Hello there,
I just finished a busy season assignment at a local tax firm and would greatly appreciate some feedback regarding my future plans.
As a CPA, CFP, and EA with 10 years of experience in financial planning, fee-only investment management, and personal and business income tax preparation (4 busy seasons), I want to eventually work from home and prepare tax returns for other CPAs -- that is, I want them to "outsource" their tax return preparation duties to me. I have experience with Lacerte and ProSystem fx Tax, and it is my understanding that both software packages allow for remote work to be done via back-and-forth transfers of client files. I highly prefer this method of file transfer as opposed to use of remote desktop which seems to require the help of an IT person to get working properly (at least in my experience).
I am extremely comfortable with a paperless workflow so the workpapers I create would consist of Excel spreadsheets and PDF files to be included with each prepared return (along with a tied-out PDF copy of the return). Eventually, my goal is to also provide financial planning services to tax clients (working together with each respective CPA firm and/or working out a split-fee referral arrangement).
With regard to client confidentiality, I have researched the requirements for the CPA firm to obtain permission from clients before sharing their data. It is my understanding that I would qualify as a third-party provider of "auxiliary services" per IRC §7216 and CFR §301.7216-2(d)(1) which would preclude the CPA firm from the requirement to disclose the third-party relationship. I am not advocating any sort of secrecy around this, but I wanted to be sure that this was well within the bounds of the rules even in the event that no disclosure is made. As I would not have direct communication with clients, there would be no real way for me to confirm this disclosure anyway.
What am I missing? Is there anything about my plan that doesn't sound right? Would you consider such an arrangement for your firm? Why or why not?
Also, what is the best way to market this model to CPA firms?
Your feedback is greatly appreciated! And as a long-time lurker, I thank you for all of your insights, engaging discussions, and humor!