Megan is a CPA practicing in Middleburg, Virginia. While preparing the tax retur
ID: 2421500 • Letter: M
Question
Megan is a CPA practicing in Middleburg, Virginia. While preparing the tax returns for her largest and most profitable client, she deducts automobile expenses that her client listed on the information organizer. The client left blank on the organizer the information necessary to complete part Iv of Schedule C, Form 1040 (“Information on Your Vehicle”). The client is currently fly fishing in a remote camp in Canada and specifically asked not to be interrupted unless it is urgent. Megan believes that he would be very annoyed if she called so she just left that section blank on the tax return. What SSTS sections would possibly apply to this situation? What would you recommend to Megan?
Explanation / Answer
The SSTS sections that would apply to the situation is certain procedural aspects of preparing returns. This is the obligation which a CPA have to verify if all the informations are correct and taxpayers have provided all the required information.
In this situation I would recommend Megan to contact the tax payer even though if he feels annoyed because it is the duty of the CPA to get all the information for preparation of tax return. This is because if the tax return is prepared when the CPA knows that the information is not adequate or missing. She should inform the taxpayer the obligations which will result of filing an incomplete tax return.