You Decide


Your Role and Assignment
Your role in this scenario is to decide what you will do, what you can do, and how to proceed. You are aware that the bank will rely on the financial statements and income tax return that you prepare in making its decision on whether to grant the loan to your client. Do you complete the financials and prepare the tax return? What obligation do you have to communicate to the client as to the type of supporting documentation needed for the filing of a complete tax return? Are there any risks that taxpayers may face as a result of having poor documentation? What are those risks? Would you communicate those risks to the client? What obligation do you have to help her with respect to the preparation of the income tax return?

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