Discussion:What is our responsibility?
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Actionbsns (talk|edits) said: | 27 January 2007 |
| I've just been lurking around and reading various posts. I get a little concerned about what exactly is my responsibility as the tax preparer, and often, the only source of accounting adviser available to a client, as it regards things like maintaining the minutes of the corporation or making sure that requirements are met for documentation within the corporation. I will often make a recomendation to a client, but am I supposed to ask for the corporate book each year and review it? I was reading the MSSP on bars and restaurants this week and one of the things the auditor would want to see is the corporate notes. What if they are incomplete? Just asking and wanting some information. | |
Death&Taxes (talk|edits) said: | 27 January 2007 |
| Before the day of Internet or '800' number incorporating, a business lawyer would perform the task, calling speciality companies that did the actual work of researching name etc etc. At the end of the process, the lawyer would end up with the minute book, and supposedly keep it updated. Now the minute book comes with the package. To be responsible you would have to be invited to shareholder and board meetings, and in the minutes of these meetings you would be listed in attendance....this sounds funny since there might be one officer, but I think you should continue to tell them what should go in their minutes, and perhaps offer to write up the notes from meetings at the beginning of the year, for a fee. You would create proforma documents to which you would add the details. e.g., the Board of Directors met 1/4/07 and approved salaries in the upcoming year not to exceed $...... to its officer. However, watch out, you might be accused of practicing law. | |
| 27 January 2007 | |
| Remember, as a preparer, we are not auditors. You don't have to review their corporate book, or minutes, or even their invoices and bills. That being said...If client isn't sure if something is deductable, you will need to look at enough information to understand the expense to see if deductable. Or if corporation loans money to/from client you need to advise client as to correct documentation. I think that this is true with all items on the return, you should be advising your client what documentation is needed, how to document, and how long to save this documentation. | |
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