The Golden Rule: Disclose and Document
Practicing CPA, The › Vol. 28 Nbr. 7, September 2004
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Summary
Clients typically rely on their CPA to stay on top of tax issues and inform them of any important changes. Two areas of particular concern are tax amnesty programs and the disclosure of reportable and listed transactions. To generate additional funds, state and local governments have established income, sales and other tax amnesty programs to encourage delinquent filers and payers to clean their slates. Over the last few years, regulatory attention and publicity have been heavily focused on tax shelter arrangements and disclosures to the IRS. Most CPAs do not discuss tax shelter rules with clients because they have no reason to believe that client investments meet these criteria. Nevertheless, it is important to understand the requirements to file Form 8886 Reportable Transaction Disclosure Statement and explain the rules to clients.
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The Golden Rule: Disclose and Document
When it comes to tax return preparation, there are many filing requirements, laws and regulations to be aware of. As a result, clients typically rely on you, their CPA, to stay on top of these issues and inform them of any important changes - even if it isn't a clearly defined engagement responsibility.
Two areas of particular concern are tax amnesty programs and the disclosure of reportable and listed trans...See the full content of this document
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