NATP Seeks To “Audit-Proof” Tax Preparation Offices

The National Association of Tax Professionals has released Audit Proof the Tax Office, aimed at helping practitioners update their office procedures and best practices to reduce the chances of an unfavorable audit by the Internal Revenue Service.

 Gathering data from the client now requires documentation with regard to how it was gathered, who provided the information, proof of the accuracy of the information, and the hard copy retention of the entire substantiation, according to Audit Proof author Melinda Garvin, EA, RTRP.

“I’m continually surprised that my peers really believe they can continue doing business as they have for the past many years,” she added. “As an instructor in the accounting/tax profession, I’ve come across too many professionals unaware of the probable outcome from a visit from the IRS.”

Preparers’ tried-and-true engagement letters and organizers fail to meet today’s due-diligence obligation, Garvin maintains.

The book addresses communications with employees and tax clients, office procedures and policies, the outline and tools to customize a practice’s manual, and operating procedures “that will help you survive a ‘visit’ from the IRS.”

The book also includes a flash drive with more than 35 forms, many in PDF format, including clients’ questionnaires, tax client checklists, engagement and collection letters, templates of employee handbooks, and primers on office management and security, among others.

Audit Proof is $75 for NATP members, and $89 for non-members. 

Source:  National Association of Tax Preparers at http://www.napttax.com