The importance of ethics for tax professionals

Ethics play a crucial role in the field of tax pros, as you are entrusted with handling sensitive financial information and making critical decisions that can significantly impact individuals and businesses.

By adhering to a set of ethical principles, you demonstrate your commitment to acting in the best interests of your clients and the public.

Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.   

Q: Do we have to return copies of records, such as the Form W-2 or Form 1099?

A: No, you do not have to return the copies. Generally, you are required to keep copies of those documents when there is withholding on them.

Q: As an EA, can I amend a prior year return I didn’t prepare and how?

A: Yes, you can amend a return you didn’t prepare. The taxpayer would need to provide a copy of the prior year return, and you would enter it into your software to duplicate it, then amend it from there.

Q: Can a censured preparer still prepare returns for a fee?

A: Yes. Censuring is a public reprimand and does not impact an individual’s eligibility to practice before the IRS.

Q: Do we have to give clients the general ledgers we prepare? Would they be considered workpapers?

A: If they paid you to prepare it, then they belong to the client.