Tax Practice
Office Policy
Manual
Date of Policy Adoption:____________________
Company Name
Tax Office Policy and Procedures
Table of Contents
Page #
I. About the Company
Mission Statement 5
Services Provided 5
Commitment to Service 6
II. Operational Policy
Confidentiality 7
New Clients 8
Existing Clients 9
Fees 9
Collection Policy 9
III. Advertising
Conformity with Circular 230,
Federal Code of Regulations 10
Ethical and Professional Conduct 10
IV. Tax Preparation Policies
Response to Questions via Telephone 10
Client Organizers 11
Client Provided Data 12
Appointments 13
Walk-ins 13
Drop Off Returns 13 Pre-Scheduled 13
Payment for Services 14
Complaints 14
Preparation of Tax Returns
Qualified Preparer 14
Interviewing Taxpayers 15
Input of Data to Tax Program 15
Checking of Return 16
Due Diligence 16
Incomplete Returns or Data 16
Information submitted Too Late to
Be Handled Timely 17
Extensions 17
Retaining Client Files 18
V. Taxpayer Representation Services
Contract Requirements 18
Form 2848 Power of Attorney 19
Form 8821 Authorization to Disclose 19
Other Issues 19
VI. Electronic Filing Policies
Encouragement to Efile 20
Direct Deposit 21
Submissions to IRS 21
Client Records 21
Avoiding Refund Delays 21
Electronic Signatures
Client
ERO
Rejected Tax Returns 21
VII. Paper Filing
Encouragement of Client 22
Preparation of Paper Return 22
Acknowledgement to IRS 22
Statement from Client 22
VIII. Employment Policies
Employment Agreement 23
Analysis of Employee Ability 23
Training and Supervision 23
PTIN Requirements 24
Credential of Preparer 24
IX. General Tax Office Policies
Appointments 25
Client Files 25
Wait Time 25
Late Clients 26
Extended Appointments 26
X. Special Issues
Treatment of Taxpayers and Clients 26
Calls for “Free” Tax Information 26
Accommodations for Senior and
Disabled Clients 27
I. About the Company
Mission Statement
The Mission of (Company’s Name) is to provide exceptional tax preparation services to the business and general public in the preparation of various business and personal tax returns inclusive of but not limited to Form 1040, 1041, 1120, 1120S, 1065, 990 series and other returns.
In its Mission, the company will become a leader in the tax preparation business; known for its stalwart commitment to ethics and professional conduct.
Taxpayer Representation Services will also be included in the practice of the firm; the mission of which will be to provide quality, zealous representation of taxpayers before the Internal Revenue Service and other authorities as permitted by law.
This firm is committed to educating taxpayers as to the laws concerning federal, and if appropriate, state taxation in order that they better understand their requirements and obligations to file complete and accurate tax returns.
Services Provided
(Company’s Name) will provide all goods and services in the normal course of the tax preparation business. The company may also provide related services such as electronic filing of tax returns.
A tax preparation contract outlining the contracted services of (Company’s Name), may be provided, at the preparer’s discretion, for the client to sign.
Representation services are a separate function from tax return preparation and taxpayer’s will be verbally and in writing informed of the additional charge for representation services should the need arise.
Taxpayer Representation Services will include a contract outlining the contracted services of (Company’s Name).
Additionally (Company’s Name) reserves the option of providing other services to its clients as the needs dictate.
In providing other services, (Company’s Name) will provide tax preparation clients the “Authorization to Use” statement before soliciting them for other services.
Commitment to Service
(Company’s Name) is committed to performing outstanding service to its clientele.
Our clients’ best interests will always be demonstrated in the preparation of their tax returns, ensuring that while all requirements of the Internal Revenue Code and Regulations are properly reported on their returns, no legitimate deduction or credit will be omitted, ensuring that our clients will pay their lowest legal amount of tax.
If a potential of conflict should appear in representing more than one client, this potential of conflict will be brought to the attention of the multiple parties. Should all taxpayers in the potential conflict agree to the representation of the preparer or representative, a disclosure of potential conflict will be signed by all parties and retained in the files of the firm for a minimum of three years in accordance with Section 10.29 of Circular 230 Federal Code of Regulations.
