Mistakes happen — we move too fast and overlook an entry field, or paperwork gets accidentally misplaced and doesn’t make it into the submitted tax return. The consequences are steep if you accidentally file an incomplete tax return, but you can safeguard yourself against this mistake by using a checklist.
As you complete your final review of your client’s tax return, use a detailed checklist to ensure the return is filed accurately and completely. For clients who are filing tax returns for individuals, partnerships, C corporations or another tax scenario, you can find a tax return checklist through the AICPA® Tax Section’s Annual Tax Compliance Kit.
Thoroughly inspecting each client’s return with a checklist boosts your due diligence plan and leads to added value for your clients.
Boost your due diligence plan
When a tax return is signed, you’re signing under penalty of perjury that the return is — to the best of your knowledge and belief — true, correct and complete. That’s determined through your client’s provided information, client interviews, proper application of tax laws and regulations, thorough review of prepared tax returns, acting with reasonable care and good faith and considering professional standards.
Failure to complete due diligence could lead to a dissatisfied client, potential litigation, penalties for being negligent and, potentially, losing your license. Checklists can be an important component of your due diligence plan and can help flag any issues.
Checklists are also a great onboarding tool for new hires to help them understand the various tax law considerations for different types of tax entities.
Work through tax season confidently
Practicing solid organization and efficiency can streamline your processes, minimize mistakes and allow you to confidently work through tax season — and incorporating a tax return review checklist is always a good practice.
In addition to checklist templates, the Tax Section’s Annual Tax Compliance Kitguides you through a more efficient tax season workflow with engagement letters, client organizers and practice guides.
Not a Tax Section member? You can download a C corporation tax return checklist to sample what the Annual Tax Compliance Kit offers. Join the AICPA Tax Section today to access invaluable resources like the Annual Tax Compliance Kit.