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If you look at prior year returns for a new client (I require them) you have a Circular 230 responsibility to inform your new client of errors and of the consequences of amending or not amending. You do not have to amend. The client does not have to file an amendment. (Depending on the errors &/or the potential client's attitude, I might or might not accept a new client who does not amend.) And, yes, you can charge for amendments. You do not have to audit (as an EA, I can NOT audit). You do have to notify if you know. Our standard is Know or Should Have Known.

I just thought I would confuse the situation. You can elect, on the final 1040 for the decedent to report all of the savings bond interest on their personal return. Sometimes, depending on the other income on that final 1040, this can be a significant savings. So you might want to consider amending the 1040 instead and reporting all of the interest accrued through date of death (which might be all the interest if the bonds have ceased to earn interest) instead of going to the 1041.

You should have some sort of company policy (in writing) that states if and when an employee would become eligible for any benefits offered by the company. For the record, part year full-time work does not constitute a full time employee - at least not where I work and play. You policy could be based on hours worked per year, years (or months) of service, etc. If you have such a policy, you should have no concern for getting into trouble.

It seemed obvious to me that Naveen is talking about people who will be his clients. The question of "how do I deal with the clients" when they get letters presupposes that the clients are going to be bringing the letters to Naveen because he is their preparer now. I don't think he is just calling all these people before they come in to see him. He mentions that he can't "give back" the returns to the seemingly incompetent and now retired preparer. My take on this is that Naveen is asking for our advice about what to do when these folks come in for tax prep in a few weeks. Tell them about suspected errors or no? I do believe Naveen has a duty to discuss suspected errors, and sure, he may find out things are not as dire as he thinks.

Just fill it out with phony information.

http://www.forbes.com/sites/robbmandelbaum/2016/12/14/repealing-obamacare-just-got-harder-thanks-to-small-business-relief-in-21st-century-cures-act/#3fd8576447b0

Don't worry about the 2015 1041 checked final. Report and file for 2016 and check final.

I think you'd prepare an amended 2015 return, unchecking the "final return" box and checking the "amended return" box. In the interest of full disclosure, I didn't search very long for an answer, nor did I find this situation addressed, but this seems logical. That's about all I got.

Sounds like a good idea to automatically file extensions but use them only for the federal filings. We always waited a few weeks after issuing W2s and 1099s to file the federal and state because invariably some recipients would call to say their address/SS#/amount was wrong. On the other hand, since the purpose of the earlier deadline is to allow IRS matching before refunds are issued, would filing an extension and delaying federal reporting hold these clients' refunds until the 941s are filed?

A friend/colleague just emailed his favorite CPE company: http://www.apluscpe.com/

It is not your obligation to advise the clients of your opinion of previous errors on previous tax years. Therefore it's not your obligation to amend any previous years unless the client requests it. My advice would be to deal with any problems if and when they occur. You make waves in a small town and you lose.