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When working as a tax professional, one issue that often arises is the need to provide difficult or disappointing guidance to a client. In the
When working as a tax professional, one issue that often arises is the need to provide difficult or disappointing guidance to a client. In the following example, determine the best course of action. Your new client brought you current year tax information along with a prior year income tax return and asked you to prepare a current year tax return. During preparation of the income tax return, you notice an error on the prior year form that increases the amount of tax due. The only way to fix the error is for the client to amend the tax return. What should the preparer do next? What should the client do? What if the client doesn't want to amend the return?
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As a tax professional encountering errors on prior year tax returns when preparing current year returns is not uncommon Heres a suggested course of ac...
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