Discussion:Outsourcing
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Outsourcing
Wkstaxprep (talk|edits) said: | 24 January 2007 |
| Anyone have any concerns about outsourcing affecting our profession in an adverse manner ? | |
| 24 January 2007 | |
| What are you trying to outsource? Outsourcing itself has an adverse affect. | |
Wkstaxprep (talk|edits) said: | 24 January 2007 |
| I don't outsource anything, it just bothers me to see america outsourcing so many returns to foreign countries, especially large firms.
these firms make it seem like it's 100% o.k. but if it's so o.k. why dont they inform their clients that their returns are being prepared overseas by someone no one has even met ? | |
| 24 January 2007 | |
| If I'm not mistaken, the AICPA had passed a requirement (to be effective this year?)that clients be notified if a return is being outsourced. I'm not a CPA, and don't work in a Final Four firm, so don't take that as the gospel. | |
| 24 January 2007 | |
| When the Graham Leach Blilely Act (GLB) was passed a few years ago, all tax preparers (whether CPA, EA, certified or otherwise) had to get written permission from the client to disclose personal information to a third-party. That obviously included outsourcers whether domestic or foreign. The Big 4 changed the massive boilerplate attached to their engagement letters to disclose the sharing of personal information and the possibility of outsourcing as mandated by the law.
Smaller firms and sole practitioners generally added the appropriate paragraph to their engagement letters. Although from participating in various tax groups most small practitioners added a sentnence stating that although the client's information may be disclosed to third parties, the work would never be outsourced. The law has now changed such that CPAs are not subject to GLB. However, CPAs must still disclose under their state licensing board rules so nothing has changed pragmatically speaking. All other tax preparers are still subject to GLB. So why many may agree with the OP's sentiment about outsourcing, clients of the larger firms (and I would surmise clients of the vast majority of tax preparers) were properly notified and gave permission for the disclosure and possibility of outsourcing. BTW, if you e-file your clients' tax returns you need to have their written permission that you may disclose their personal information to a third party. | |
| 3 July 2008 | |
| Rev Proc 2008-35 Required disclosure for outsourcing | |
