Does a tax return preparer have an obligation to make inquiries of a taxpayer?
Yes, a tax return preparer must make inquiries of a taxpayer in order to prepare an accurate tax return. Inquiries may be general in some situations, such as asking questions about whether or not the taxpayer made charitable contributions or if they own their own home. These questions are crucial to determining whether or not the taxpayer is entitled to certain deductions. Similarly, the tax return preparer must make general inquiries or have existing knowledge of the taxpayer’s sources of income, such as whether or not the taxpayer received alimony, a refund of state taxes in the previous year, or received interest or dividends, and for Schedule C taxpayers, a more in depth discussion to include what accounting method the taxpayer uses. Tax return preparers should ask for taxpayer records where appropriate, such as asking for the previous year’s tax return or copies of depreciation schedules for Schedule C or E taxpayers or stock basis for Schedule D taxpayers. These are fundamentally
