Mistakes happen — we move too fast and overlook an entry field, or paperwork gets misplaced and doesn’t make it into the submitted tax return. The consequences are steep if you accidentally file an incomplete tax return, but you can safeguard yourself against this mistake by using a checklist.
As you complete your final review of a client’s tax return, use a detailed checklist to ensure the return is filed accurately and completely. For those clients who file tax returns for individuals, partnerships, S corporations, C corporations, or other tax scenarios, you can find a tax return checklist through the AICPA® Tax Section’s Annual Tax Compliance Kit.
H.R. 1, commonly referred to as OBBBA, ushered in some of the most sweeping changes to the U.S. tax code in recent memory. As clients continue to navigate its complexities, staying ahead is more important than ever. The Annual Tax Compliance Kit not only equips you with the checklists you need, but also includes customizable engagement letters, client organizers, and practical guides to streamline your workflow and support confident, informed client conversations.
Thoroughly inspecting each client’s return with a checklist underscores your due diligence and adds value for your clients.
Enhance your due diligence plan
When you sign a tax return, you are affirming under penalty of perjury that the return is — to the best of your knowledge and belief — true, correct, and complete. That’s determined through client-provided information, client interviews, proper application of tax laws and regulations, thorough review of prepared tax returns, acting with reasonable care and good faith, and adhering to professional standards.
Failure to complete due diligence could lead to a dissatisfied client, potential litigation, penalties for being negligent, and, potentially, losing your license. Because they help in discovering errors or omissions, checklists are an important component of your due diligence plan.
Checklists also can help new hires understand various tax law considerations for different types of tax entities; this makes them a great onboarding tool.
Work through tax season confidently
Practicing solid organization and efficiency can streamline your processes, minimize mistakes, and allow you to work through tax season with confidence. Incorporating a tax return review checklist is always good practice.
In addition to checklist templates, the Tax Section’s Annual Tax Compliance Kit can direct you through a more efficient tax season workflow with engagement letters, client organizers, and practice guides.
You can download an S corporation tax return checklist to sample what the Annual Tax Compliance Kit offers. Not a Tax Section member? Join the AICPA Tax Section today to access invaluable resources like the Annual Tax Compliance Kit.