joanmcq Posted June 4, 2008 Report Share Posted June 4, 2008 The firm I work for (not a CPA firm) has assigned me to work on an OR correspondence audit. I am licensed in CA, and would be working from CA. I researched the requirements to be on Power of Attorney in OR, and I am not licensed in OR, but could file for substantial equivalency. My firm wants me to just send in the POA w/out the OR licnense number just to see if they send it back or if it goes through. Others in the firm have done so, but are EAs, not CPAs. I am having ethical doubts about the legitimacy of this, and don't think I can 1) hold myself out as a CPA w/o an oregon license (although its not clear if that is the case if I am not physically present in OR) & 2) if I don't put CPA on the POA, that knowing I am not licensed in OR is enough to prevent me from ethically submitting a request to be a representative knowing that I don't qualify. Any thoughts from either the OR or CA sides, or just in general? Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted June 4, 2008 Report Share Posted June 4, 2008 Do you prepare out-of-state income tax returns without being licensed in the state you are preparing the returns for? Quote Link to comment Share on other sites More sharing options...
joanmcq Posted June 5, 2008 Author Report Share Posted June 5, 2008 Yes. But only OR, CA & now MD have ANY requirements for licensing for tax prep. and even OR states as long as you do not advertise or solicit OR returns, and do not prepare them IN OR, a CPA is allowed to do so. So, for example, if one of my clients moves to OR, and I continue to prepare his returns, I'm ok. If I solicit an OR resident or hold myself out as being an OR preparer, I am not ok. Representation standards are different. To represent on a return you did not prepare, you have to be licensed. Quote Link to comment Share on other sites More sharing options...
jainen Posted June 5, 2008 Report Share Posted June 5, 2008 >>My firm wants me to just send in the POA w/out the OR license number just to see if they send it back or if it goes through<< Suppose you do slip it by a sleepy clerk--aren't you setting yourself up for a malpractice claim? I don't know what your engagement letter says, but if you fail to achieve desired results the client can easily show you were not qualified for Oregon representation. Even if you win, the client can say you breached confidentiality because you had no legal access rights and no right to tell the state tax people anything. Quote Link to comment Share on other sites More sharing options...
Daune/CA Posted June 5, 2008 Report Share Posted June 5, 2008 >>My firm wants me to just send in the POA w/out the OR license number just to see if they send it back or if it goes through<< I get the impression that even though you are not a CPA, or EA, that there are EA's in the company. Would it not be better for the company to assign this to an EA (or CPA) and have you set to handle as an Assistant to the one assigned? That way there should be no ethical problems, to my way of thinking, and you could still use your expertise in the field. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 5, 2008 Report Share Posted June 5, 2008 Daune, I think Joan IS a CPA, which is why she is concerned about this issue, which would not be an issue for her if she were not a CPA. She is questioning leaving off the CPA on the POA, you notice. Joan, I really do not see it as a problem for you to represent them if you prepared the return. If you did not prepare it, then I think you have to get a waiver or file for substantial equivalency. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted June 5, 2008 Report Share Posted June 5, 2008 Joan, I really do not see it as a problem for you to represent them if you prepared the return. Don't see an problem here either. If you have concerns though, provide Full Disclosure and indicate that you are CA licensed. When I practice "Federal Tax Law" in Nevada with my IL license, I always add "Illinois Licensed Attorney". Then if the State has an opportunity to tell you that you can not represent the taxpayer. If they indicate later it is an issue, it will most likely be an agent that won't accept your POA, but pretty unlikely that it will come back to haunt you. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted June 5, 2008 Author Report Share Posted June 5, 2008 I did not prepare the return. The firm I work for mostly represents DIYers. If I did prepare it, (an out-of-state preparer can prepare returns if they do not advertise in oregon, work in oregon, or hold themselves out as being licensed in oregon) there would be no problem with the OR representation, since that is one of the exceptions to the requirement to be licensed. There would not be a problem if this was a federal issue either, since I can represent an Oregon resident on a federal issue. Its an OR POA, for an OR audit. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted June 5, 2008 Report Share Posted June 5, 2008 I did not prepare the return. The firm I work for mostly represents DIYers. If I did prepare it, (an out-of-state preparer can prepare returns if they do not advertise in oregon, work in oregon, or hold themselves out as being licensed in oregon) there would be no problem with the OR representation, since that is one of the exceptions to the requirement to be licensed. There would not be a problem if this was a federal issue either, since I can represent an Oregon resident on a federal issue. Its an OR POA, for an OR audit. Sounds like you should not do this then. I do have one additional suggestion though. Call the Department of Revenue in Oregon and ask them if they would accept you POA under the circumstances. CAVEAT - Remember how often IRS gives out bad answers and the States are probably worse. Still it might help. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted June 5, 2008 Author Report Share Posted June 5, 2008 >>My firm wants me to just send in the POA w/out the OR license number just to see if they send it back or if it goes through<< Suppose you do slip it by a sleepy clerk--aren't you setting yourself up for a malpractice claim? I don't know what your engagement letter says, but if you fail to achieve desired results the client can easily show you were not qualified for Oregon representation. Even if you win, the client can say you breached confidentiality because you had no legal access rights and no right to tell the state tax people anything. Thank you for this. It is very easy for me to get licensed under substantial equivelency, but I guess the firm doesn't want to spend the $100 to do so. Their lackadaisical attitude is very annoying and frustrating. You would think they would jump at the chance to get someone easily licensed to rep in Oregon (EAs need to pass the OR part of the LTC exam, and there are only two CPAs working here, moi included), but this does not appear to be the case. My direct supervisor supports me in this however. And luckily, I am taking the CalCPA ethics course tomorrow in Modesto, so I will pose the question directly, and hopefully come back with something whereby I can either get them to support me in this, or I can decline the case or just file it myself. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 6, 2008 Report Share Posted June 6, 2008 Seems your firm is taking a very short-sighted view of this. Once you are licensed there, you could then handle any OR issues for them. $100 is small change for that right, seems to me. Plus, I do not doubt that they can work it into the client's fee. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.