Tax pros tips to help you:
When the IRS goes after underpaid taxes, the taxpayers often blame their tax pros, according to an IRS official speaking at a recent conference. “Your clients won’t hesitate to throw you under the bus,” said the official.
- Best way to protect yourself is good documentation.
- Make sure any document filed with the IRS discloses the required details and does not misstate or omit key information.
- Document that clients were told everything they needed to know to make a decision. Including any recommendations against a particular course of action.
Tip: A simple letter or email to your client with the essential information should be enough to protect you from adverse actions by the IRS if a client tries to transfer the blame for underpaid taxes to you.