Cash earning TP

[ILLMAS]

As a preparer, have you ever turned away a cash earning TP because of the EIC due diligence?

 

MAS

[Pacun]

No. You ask them to write down how much they make every month and what expenses they have. If they have bank statements that's even better.

 

Then you prepare their taxes with that information.

Edited April 24, 2015 by Pacun

[mrichman333]

Nope, they have to give me their financial information in order to prepare the return. On the due diligences I check "Business Records".  Some people have spreadsheets, others Qbooks and some just numbers written on a piece of paper.  I am not a Auditor, it's not my job to do their books and make sure their numbers are the same as mine

[Lee B]

Since I do mostly business returns plus personal returns for the business owners, I don't do these returns.

Last year I turned away my last one, a hair stylist with numbers written down on paper.

I had done her return the previous two years and I noticed that her net income perfectly hit the max EIC sweet spot.

I told her that the new documentation requirements created more risk than I was willing to assume.

Later, I heard from an acquaintance, that she is now happily preparing her own return on Turbo Tax.

[RitaB]

I turned away parents of my kids' classmates. The wife once told me about their refund and how they didn't make estimated tax payments. I know their lifestyle cannot be supported by EIC level income. When she asked if I was taking new clients, I told her no. The kids get lots of grants to go to college, too. Don't get me started, this is rampant here.