Tax Examination

[JG EA]

I'm sure if you check your engagement letter from your CPA it will have language in it about keeping records or be responsible for records. Taxpayers often pass off responsibility to the preparer, but you would have known whether your deductions were in the realm of reasonableness. If you really feel that you rightly took legitimate deductions then at least try to reconstruct partial records and explain your lack of other records. And as everyone said, get help.

[Corduroy Frog]

Restate the Obvious

[QUOTE= OR SHOULD I GO THROUGH TAX PROFESSIONAL.
[/QUOTE]

"Lucky," how many of us have told you to go to a tax professional?

For anyone to help you, they have to be looking at specifics - actual returns, supporting documentation, notices, etc. and continuing to drag bits and pieces of your situation in front of the message board is not going to enable any of us to give you quality advice. You sound very much like someone trying to avoid paying someone to do what you need very badly for them to do, in the hopes that this message board can solve your problems. We can't -- any of us would need not only proximity but also time.

All of us are in the tax preparation business, and we believe in the things we do. This includes professional and well-meaning help in your area by someone in our industry. Sorry to sound harsh, but this is candidly what you need to do. Thank you for visiting this forum, and understand that all of us wish you well in this audit. We hope you will visit us again after your ordeal is over, and let us know how you did.

Regards, Corduroy Frog

[oceanlovin'ea]

Agree with JAinNC

You need to start making some phone calls NOW and find someone to help you. Don't wait!

Where are you located? Maybe someone on this board is close to you and would be willing to help you.

[dsi]

dsl - your statements are technically correct. No disrespect intended, but the other side of it, imho, is that the preparer would have some responsibility to pass this information along to the client. Unfortunately, we as preparers see things so much that we begin to assume everyone should know. By going to the CPA, to begin with, the client is acknowledging that he/she does not know the ins and outs and that is part of what he is paying for. If self prepared - a different situation.
LT

As required by law, each of my clients receive a "copy" of their tax returns for their files. Included in the client copy is my cover letter that states, among other things, that the client is 100% responsible for retaining/maintaining the supporting documentation in case of an audit. I also state that I prepared their returns based on info the client provided, and that I have not audited, reviewed or otherwise verified the clients info for accuracy or fraud.

I find it difficult to believe that the CPA didn't say anything about keeping receipts. Sure it's possible. He may have something written in his engagement letter that addresses the issue?

[thomtax]

I find it difficult to believe that the CPA didn't say anything about keeping receipts. Sure it's possible. He may have something written in his engagement letter that addresses the issue?

Dave,

I was not questioning your work, I had no doubt about it. And it is very possible that the other person handled everything. I'm guilty of the same thing I was talking about. Here locally, there are two, very successful preparers, with letters behind their name, that tell the clients "Don't worry about anything, I'm taking care of it for you." One of them has everyone to sign a POA so that the client never pays attention to IRS correspondence.

It frustrates me and, sadly, makes me cynical of others work. :-(
On the good side, each year I pick up a few that have two to five years unfiled returns.

Thanks for your reply.
LT

[dsi]

LT, I was only sharing what I do to CMA. In my experience, I've only come across one tax preparer who didn't have an engagement letter or cover letter of some type that pointed out these issues. However, I realize that there are perhaps many out there that do nothing to protect themselves.