Megan L. Brackney received the 2016 Max Block Award Honorable Mention in the Area of Departments/Columns. This award was bestowed upon her for her contribution to the May 2016 issue of the CPA Journal "TPP | Filing Amended and Current Returns in Cases of Past Noncompliance: How Not to Make Matters Worse".
Read more below to view an excerpt for her award winning article.
"When a CPA discovers a taxpayer’s past noncompliance, there are both ethical and practical questions to answer. The last thing a CPA should want to do in this situation is turn a manageable issue into a serious problem. Although these issues have many nuances, there are some basic principles to follow in deciding how to address past noncompliance by clients and how to handle the filing of tax returns that are currently due.
What Ethical Standards Apply to CPAs When a Client Has Been Noncompliant?
There is no obligation for a taxpayer to file an amended tax return; there is such no requirement in the Internal Revenue Code (IRC), Treasury Regulations, court decisions, or other guidance. It may be to one’s advantage, however, to file an amended return to correct past noncompliance. Some methods for correcting non-compliance are discussed briefly below."
To read the full article, click here.