Prevent Improperly Documented Client Extensions

If you need information at the last minute to complete a return, have the client send the data via e-mail or fax. The e-mail or fax becomes part of your records and support. Document, document, document!

Another effective way to prevent the problem of improperly documented client extensions is a written confirmation of the amounts used to calculate the extension payment. The confirmation is sent to the client with the extension form and gives the client an opportunity to review the information and to change any information that appears incorrect, prior to April 18, 2017.

31 Reasons CPAs are Sued

CPAs who are sued are often in the wrong place at the wrong time with the wrong decision. These situations that landed CPAs in court are real—drawn from CAMICO's claims files.

1) Trusting a client too much

A long-time client asked her CPA to perform an audit for a new insurance company she's invested in. The CPA uncovered unverifiable assets but never verified them.

War Story: FBAR reporting; tax return preparation

For more than a decade, Sidney Swenson, CPA, prepared tax returns for one of his more successful clients, Matt Morrow, a star salesman in the construction supplies industry. Morrow had taken a job five years earlier in sales for Acme Building Products and Supplies, headquartered in the British Virgin Islands (BVI). Morrow was a U.S. citizen and maintained his residence in the U.S. but lived part time in BVI.

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Latest Articles

  • 15 Mar

    Prevent Improperly Documented Client Extensions

    If you need information at the last minute to complete a return, have the client send the data via e-mail or fax. The e-mail or fax becomes part of your records and support. Document, document, document!

    Another effective way to prevent the problem of improperly documented cli... read more

  • 24 Feb

    31 Reasons CPAs are Sued

    CPAs who are sued are often in the wrong place at the wrong time with the wrong decision. These situations that landed CPAs in court are real—drawn from CAMICO's claims files.

    1) Trusting a client too much

    A long-time client asked her CPA to perform an audit for a ... read more

  • 10 Feb

    War Story: FBAR reporting; tax return preparation

    For more than a decade, Sidney Swenson, CPA, prepared tax returns for one of his more successful clients, Matt Morrow, a star salesman in the construction supplies industry. Morrow had taken a job five years earlier in sales for Acme Building Products and Supplies, headquartered in the Bri... read more

  • 20 Jan

    Five Tips for Protecting Yourself During Tax Season

    Wally Bitman, CPA, a sole practitioner, was behind on completing a client's tax return. It wasn't totally his fault—a glitch in his tax preparation software meant fixing many other clients' returns as the April deadline approached. One of Bitman's wealthier clients was always late with h... read more