It is always at the discretion of the firm and specific practitioner whether or not to accept the engagement with consideration of representing all parties zealously and with quality representation.
II. Operational Policy
Confidentiality
It is the express policy of (Company’s Name) that all client information, written and verbal, be held with the utmost confidence.
Client files will be kept under lock and key during non-office hours so that cleaning staff and others not authorized will not have access to the information.
Current working files will be stored and not easily accessed during the work day when other clients may visit offices where the files are in current work product status.
Clients will be given the Privacy Policy of (Company’s Name) on an annual basis, in writing, if so required by the Graham, Leach, Bliley Act.
Employees will be bound by the same confidentiality policy of the company and will retain the confidentiality provisions of employment when they are no longer employees of the firm.
Independent contractors of the firm will also be required to maintain the confidentiality provisions of their contract with the firm.
It is the policy of (Company’s Name) should a company be engaged to shred or otherwise dispose of records belonging to the client, the company engaged to perform such service will provide the firm with documentation of the destruction of the client’s records in accordance with client confidentiality. These records will be maintained by the company for a minimum of three years from the date of the destruction.
Should a storage company be engaged to retain records for (name of Firm) including records belonging to their client’s both past and current, the firm will maintain the storage facility for these records in a safe and secure environment with the confidentiality of the client maintained.
Email communications to and from clients will be maintained with the highest degree of confidentiality with the firm and its employees.
New Clients
New clients will be told verbally and in writing of the privacy policy of the Company and questions will be respectfully and completely answered to their satisfaction.
Existing Clients
Existing clients will be notified annually, in writing, of the privacy policy of the Company. Any changes to the existing policy will be clearly indicated in the written statement of policy.
Fees
Fees will be established under any manner so authorized, including but not limited to:
· Hourly fees
· Form fees
· Time to prepare
· Contracted amount
· Other
Published fees will remain in effect for 30 days from date of publishing in accordance with Circular 230, Federal Code of Regulations – Fees.
Collection Policy
(Company’s Name) will, as a general rule, require payment at the time of service.
Additionally, retainers may be required on a case by case basis.
If taxpayer has requested additional time to pay the fee for services rendered, only the principal of the company may approve such delay in payment.
III. Advertising
From time to time the company may engage in local advertising.
Should advertising be conducted by U. S. Postal Service mailings, the envelopes will indicate clearly that the mailing is an advertisement of the Company’s services.
Conformity with Circular 230 Federal Code of Regulations
All advertising will be truthful and honest in conjunction with the requirements outlined in Circular 230, Federal Code of Regulations.
Ethical and Professional Conduct
Neither (Company’s Name) nor any of its employees will engage in providing misleading information.
Honesty is the cornerstone of service to the public and our clients can expect and depend upon complete honesty and fairness from (Company’s Name).
IV. Tax Preparation Policies
Response to Questions via Telephone
Questions from current tax clients will require a review of their prior year tax returns before answering. Only qualified return preparers may answer taxpayer questions. This is not a function of the receptionist at (Company’s Name).
“If it is deductible, why can’t I deduct it?” will only be answered regarding the specifics of the client. Largely questions of a complex nature require an in-depth analysis by the return preparer and questions asked of the client. These are best addressed by the preparer in the office that has the
most knowledge about the tax issue and acquaintance with the particular tax situation of the taxpayer.
Communications with taxpayers by email and other electronic means will be documented and retained for potential future reference. Notes, concerning communications, will be retained in the client files.
Occasionally, non-client telephone calls are taken with questions about tax. Because tax answers are very specific to the tax situation of the taxpayer, (Company’s Name) will not provide answers to tax questions. The receptionist for (Company’s Name) will refer the calling non-client individuals to the IRS for assistance.
Client Organizers
Clients will be encouraged to complete a client organizer prior to their tax preparation appointment.
Interviews with the client, in person or on the telephone, will verify information, and notes in the preparer’s own hand will be indicated as such on the organizer.
