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Amending Returns When Not Original Preparer

Key tips and advice the working tax pro can use.
#1
Preppie  
Posts:
246
Joined:
6-May-2015 6:23am
Location:
Virginia
I have on many occasions amended a form 1040 that I did not originally prepare when someone brings me the original return and the document they forgot to provide the original preparer. "Hey, Preppie, I forgot to give my 1099-R to my preparer and now he's dead (or whatever). Can you amend this tax return?"

I look at the return, verify there is no 1099-R already on it, and then produce a 1040X with the 1099-R added in.

Today someone asked me to amend their 2016 1120S. I did not prepare the original. She gave me a copy of the original return and a copy of an invoice for ~$26K of goods purchased stating, "I forgot to give this invoice to my CPA."

It seems like a very bad idea for me to amend this return without seeing ALL the documentation for 2016. Would you amend with just a stray invoice, the original return, and her word it had been left off the original return?
 

#2
sjrcpa  
Posts:
1917
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
No. I would want to see the original trial balance, too. Then, to correct it for the $26K I would need to know how they paid for the 26K. Is cash on the trial balance wrong? Should there be a payable for the 26K? etc.
Last edited by sjrcpa on 8-Nov-2019 7:49pm, edited 1 time in total.
 

#3
Posts:
2764
Joined:
22-Apr-2014 3:06pm
Location:
WA State
For every amendment I prepare, I explain that when I sign it, I'm signing regarding everything on the return, not just the item being changed.
That's why some amendments are more costly than the original version.
~Captcook
 

#4
CathysTaxes  
Moderator
Posts:
1977
Joined:
21-Apr-2014 9:41am
Location:
Suburb of Chicago
I require all of the original documents used for the original return.
Cathy
CathysTaxes
 

#5
ATSMAN  
Posts:
1287
Joined:
31-May-2014 8:34pm
Location:
MA
My antenna goes up when a new client says they need to amend a return prepared by another preparer. My first few questions are:

1) Why, and did you discuss this matter with the prior preparer.
2) If the answer is no, then why not.

Depending on the answer I will either agree to do the 1040-X with full documentation reflecting the change or more than likely refuse to do it f it appears after the fact adjustments on flimsy grounds to get a refund.

When you amend a return it is not just the one item you are amending, it opens up the return for scrutiny for every line item that you may have absolutely no knowledge.

90% of the 1040-X requests are to include EIC or a dependent, because they either forgot about it or did not know and that should be a red flag! :roll: :roll:
 


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