The client interview is just as important as the actual preparation of your clients’ return. The questions you ask are almost just as important as their answers. The interview and their responses can give you cues from what to expect from your clients throughout the remainder of the year and if you need follow up about anything on their current return.
Below, you’ll find a few of the top questions from a recent webinar on this topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you’ll have access to the full recording and the entire list of Q&As.
Q: Are §7216 notice and privacy policies required even if you don’t offer bank products?
A: Yes. The regulations under §7216, Disclosure or Use of Tax Information by Preparers of Returns, gives taxpayers greater control over their personal tax return information. This limits the use and disclosure of information tax preparers obtain during the return preparation process to activities directly related to the preparation of the return.
Q: Do you keep documents on file that allow one spouse to sign for the other spouse?
A: Yes, keep documentation for the tax year that the spouse would sign the return for the other spouse.
Q: Can you explain the term “custodial parent”?
A: A custodial parent is the parent the child spent the most nights with during the year. The custodial parent can change every year depending on which parent had the child for the most nights during that year.
Q: Is a birth certificate required for claiming dependents?
A: Though it is not required, it can be a good document to have for due diligence purposes.
Q: Do we have to ask clients whether they have assets outside the United States?
A: Yes, the questions on the bottom of Schedule B need to be answered.
To learn more about performing effective client interviews, 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 join our completely free 30-day trial, visit 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. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.