Ethics play a crucial role in the field of tax pros, as you are entrusted with handling sensitive financial information and making critical decisions that can significantly impact individuals and businesses.
By adhering to a set of ethical principles, you demonstrate your commitment to acting in the best interests of your clients and the public.
Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.
Q: Do we have to return copies of records, such as the Form W-2 or Form 1099?
A: No, you do not have to return the copies. Generally, you are required to keep copies of those documents when there is withholding on them.
Q: As an EA, can I amend a prior year return I didn’t prepare and how?
A: Yes, you can amend a return you didn’t prepare. The taxpayer would need to provide a copy of the prior year return, and you would enter it into your software to duplicate it, then amend it from there.
Q: Can a censured preparer still prepare returns for a fee?
A: Yes. Censuring is a public reprimand and does not impact an individual’s eligibility to practice before the IRS.
Q: Do we have to give clients the general ledgers we prepare? Would they be considered workpapers?
A: If they paid you to prepare it, then they belong to the client.
To learn more about ethics and due diligence requirements of tax preparation, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial at natptax.com/explore.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.