NECPA in NEBRASKA Posted September 5, 2013 Report Share Posted September 5, 2013 How do you ask your clients about sibling, parents, etc. ownership in other companies? It feels so intrusive to me to question clients about their family, especially ones that I know don't even get along with them. Maybe I am reading too much into the questions on the corporate and partnership returns. I don't mind asking a few of them. None of my clients has ever mentioned being asked for their info by other family members. Thanks. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted September 5, 2013 Report Share Posted September 5, 2013 If a certain tax issue required you to make a reasonable inquiry into that just ask it? It is not you that is being nosy, the IRS wants you to find that out. When we do the EIC due diligence questionnaire, I have many clients feeling a bit uncomfortable but I say I got to do it or they can't claim EIC. Quote Link to comment Share on other sites More sharing options...
TaxCPANY Posted September 8, 2013 Report Share Posted September 8, 2013 I know what you mean, NECPA; but, unless I'm allowed to 'pry' into such questions about *entities* co-owned by my client(s) and other family members -- as the 'pro' they expect/hired to "do due diligence" -- I wouldn't be the "trusted advisor" he/she should pay me to be. We're talking *property* here, not underpants. Please be prepared to recite IRC Sec 1563 and something in the 700's section about "attribution," in support of your 'prying' -- and to sound most professional. You have the 'weight of 'the law' on your side, to make these inquiries -- no matter how disingenuous you feel in doing so. And, you'd better make such inquiries, lest you expose yourself to accusations of negligence and misfeasance in future. It really could reach that unless you CYA. Too briefly, but truly, yours, TaxCPANY How do you ask your clients about sibling, parents, etc. ownership in other companies? It feels so intrusive to me to question clients about their family, especially ones that I know don't even get along with them. Maybe I am reading too much into the questions on the corporate and partnership returns. I don't mind asking a few of them. None of my clients has ever mentioned being asked for their info by other family members. Thanks. 2 Quote Link to comment Share on other sites More sharing options...
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