To Amend or Not?

[Crank]

Picked up a client this year and noticed that his prior CPA missed $10K in loss carryforwards so of course he had the accountant amend the 2010 return. Well, I just noticed that he also missed $5k in passive activity loss carries. I did a quick proforma and it would have had no impact on the return if it were included.

So should the return be amended for these losses even though they dont change anything? BTW, I would have him go back to his prior CPA to do amendment #2.

[jainen]

>>BTW, I would have him go back to his prior CPA to do amendment #2<<

BTW, why?

[Crank]

This client was extremely unhappy with the prior preparer and specifically wanted him to do the 1st amendment. Im sure he would also want to bring this back to him. I try not to get involved in client disputes with other preparers.

[BulldogTom]

I think it makes you look a little suspicious when you reviewed the return, sent him back, and then are sending him again. If it were me, I would be asking YOU why you did not see that PAL carry when you reviewed the return.

Just my 2 cents.

Tom

Lodi, CA

[Pacun]

I charge the client and I amend myself.

If it took you a while to discover the second mistake, maybe it wasn't the other preparer's fault. You don't know what papers were given to the previous preparer, how the interview went, how many years the previous preparer work for them, etc. You don't even know if these clients will stay with you or if every year they try a different preparer.

[Pacun]

I try not to get involved in client disputes with other preparers.

?

[JohnH]

I already have a couple of reservations about the client, based entirely on what has been posted about his disposition.

[jainen]

>>I try not to get involved in client disputes with other preparers.<<

It seems to me you are very much involved this time--in fact, you appear to be the driving force. Why don't you just show your new client how nicely YOU can fix the problem?

[Crank]

Pacun does make a valid point. I did miss the second omission on my first review and I do have reservations about even bringing it up.

Jainen, doing the amendment myself is still on the table and that appears to be the quickest and easiest solution. Ive already put too much time into the prior years return as it is and I just want to get past it at this point.