign the form. As far as liability, I think that would be between you and the employer if there was a problem. Obviously, it would be unethical to put information on the form that you know is incorrect whether you sign the return or not.

[Rapid Robert]

odd request

I'm an Enrolled Agent [...]

I am also a part-time employee at a non-profit where I do bookkeeping on QuickBooks. The Secretary-Treasurer has asked that I help her prepare their 990 but not sign as a preparer. My question is: [...]

My question is, why is the Secty-Treas asking you to do this? I wonder why she even is thinking about paid preparer signature requirements. Is this something she researched before talking to you? Or maybe she is getting paid for doing it, and doesn't want anyone to know you helped her on company time. Is the return to be efiled, if so are you acting as ERO? Or maybe she is using software intended only for DIY preparers.

As an EA, you are subject to Circ. 230 as well as the code and regs. Have you checked there for signing guidance?

[TAXNJ]

3 Best places to get your answers:

1 - your insurance company

2 - Circ. 230

3 - your Tax Attorney

[Snaggletooth]

Something's Funny

[QUOTE=Rapid Robert;183466]My question is, why is the Secty-Treas asking you to do this?[QUOTE]

I am with Mr. Robert on this one. Don't know there is anything afoul with the motives, but something has a fish smell to it. There have been all manner of admonitions to assisting with a tax return and not signing it, as this raises the issue of what responsibilities attach to you as an EA. If you are assisting as an employee (refer to bizarre arrangement in the original post), then I don't believe you have to sign it. Even though you are paid as an employee, you effectively are not being paid separately as a tax preparer.