samples included here.
by ed mendlowitz
how to review tax returns: the field-tested update
there are two types of work papers that are generated by the reviewer. one is the reviewer’s notes-based errors found and corrections that need to be made. this should be kept in any manner the reviewer wants, but after the return is completed this should be discarded and not kept in the files. this is done to mitigate liability issues should the workpapers be subject to a subpoena.
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the other is a tax season follow-up form based on issues disclosed by the preparer, reviewer or partner. the follow-up worksheet is a client service and practice development tool. it provides a uniform method of recording items that need follow-up.
many reviewers get too caught up with tax season to think about anything else and particularly additional services for clients. the tax return and underlying data is a treasure trove of additional services clients might need. establishing a method of capturing this information that could be followed up after tax season creates the dual opportunity to assist a client and provide added revenues to the firm.
once this worksheet becomes part of the review routine it will not take more than a couple of minutes to record any observations. i suggest making this worksheet mandatory and having the reviewer use it on every client – even if it is just to indicate that there are no opportunities to further assist the client.
following are the two worksheets. one is a sample reviewer’s review notes and the second the tax season follow-up form.
reviewer’s review notes
client________________________ year____
preparer________________________ reviewer________________________ date _________
date discussed with preparer___________, how discussed: __in person, __over phone, __by email
additional date discussed ___________, how discussed: __in person, __over phone, __by email
additional date discussed ___________, how discussed: __in person, __over phone, __by email
| error or issue | corrective action taken | corrected by | re-reviewed and corrected or additional comment | reviewer |
additional comment(s) by reviewer
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
tax season follow-up form
based on issues disclosed by preparer, reviewer or partner
client________________________ year____ date prepared_________ by_____________
date followed up___________ comments__________________________________________
date followed up___________ comments__________________________________________
date followed up___________ comments__________________________________________
issue(s) discussed
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
follow-up action
__________________________________________________________________________________________________________________________________________________________________________
client’s comments to follow-up discussion
__________________________________________________________________________________________________________________________________________________________________________
final resolution:
additional services performed ____________________________________________________________
future follow-up date ______________________
client expressed no interest in corrective or preventative actions __________________________
comments _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________