Discussion:CPA letter for client insurance company

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

(Difference between revisions)
Jump to: navigation, search
Revision as of 05:37, 11 September 2009
TRcpa (Talk | contribs)
(Unless he's got)
← Previous diff		 Revision as of 13:09, 11 September 2009
Seaside CPA (Talk | contribs)
(It sounds like y)
Next diff →
Line 20: Line 20:
{{ForumReplyPost|UserID=TRcpa|Date=11 September 2009|Text=Unless he's got 1099s, 941s, or W2s I'm wouldn't put myself at unneeded risk. Just because he writes you a letter means little in my mind, you only know what you can prove and a letter from an owner doesn't do it for me. Freindship aside I find small business owners will say almost anything to get what they need which usually conflicts with your interest or risk.}} {{ForumReplyPost|UserID=TRcpa|Date=11 September 2009|Text=Unless he's got 1099s, 941s, or W2s I'm wouldn't put myself at unneeded risk. Just because he writes you a letter means little in my mind, you only know what you can prove and a letter from an owner doesn't do it for me. Freindship aside I find small business owners will say almost anything to get what they need which usually conflicts with your interest or risk.}}
 +
 +{{ForumReplyPost|UserID=Seaside CPA|Date=11 September 2009|Text=It sounds like you're talking about his workers comp. policy, whose premium is based on payroll and uninsured subcontractors. I would not write a letter. The client is required (per his policy) to have his books and records available for audit to determine premiums on w/c policies. Even if he has not filed his taxes, he should have check stubs available. 1099's & w-2's would help also.}}

Revision as of 13:09, 11 September 2009

Discussion Forum Index --> Tax Questions --> CPA letter for client insurance company

Floridacpa (talk|edits) said:

September 11, 2009
Hello

So a new client of mine running a security guard company called me regarding his insurance company. Apparantly his insurance company charges him based on the payroll - number of employees & independent contractors. He has not filed his taxes for the last 4 years - which is why he came to me, he is actually a good friend of mine.

The insurance companies for this industry now want CPA letters regarding payroll information. The last thing I want to do is expose myself to any liability...so I told him to write me a letter stating how many employees and independent contractors he has, so I can CYA if he is lying to me.

I'd like to say I can't do it, but since he is a good friend, it would be hard to say no, bad situation.

Has anyone dealt with this before? (note it is not a comfort letter for a mortgage lender).

Any advise as to format?

Thanks

TRcpa (talk|edits) said:

11 September 2009
Unless he's got 1099s, 941s, or W2s I'm wouldn't put myself at unneeded risk. Just because he writes you a letter means little in my mind, you only know what you can prove and a letter from an owner doesn't do it for me. Freindship aside I find small business owners will say almost anything to get what they need which usually conflicts with your interest or risk.

Seaside CPA (talk|edits) said:

11 September 2009
It sounds like you're talking about his workers comp. policy, whose premium is based on payroll and uninsured subcontractors. I would not write a letter. The client is required (per his policy) to have his books and records available for audit to determine premiums on w/c policies. Even if he has not filed his taxes, he should have check stubs available. 1099's & w-2's would help also.
Retrieved from "http://www.taxalmanac.org/index.php/Discussion:CPA_letter_for_client_insurance_company"