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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29964
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: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year 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 documents 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 1 year 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 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.