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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I prepared a 2010 and 2011 Tax return (shouldnt say prepared,

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I prepared a 2010 and 2011 Tax return (shouldn't say prepared, just entered the amounts from his 1099's and expenses he gave me over the phone) and I was talking to him a few weeks ago (He finally hired a Tax CPA to start doing his books/returns) about his 2012 return and he said a few things that were disturbing. Basically his 2010 and 2011 expense #'s were estimated and they probably weren't right. I told him he should have his Tax CPA look at his 2010/2011 returns and file an amended return. I did not sign off on his return nor did I get paid to do his return. It took me 30 minutes to do on Turbo Tax. He had $20K in 1099's for 2010 and $37K in 1099's for 2011. It was a small return. I am a CPA but I am by far not a tax CPA..I did this as a favor for him. I am really concerned that if he gets Audited I would lose my CPA because his numbers are wrong. Am I liable here?

MyVirtualCPA :

Thank you for your question, and thanks for using JustAnswer.com

MyVirtualCPA :

The taxpayer is ultimately responsible for anything that is inside a tax return.

MyVirtualCPA :

If they represented to you the expenses, to your knowledge that was correct. It's ultimately on the taxpayer to be responsible for the contents

MyVirtualCPA :

Unless you helped the customer fabricate expenses, or knowlingly filed a false tax return, you will be fine'

MyVirtualCPA :

It's not up to the tax preparer to ascertain the correctness of the return...you just take what the client gives you

MyVirtualCPA :

So I would not worry in your situation.

Customer:

That is what I figured. To cover myself a little further I sent him an email stating that what was entered and if it was wrong he should amend the return. He never responded but I did tell him what he should do.

MyVirtualCPA :

Yes, just keep that email.

MyVirtualCPA :

Is there anything else that I can assist you with today?

Customer:

I did! I guess it is his word versus mine? I have the email as proof so that should cover me

MyVirtualCPA :

You should be just fine. The tax return is their responsibility, not yours. Also, if you wanted to read more about dealing with the IRS, I would suggest books by Dan Pilla

Customer:

Okay. I appreciate it. Thank you for your time.

MyVirtualCPA :

You're welcome. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

I will. Enjoy your day

MyVirtualCPA :

You too!

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