IRS wants preparers to be their watchdog over you so here is where we cover our tail

Posted on December 20, 2010


You need to understand that when we prepare your return we are working from the summary information you give us without looking at the actual source documents.  If we see something that does not seem to make sense we have an obligation to dig deeper or else we can be penalized for preparing an incorrect return.  You are still ultimately responsible for your information but we may ask for additional explanation or detail from time to time.  You also need to understand we are preparing only your income tax return.  Unless we have separately agreed to prepare additional returns we are not taking responsibility for preparing 1099s, personal use tax returns, sales tax, payroll tax, excise tax for things like tanning beds, retirement plan notices, returns, etc.  We will be glad to work with you on these items but they are not a part of preparing your income tax return and we want to make it clear you are responsible for those items except where you have asked us to assist you with them.  The penalty this year for not filing 1099s is $100 each for 2010 and $250 for 2011 and there is now a separate late filing penalty which can range from $15 to $50 for each 1099 filed late so make sure you file all 1099s before the due date this year if you intend to do them yourself.

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