Discussion:Best interest of client
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Discussion Forum Index --> Basic Tax Questions --> Best interest of client
Discussion Forum Index --> Tax Questions --> Best interest of client
| 9 June 2009 | |
| Hi Everyone,
I have a client who is 77 years old. She has a creep for a son who has started a restaurant in my client's name with all my client's money. Of course payroll and sales tax weren't paid last year. The son isn't my client and if he were, I'd fire him. I want to know if I am within my boundaries going to her daughter and telling the daughter what is going on with her mom's money? Or could I lose my license since I don't have permission? I'm not so much worried about my client doing anything as her son. The son can do no wrong in the mom's eyes. There is no bad relationship with the daughter, she just isn't taking all her mom's money. I'm going to go to my client and warn her of what could happen, but her financial planner has tried that. Most of her money is now gone, I don't want her in trouble with taxing authorities also. I hate to see what is heppening to this lady but don't know what I can do without going too far. Thanks for any input. | |
Wonder Woman USA (talk|edits) said: | 9 June 2009 |
| Your city may have an office that protects elders from abuse. I'd suggest you call them and tell them a "theoretical story" (no names) and see what they advise. | |
| 9 June 2009 | |
| The daughter probably already knows what's happening to some extent. You can't tell her.
All you can do is put in writing to your client the consequences of failing to withhold and pay over these taxes, i.e. the consequences to her personally. | |
| 9 June 2009 | |
| 1. Telling the daughter without consent from the client is a violation of the client's privacy and possible Circular 230 violation.
2. Depends on the type of license you have. You probably have a Circular 230 problem. 3. How is the company owned? Does your client receive a K-1? 4. You need to consult an attorney or your insurance provider. You may have more responsibilty than you think. | |
| 9 June 2009 | |
| Thanks everyone. I'm a CPA so I don't want to do anything to lose my license. I will put in writing what will happen to my client. The restaurant is held as a sole proprietorship.
Thanks! | |
| 9 June 2009 | |
| If it's a sole prop in your client's name, aren't you responsible for preparing the Sched C for her 1040? | |
| 10 June 2009 | |
| Do you know whether your client gave permission to the son to use the money, whose name are all the restaurant documents in? You definately cannot discuss this with any other member of the family but I would certainly clarify the details with my client to see whether this is a fraud or not. | |
| 10 June 2009 | |
| You know what, Anne, perhaps it would be best for you to distance yourself from the situation and resign as accountant.
I know this goes against your instinct to protect your client, and you hate to see what's happening to her, but when things go south, people like the son try to drag everyone in. Note to self - try not to care more about clients' money (and life) than they care about it themselves! Best of luck with this one. | |
