Monday, October 23, 2017


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?

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