“Tax preparers, prepare to be sued. According to statistics gathered by professional liability insurance carriers, the most frequent source of malpractice claims are tax-related services. Not the most severe in terms of value of the claims – that distinction is held by audit and review services – but clearly the most common,” writes Jonathan S. Ziss, a partner in Goldberg Segalla’s Professional Liability Practice Group.
“Tax services are the most widely delivered CPA service. Most client engagements involve tax services, regardless of any other services that may be rendered. On a percentage basis, this is where most client interaction occurs, where the most time is spent, and where the practitioner has the most opportunity for unintended error or omission.”
In this article published by the Pennsylvania Institute of CPAs, Jonathan explores how, despite this exposure, tax practitioners can take a proactive stance. This article examines ways in which the CPA tax preparer may predict and then recognize the risk inherent in tax engagements, and take steps to mitigate that risk, in order to decrease exposure and increase peace of mind.