Discussion:Prepare for client audit
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Discussion Forum Index --> Tax Questions --> Prepare for client audit
PLN8981448 (talk|edits) said: | 5 September 2008 |
| I have prepared tax returns for 8 years and this is my first client audit. While going over items for review I noticed that I had overlooked a few items that will increase the tax due. I have informed client that I will assume responsibilty for interest/penalty. Should I bring this to the auditors attention at the audit before they notice or just concede when it is discovered and it will mostly be. Any other advice you can give me. The tax payers' spouse will be going to the audit with me. | |
| 5 September 2008 | |
| Go alone to audit. Never bring clients along. I would not bring up any overlooked items unless you are 100% sure it will be discovered. Remember most errors are already corrected with CP2000 form. You will soon discover how many items the auditors miss or do not care to look into. It is ok to say 'I'm not sure why that is there or where that amount came from. I will get back to you later after I look into that." during the audit. Good Luck. No longer a virgin! | |
| 5 September 2008 | |
| I agree - it's standard practice not to bring the client to an IRS audit, for many reasons.
Whether to bring the auditor's attention at the start to errors is a judgment call. Some would say that it could start the audit off on the right foot and give the impression that there's probably nothing else to find, & others will say let them find the errors. Last audit I handled I found unreported income of a few hundred dollars when I checked the business account deposits in preparation for the audit. I owned up at the start and ended up with no change - the auditor found no other problems & didn't want to bother to write up the small change. Good luck! | |
Death&Taxes (talk|edits) said: | 5 September 2008 |
| Is it an office audit or at your place? Is this a Schedule C? Schedule E? Or are we talking about Schedule A? Sometimes on Schedule C & E, the auditor might only ask to see certain expenses, and if it is Schedule C, they often like to get a feel for the business and the record keeping process before jumping in and selecting certain accounts to examine.
I like DZ's 'let me get back to you' approach. | |
Southparkcpa (talk|edits) said: | 6 September 2008 |
| Concur with all of the above. You have been given solid advice. | |
| 7 September 2008 | |
| without a profile we don't even know if you are QUALIFIED to represent a client without him present. | |
