Discussion:Banks calling to confirm self-employment
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| See, completely ambiguous and I believe gives myself no culpability.}} | See, completely ambiguous and I believe gives myself no culpability.}} | ||
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| + | {{ForumReplyPost|UserID=Taxea|Date=10 June 2009|Text=Doesn't a copy of the SCH C mean that the client is claiming to have self-employment? And with the new IRS laws on confidentiality and the need for waivers to be signed, I no longer deal with third parties. I tell them that they should ask the client for a copy of their tax return and if the client doesn't have one then he/she should be instructed to get one from their preparer. This way I am giving the third party advice and not disclosing that the client is in fact mine.}} | ||
Revision as of 06:29, 10 June 2009
Discussion Forum Index --> Basic Tax Questions --> Banks calling to confirm self-employment
Discussion Forum Index --> Tax Questions --> Banks calling to confirm self-employment
| 3 June 2009 | |
| For the CPAs out there, if a bank calls to confirm self-employment of a former client (2+ years ago), what can you tell them?
Is it OK to say I am no longer their CPA? Or is that disclosing confidential information? | |
| 3 June 2009 | |
| I would tell them you are unable to answer that question without permission from the client. If ex-client wants you to disclose it, then get disclosure authorization from client. Even then, I'm not sure you are required to disclose anything -- you can always tell the client you are no longer their accountant -- their new accountant should take care of all disclosures and not you. | |
| 3 June 2009 | |
| Do they want to know if he was self-employed 2 years ago, or self-employed today?
Never mind. I take this attitude toward my phone and my Email: I pay for it. I don't feel any need to fret about what a bank may want just because they ring me up on the phone. For all you know, they could be investigating fraud against your former client because they are not required to tell you the truth at all. It could be a pretense call to gather dirt. The bank can well afford to hire a private investigator, let them hire one. | |
Wonder Woman USA (talk|edits) said: | 4 June 2009 |
| Some dimwitted person from Wells Fargo called me on one of these a couple of months ago...they wanted to confirm employment.
I told her I could not confirm that I have a client with this name without permission from the taxpayer who was seeking a loan. She said "but all the accountants are giving us this information." Yeah, right! Three weeks later, I got a faxed permission (the bank's form) with my client's signature) and a questionnaire, which wanted to know my client's occupation, employer, and how long she had been employed there. Well, she's self-employed ..that form just did not fit the situation, and wrote that in on the form.... along with my standard "I didn't audit this person's info and if you're really concerned, I suggest you do an exploration of her 1040." Weeks later I got a call from another person at Wells Fargo, asking why I hadn't answered their query. <sigh> | |
| 4 June 2009 | |
| Mine, too, was from Wells Fargo.
I told them that I am no longer their CPA and after they asked, I told them the year of the last return that I prepared. The person said that the loan application will be sent back. After hanging up the phone, I thought that maybe I said too much. Should I have told Wells Fargo that I cannot comment without my client's permission, even though they are no longer my client. When does client confidentiality end? | |
| June 4, 2009 | |
| Wells Fargo has been busy. I received a call as well, although my client called me first to tell me they would be calling. It was no big deal -- they were just checking the incorporation date and ownership percentages, both of which I agreed were on the return. | |
| 6 June 2009 | |
| I tell them I cannot confirm or deny whether the person is or was my client without a signed waiver for the information they are seeking. It is not my job to get the waiver signed if they want the info it should be requested on their letterhead waiver and signed by "their" client. | |
| 6 June 2009 | |
| I have a policy that I do not deal with third parties. I supply my clients with data that they can then in turn provide to third parties. | |
| 7 June 2009 | |
| Swflacpa As do we all...a copy of the return and it never ceases to amaze me how they tend to call and as for a copy to be sent to their broker or whomever. As a result I am now charging 50. per additional copy.
The question I ask the third party is "how can I verify the self-employment. All I know is what the client tells me." If the client provides me with self employment income and expense that's all I know. | |
| 9 June 2009 | |
| I like your idea of charging for the copies TaxEA. I have a particular client who thinks I am an on-call Kinko's. | |
| 9 June 2009 | |
| I'm with Taxea. How are you supposed to be a good source of information? The client tells you they're self employed, and that's probably all you know. Giving them a response that confirms self-employment would seem to open you up to some sort of attestation liability.
Send a copy of provided returns (if the client gives you permission), and that is all. | |
| 9 June 2009 | |
| I've written letters to banks for this same situation. I have never stated that the person is self-employed, only that I have prepared tax returns for the individual. I would never state anything within the letter that could be taken as an absolute.
Here is the wording in one of my letters. This letter is in response to our conversation regarding Client XXX. Please take this as notice that we have been Ms. XXX's accounting firm for the past few years and in that time have been aware of her filing her taxes as a self-employed individual during that time. Should you have any questions regarding the foregoing, please feel free to contact me at 5XX-XXX-XXXX.
See, completely ambiguous and I believe gives myself no culpability. | |
| 10 June 2009 | |
| Doesn't a copy of the SCH C mean that the client is claiming to have self-employment? And with the new IRS laws on confidentiality and the need for waivers to be signed, I no longer deal with third parties. I tell them that they should ask the client for a copy of their tax return and if the client doesn't have one then he/she should be instructed to get one from their preparer. This way I am giving the third party advice and not disclosing that the client is in fact mine. | |
