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It's kind of a delicate situation. You don't want a blast email/letter saying the old preparer made significant errors. The clients might think you're doing it wrong. I would first look at materiality and then handle the more significant errors individually when you meet with the client. Explain what you think the error was and ask the client if they want you to amend the return. You can't make them amend the return, and some preparers would fire clients who refuse to amend, but the ones who are getting refunds will see you as a hero. I actually had a somewhat similar situation and got a fair amount of amended work out of it, and it impressed the new clients that I knew what I was doing and I was thorough.

Yes, dear! As for Naveen - I agree with Abby and RitaB. Be respectful, make it sound like this is not usual but you've seen one or two, not surprising at his age, good for him for recognizing and stopping, but you're one of the "lucky" few and (for those who owe) we should fix this else you may well get a letter. Of course those owed refunds will be eager to amend. They will all think you walk on water, the refund people will be pleased as punch, the tax-owed folks will be glad to avoid the nasty-gram from Uncle Sam's tax boys, and no one will disparage the old preparer.

Totally agree with Abby. I normally do. (See what I did there?) For sure, you want to be respectful of previous preparer; nobody wins trying to outshine somebody else. This will be a great opportunity for you, and I'll betcha many of the clients won't be surprised at the errors. Be gracious, and yes, it will seem you are spending twice as much time as you should. Just part of it; they're gonna love you, Naveen.

I recently purchased a small accounting practice because the owner said that he was retiring. I am finding significant preparer errors which appears to be either lack of thouroghness in the preparation of return, lack of paying attention to details or forgetfulness. Half the errors are in favor of clients (Deduction given to clients who were not entitled to it, thus understating the tax due, half were missing clients deductions so client ended up paying extra tax.)a He is 76 years old and he has been in town practicing for over 20 years. It is a small town and he had a good reputation. He is telling me that he is suffering from short-term memory loss. While I sympathize with his medical condition My problem is how do I deal with the clients when 2-3 years down the line they will start getting balance due notices or get audited. giving him the returnback to him to amend is not an option because I don't think he is competent to do it any longer. I don't mind doing the work, I am just worried what to say to those clients. Thanks for any advice you can give me in this matter. Naveen Mohan

No. Non deductible commute expenses.

I have only two clients who qualify for small amounts of EITC. I have no problem doing them as they give me good records to work from and both are married couples. One brings the kids in with them and the other has no kids so that's not an issue. Anyone new - I doubt I would take them on. The requirements are far more than I want to deal with for anyone new.

I like your attitude. We know that some practices must prepare EIC returns in order to survive, so this isn't a subtle attempt to slam them. But I decided I simply can't charge enough to compensate for the penalty risk of preparing a return claiming EIC, especially when there's a Schedule C involved. So for many years my solution has been to refer them to HRB, while explaining that they need a preparer who is comfortable with those type of returns, has the deep pockets to cover any surprises, and can give them the quick turnaround most of them are seeking. Maybe things are trending that way with ACTC and AOC, although my gut feeling is that this credit by and large involves a type of client whom we don't have to second-guess and interrogate on every response. Or a client who has already visited one or two other preparers and has been coached on what to reveal and what to leave unsaid. (or as my father-in-law Sam Cook used, to say - "Somebody who knows how to play fast and loose with the truth".)