Vince Nardone: Tax and Controversy

Suspect Fraud - Turn in Your Clients the IRS Says!

The Internal Revenue Service today solicited tax professionals to turn in clients and others if we suspect fraud is occurring.  See the attached materials from the IRS.  The IRS even provides us with instructions and forms on how to do so.  But, as tax professionals we need to be very careful and take into consideration or legal and ethical obligations to our clients and to our profession.  We certainly do not advocate or encourage any misconduct on behalf of our clients.  On the other hand, should we be the ones turning them in?  It depends, on your position and role with that client.  As a tax attorney, I cannot see to many instances where I would be doing so.  But, tax accountants must look at this from a different perspective and, in some instances, maybe required to inform the authorities of the wrong doing.  All I can say is seek competent tax counsel experienced in these type of matters before doing so.

Download DOC003

Suspect Fraud - Turn in Your Clients the IRS Says!

The Internal Revenue Service today solicited tax professionals to turn in clients and others if we suspect fraud is occurring.  See the attached materials from the IRS.  The IRS even provides us with instructions and forms on how to do so.  But, as tax professionals we need to be very careful and take into consideration or legal and ethical obligations to our clients and to our profession.  We certainly do not advocate or encourage any misconduct on behalf of our clients.  On the other hand, should we be the ones turning them in?  It depends, on your position and role with that client.  As a tax attorney, I cannot see to many instances where I would be doing so.  But, tax accountants must look at this from a different perspective and, in some instances, maybe required to inform the authorities of the wrong doing.  All I can say is seek competent tax counsel experienced in these type of matters before doing so.

Download DOC003