Here is an
interesting topic for discussion.
I have said in
my e-book SO YOU WANT TO BE A TAX PREPARER –
“The US Tax
Code is a convoluted mucking fess. Special tax situations require specialized
basic education and training and continuing professional education. It is my belief that you choose tax
situations that you will not do.
Besides the
need for additional specialized initial and ongoing education and training,
many special tax situations come with additional work, such as more stringent “due diligence”
requirements, additional exposure to liability for error and preparer
penalties, and additional potential for just plain agita and aggravation.
I would
seriously consider not accepting, for example, tax returns with a claim for the
Earned Income Tax Credit, or returns with foreign source income that require
additional FBAR reports and filings.
And, to be
perfectly honest, looking back over my 45 years in the business, if I were to
start all over again I think I would
limit my practice to 1040s. Period. No 1065s.
No 1120s. No 1041s. No 990s.
Just 1040s. Why? Again, to limit my need for ongoing CPE to
1040 issues only, and to limit my exposure to agita and liability. I have found that there is more potential for
problems with business entity returns than with 1040s.”
Do any of you
currently limit your practice to 1040s only?
Do you wish you had?
Do you refuse
returns with EIC and other specific tax situations? Do any of you wish that you
had?
Is limiting
areas of practice impossible for a tax preparer just starting out?
What do you
think?
TAFN
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