Ed Zollars, CPA <ezollar[at]mindspring.com> wrote:

- quote -

Actually, my point was that the questions on the forms DO
matter even though it might be impossible to find specific
statutory support for the question. In this regard, the
forms DO matter. Simply computing the correct statutory tax
liability on the back of a cocktail napkin would apparently
not meet applicable professional standards.

So, those (CPAs, at least) who ignore the forms do so at
their own peril. <g
MTW

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Michael T Wing CPA wrote:
- quote -

I'm reminded of W C Fields, I think it was, who said "I
wouldn't want to be a member of any club who would stoop so
low as to admit me to membership." Or words to that effect.

just kidding.

Christmas Cheer$,
Harlan Lunsford, EA n LA

============================================
Moderator: That quote is from Groucho Marx.
============================================

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Michael T Wing CPA wrote:
- quote -

In Arizona that wouldn't matter, as compliance with those
standards is "presumed" to indicate the level of care
expected of a CPA in tax practice. And, most likely, in the
courts in the state of Washington, in a case involving civil
liability, it arguably would be used to indicate what a
"reasonable" practitioner would have done, assuming the
taxpayer suffered some harm from a failure to answer the
question.

That said, the problem is that if you fail to make an effort
to obtain the information necessary to answer the questions,
there's a real question about whether you have done the job
you were contracted for--that is, to prepare the tax return.
As well, since you aren't supposed to involved in assistance
in evading the law, there'd be a real question of accepting
the engagement if you *were* engaged to prepare the entire
return but to not ask any questions about certain questions
on the return...

Note, as well, that the rule doesn't say you have to answer
the question--just that you need to make a reasonable effort
to obtain the information.

--
Ed Zollars, CPA
Phoenix, Arizona

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Ed Zollars, CPA <ezollar[at]mindspring.com> wrote:

- quote -

So, in other words, sometimes the forms DO matter! <g
My loophole, of course, is that I am not a "member."

MTW

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A.G. Kalman wrote:

- quote -

I would agree that there is likely a general obligation
since taxpayers would assume the preparer is going to advise
them on the items on the return.

As well, CPAs who are bound by the Statements on Standards
for Tax Practices (and that's both officially and
"unofficially" because courts could very well look there in
a civil case for what is "normal practice" for a CPA) will
find that paragraph 2 of Statement 2 notes that:

"A member should make a reasonable effort to obtain from the
taxpayer the information necessary to provide appropriate
answers to all questions on a tax return before signing as
preparer."

--
Ed Zollars, CPA
Phoenix, Arizona

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I saw a peek at the 2003 CA income tax forms. CA has now
joined other states by adding a line to all of their income
tax returns for payment of Use Tax. There are almost three
pages in the booklets on this subject. The instruction
booklets contain a table of rates by county and city where
applicable. The instructions explain a taxpayers obligation
to pay Use Tax on purchases from out-of-state sellers.
Unlike some other states, the instructions state that a
taxpayer "may" (my emphasis) report the tax on the income
tax return or they may elect to file a Use Tax return with
the CA BOE and send the payment directly to the BOE.

I believe the presence of the line on the forms does
obligate tax preparers to, at a minimum, inform the taxpayer
of its meaning and tax obligation.

--

Alan
http://taxtopics.net

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