In life, often the best way to learn something is from our own mistakes. In tax practice, that’s simply not an option. Mistakes can result in tax liabilities for clients and malpractice lawsuits against the tax professional. Don’t let this be you. In this program, we will attempt to learn from the mistakes of others to avoid making them ourselves. We will first review the legal standards relating to malpractice. Next, we will discuss a few “horror stories” involving tax practitioners whose lack of technical understanding and/or lack of common sense led them, and their clients, into disastrous situations. Tax practitioners are required to master complex technical issues in order to prepare returns and give planning advice. It’s a risky business. Take this opportunity to prepare yourself for a risk-free busy season with a few sobering cautionary tales.
- Legal standards applicable to establishing grounds for bringing a malpractice action against a tax preparer or tax advisor
- Defensive measures tax practitioners can take to mitigate or eliminate exposure to malpractice lawsuits
- Tax practitioner “horror stories” that illustrate what tax practitioners should try to avoid at all costs
- Understand the types of transactions that give rise to malpractice lawsuits brought against tax advisors
- Take steps to limit exposure to an action in malpractice brought by a tax client
Any tax practitioner wishing to be aware of the types of tax transactions that give rise to malpractice actions against tax advisors, and who wants to take steps to limit his or her exposure to malpractice lawsuits
A basic understanding of the tax rules relating to individual income tax