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.

  1. Best way to protect yourself is good documentation.
  2. Make sure any document filed with the IRS discloses the required details and does not misstate or omit key information.
  3. 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.  
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