TY20XX wrote:What do you guys do when a non-client that self-filed by themselves or DIY software, request for a income verification/comfort letter to submit to their lender?
Absolutely not. Get them out the door ASAP. Waste of time. You can't charge enough for the risk.
TY20XX wrote:If we prepared the return we wouldn't charge the client...
Why not?
CornerstoneCPA wrote:And my "comfort letters" are so vague and turn everything back onto the lender. All they actually do is confirm that I prepared a tax return based on information furnished to me by our mutual client, and just as the tax returns indicate I did by being listed as the ERO.
Agree.
"Comfort letters" are just an attempt by the lender to have someone else to collect from should the deal go south.
The AICPA released a great FAQ on this issue (dated Oct 2013).