Expand the Signature Section

I wasn't planning to write anything more on tax preparer licensing for a while. I was going to ignore the recent emails I received from AICPA. But on my way in to the office today to work on extensions and books this idea popped into my head. (If someone has already written this, please let me know and I will acknowledge your idea. My extra blog reading has been limited due to extensions and 941s.)

AICPA is still focusing on the required licensing of everyone who makes a tax decision on the return, even if they do't sign the return. I covered this back in August. Now, AICPA is focusing on student interns/employees and how this will be a big issue for the students. I don't see it. Since these are the future accountants and CPAs, I think they would welcome being licensing as an advantage in the job market. I can't see why they should be excluded because who hired them. But I'm not trying to hold onto the status quo.

Many CPA firms use students and clerical staff for a lot of their tax work. My first tax class included a woman who had worked for a CPA for several seasons doing taxes but this was the first solid tax training she had received. Most of her prior training was done by another staffer, not the CPA. The CPA comes in to "review" and sign the return. The signature is their most important job. A client will look at the signature and assume the CPA did the return and earned the fee charged. How many clients will sit still for a CPA fee if they knew a student did most of the return?

So, is the licensing of staff and students a true concern or a smoke screen? Are CPA firms (or any firm who has many employees work on a return that is signed by the reviewer) willing to add some transparency to who did the return? My idea is to add a special page to follow the signature page which lists everyone who did anything on the return, their job title, what they did, how much time they spend on the return and what percentage is that of the total preparation time. I won't guarantee that I'll change my mind about giving staff and students a pass on licensing but I'll be less inclined to think it as a technique to keep the illusion and fees continuing.

 

Comments

[Nancy]

I think it's a good idea that everyone handling the clients case be licensed. They should also let them know who is handling their case, they should have it on file or their bill. It's not fair for the client to be tricked into believing that everything is good, then they end up owing the IRS. You get what you pay for, so it's your choice. To me getting generic medicine or dishwasher cleaner is ok but would you get half off surgery or half done taxes? I don't recommend it.