Tax Tip Quote

[jimenright]

IRS Tax Tip 2007-6 states: "The most reputable preparers will request to see your records and receipts ..."

I have been doing tax returns for several years and have never asked to audit my clients receipts for medical bills, charitable deductions, employee expenses, etc. Unless they made the request. Of course, I insist on seeing w2s, 1099s, 1098s K1's, etc. I except the clients bottom line for detail deductions unless they request otherwise. I always inform my clients that they have the ultimate responsibility to prove the deductions.

Am I wrong in this?

[sea-tax]

IRS Tax Tip 2007-6 states: "The most reputable preparers will request to see your records and receipts ..."

I have been doing tax returns for several years and have never asked to audit my clients receipts for medical bills, charitable deductions, employee expenses, etc. Unless they made the request. Of course, I insist on seeing w2s, 1099s, 1098s K1's, etc. I except the clients bottom line for detail deductions unless they request otherwise. I always inform my clients that they have the ultimate responsibility to prove the deductions.

Am I wrong in this?

I don't think so. I usually tell clients to bring in all w-2's 1099's, 1098's and the like. I also have them bring in the other stuff but only check it if the figures seem unreasonable or I can't trust the client. Most fo my clients are fortunately truthful and provide great deatil so I have little room not to trust them.

[dsi]

Most of my clients will bring me a completed tax organizer (which I provide). In my engagement letter, and on the clients copy of the completed tax return I state very clearly that:

"I have prepared your enclosed tax returns from information provided by you, without verification or audit. Please review these returns carefully to ensure there are no omissions or misstatements."

I am not an auditor!

[fliszt]

I too

have never asked for receipts, ie: cash/non-cash charitible donation receipts, medical, etc. But I have look some in the eye and said something as "You do know that you must have receipts for this . . . .". Mileage from job#1 to #2 is a big one for me. Well, the guys down at the union hall say their tax guy takes these deductions. Well, . . . . I also have a very strong disclaimer in my letter that all receive with their tax folder.

[Snaggletooth]

No One Does This

Enright, no one does this that I know of.

IRS can have all the fantasies they want about reputable preparers auditing their clients' information prior to filing. Ridiculous!

The information comes from the taxpayer. If something looks out of line I will ask a question. If it looks like abuse, I'll even back away from doing the return. That's about as "reputable" as anyone should expect me to be.

[thomtax]

I agree

Snag - I agree with you completely. A good faith effort is the best that can be done. How would you be able to stay in business if you spend the week researching the one client that you would be able to handle? Plus he/she is mad and goes somewhere else.

You might even get shot at by an irate boyfriend/girlfriend.:-)

[RJM]

Guess I'm odd....

cuz I always ask for charitable receipts for review. Especially for noncash contrib's I often counsel the TP when their claim is way over the norm for, for example, a garbage bag full of used clothing. This seems to be the normal unit of measurement. Often I counsel the other way, telling the TP that the claimed dedux appears a bit low. Either way, I like to review the backup. For other dedux, like most of this board, if the amount appears unusual I ask the TP for some background or backup. Have never had an argument with a TP using these procedures. -Bob