The Problem Tax Client: Opinions from the Field

One ongoing dilemma for tax professionals has been how to identify the clients who may pose problems for the practice, and what to do when a problem client is identified. Generally, a tax practitioner may rely on taxpayer-supplied information when preparing a tax return. However, this rule is not ab...

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Bibliographic Details
Published in:Journal of Tax Practice & Procedure 2007-04, Vol.9 (2), p.33
Main Authors: Fleming, Damon M, Doran, Martha, Whittenburg, G E, Raabe, William A
Format: Article
Language:English
Subjects:
Accounting firms
Client relationships
Compensation
CPAs
Due diligence
Fines & penalties
Income tax returns
Income taxes
Liability
Sanctions
Tax preparation
Tax refunds
Tax services
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Summary:One ongoing dilemma for tax professionals has been how to identify the clients who may pose problems for the practice, and what to do when a problem client is identified. Generally, a tax practitioner may rely on taxpayer-supplied information when preparing a tax return. However, this rule is not absolute-the practitioner must confirm any suspicious data supplied by a taxpayer. When a tax practitioner fails to follow the specified rules of tax practice, he or she may be subject to disciplinary action in the form of various civil and criminal penalties. Client acceptance procedures are widely used by most tax services firms, but such policies may be treated by both partners and staff as just another checklist or workpaper in the file. In addition, clients may develop problem behaviors over time, after the acceptance checklist is completed and filed away. The public's need for confidence in CPAs and tax professionals is discussed widely in today's business press, but what seems to be lacking is a thorough discussion about tax professionals' need to have confidence in their clients, and in the data that clients provide in completing tax return requirements.
ISSN:1529-9279