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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 … Read more

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 … Read more

The Internal Revenue Service recently warned tax return preparers about two new phishing schemes: One is an email sent to tax preparers asking them to update their e-Services information. The IRS will not send email asking preparers to click on a link to update accounts. The links provided in the email are part of a … Read more

Subject: FBAR reporting; admitting liability/assuming damages without prior consent Services: Tax Return Preparation Battle #1: FBAR reporting 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 … Read more

CAMICO’s Loss Prevention Hotlines help policyholders with a wide variety of risk management topics, including accounting and auditing issues, client screening, disengagement, fraud, internal control, ethics, conflicts of interest, and many others. Our Tax Advice Hotline helps policyholders gain a better understanding of the federal tax issues and potential problems associated with high-risk estate, gift, … Read more

CPAs face many risk exposures that stem from a variety of business areas and may cause major coverage gaps. Two such areas, sometimes overlooked, are business liability/propertyworkers’ compensation and . Consider the following scenarios and solutions: Business Liability Problem – Your firm hosts a reception where alcohol is served, and a tipsy client trips and … Read more