In the case of a client provided organizer, it continues to be prudent, as the preparer, to ask for verification of certain deductions, exemptions and credits.
Client Provided Data
If the client has not provided a completed organizer – the interview time must be sufficient to enable the return preparer to prepare both a complete and an accurate tax return for the client.
Copies of all provided documents will be maintained in the client’s file. These documents should include all pertinent information for the preparation of the return or for representation purposes.
If the client’s file is maintained electronically, the receipts and documentation will be electronically scanned and stored in the client’s electronic file.
Clients will be asked to provide the firm with the following information in order that proper maintenance of their tax filing requirements can be met:
· Power of Attorney
· Medical Durable Power of Attorney
· Last Will and Testament
· Appointment of Guardian
· Appointment of Conservator
· Other documents as deemed appropriate by firm
Clients will be encouraged to seek legal advice from a competent attorney to secure the documents needed to ensure their filing capability during incapacity.
Appointments
Appointment scheduling will be done by each individual return preparer, who will notify the receptionist of scheduled appointments.
Sufficient time to complete the return will be scheduled with a slight break in between appointments.
At the beginning of each day a complete appointment schedule will be provided the return preparer(s) by the receptionist in order that the day flows smoothly. Cancellations taken by the receptionist will be promptly sent to the return preparer.
Walk-Ins
Clients, new and existing, who appear without an appointment, will not be seen unless there is a cancellation or additional time afforded a return preparer.
Drop Off Returns
Drop off returns will be logged into the preparation rotation by the receptionist, promptly secured and if there is a particular return preparer in the firm assigned this return, will be notified of its receipt.
Pre-Scheduled
Pre-scheduled appointments will be kept at the time designated. No walk-in client or drop off return will take precedent over the pre-scheduled appointment.
Payment for Services
Clients will be asked for payment at time of service, meaning when the tax return is delivered to them.
If a retainer is required, due to the complexity of the return, newness of the client or for other reasons, the retainer will be accounted for and time against the retainer will be kept. The retainer will be exceeded before an additional retainer is requested of the client.
Complaints
Complaints from clients of (Company’s Name) will be referred immediately to the principal of the firm and handled directly by him or her with the client.
Should the complaint be found to be valid, proper and immediate action by the principal will be made which may include immediate dismissal of the employee involved in the complaint.
Preparation of Tax Returns
Qualified Preparer
All returns prepared by (Company’s Name) will be prepared by qualified return preparers.
All preparers who prepare a substantial part of any return will be required to have a PTIN, Practitioner Identifying Number issued by the Return Preparer’s Office of the Internal Revenue Service.
All preparers will go through an extensive training consisting of practice and procedure with a particular emphasis on current year tax changes, credits, particularly the Earned Income Tax Credit, and other related issues.
Return preparers will not prepare returns for which they do not possess the particular knowledge or skill in return preparation.
Interviewing Taxpayers
All taxpayers will be interviewed before the preparation of the tax return, clarifying issues, broaching new issues and with the attempt to resolve any questions regarding the reporting of income and expenses on the tax return.
A completed organizer is not a replacement for an interview.
Interviews may be done in person, on the telephone or through other electronic media, such as email.
The interview will consist of the in-depth questions required to prepare a complete and accurate tax return for the client.
Input of Data to Tax Program
Information resulting from the Organizer or direct information from the client, including the interview, will be transmitted into the tax program used by (Company’s Name).
Every attempt to enter the data correctly should be made with a cross check for accuracy.
Checking of Return
Firm members assigned the function of checking the data entry on forms of the tax program are empowered and encouraged to ask questions as to the correctness of entries made on the tax return.
Precise information may be gathered in reviewing the prior year tax return and other sources.
Due Diligence
At every step of the tax preparation process Due Diligence is to be observed and practiced.
The real test of due diligence is that the preparer believes they have prepared a return that is both complete and accurate and a correct representation of the taxable income of the client for that year.
Preparers are encouraged to ask questions of the principal should something be unclear either in content or representation on the tax return.
The firm will carry Errors and Omissions Insurance on members of the firm, self-insuring at the last resort should any error be made by the firm’s practice creating a liability.