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 his information. This year, he'd definitely need to file an extension.

Reducing Your Risk: Documentation and Engagement Letters

By Randy R. Werner, J.D., LL.M./Tax, CPA

CPA liability exposures during tax season are always a concern, regardless of economic or professional conditions. CAMICO’s claims experience shows that many high-exposure tax claims have certain characteristics in common, primarily as follows:

  • The services for which the client had engaged the CPA were unclear.
  • The CPA had not clarified his or her role or the client’s expectations, usually because an understanding between the CPA and the client had not been reached or adequately documented.

Tax Engagement Letters Updated for 2017

All tax letters on the CAMICO Members-Only Site are current for the 2016 tax filing year. The following CAMICO sample engagement letters have been updated for the deadline changes for FBARs (Report of Foreign Bank and Financial Accounts) due in 2017 for calendar year 2016:

Individual Income Tax Preparation — Expanded
Corporate Income Tax Preparation — Expanded
S-Corporation Income Tax Preparation
Partnership Income Tax Preparation — Expanded
Income Tax Preparation for a Single-Member LLC
Preparation of Estate Tax Returns

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