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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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I am a tax preparer in Florida and i have 2 clients being audited

Customer Question

i am a tax preparer in Florida and i have 2 clients being audited for prior years returns but they have lost records because of moving and losing records what should i do they are blaming me and i want to help and can i change a payment arrangement on taxes due. i really need to know how to respond to audits if clients cant find documents
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.
There is no choice - but all tax records must be reconstructed.You are not responsible to keep taxpayer's tax records - but at the time the tax return was prepared - you need to be sure that the taxpayer has adequate tax records.Here some articles with steps to reconstruct tax documentshttp://robergtaxsolutions.com/2011/05/reconstructing-tax-records-getting-your-ducks-in-a-row/Without any tax records - chances are that all tax benefits would be disallowed...Again as long as tax records existed at the time the tax return was prepared - you personally as a tax preparer is not responsible. However - if tax records were never provided - you may be held responsible fro damages - that generally include additional penalties and interest charges.You still is not responsible for client's tax liability.
Expert:  Lev replied 8 months ago.
.Regarding payment plan - that you may help your client to obtain...You don’t need to wait for IRS to send you a bill before you ask for a payment plan. The best way is to use the Online Payment Agreement tool on IRS.gov.https://www.irs.gov/Individuals/Online-Payment-Agreement-ApplicationYou can also file Form 9465, Installment Agreement Request, with your tax return. You can even set up a direct debit agreement. With this type of payment plan, you won’t have to write a check and mail it on time each month. It also means you won’t miss payments that could lead to more penalties.If you want to help clients - you might want to do that with no additional charge.Sorry for your situation.