filing tax return and tax payer identification

[morrisliberty]

hello,

I have a simple question. A married couple and their two children want to e file . Do I need to see current social security card for husband , wife , and each child in order to file? What other types of ID am i required to have by IRS ?

[mwcpa]

you are not "required" to see the social security cards of the client and his children...you can ask if you are concerned about an issue, but then if you did not trust they were telling the truth about their name and SS# you may be better served to not have them as clients....

Often I have requested a copy when an efile is rejected since the name on the card must be exactly the same on the tax return.... often I see where spouses change their names to a married name, but fail to inform the SSA.....and generally, when I ask the client will tell me what is says and then they realize they need to file some paperwork with SSA....

[commentator]

I ask new clients for a copy of prior year(s) returns. I pull the SSANs off those returns.

[morrisliberty]

hello,

I am referring to new client and Pub 596 Earned Income Credit
Rule 2 To claim the EIC , you [and your spouse, if filing jointly] must have a valid SSN issued by the Social Security Administration [SSA}. Any qualifying child listed on Schedule EIC must have a valid SSN. My question is how can I say I am using due diligence if I do not see the SS cards for husband ,wife , and each child on Schedule EIC?

[mwcpa]

if the SS numbers are not valid to the name of the person then the efile will be rejected when you press the button....
if the SS was used on another filing then the return will be rejected....

due diligence does not require seeing every possible document related to every position on the tax return, due diligence involves asking the right questions, getting the correct sign offs, getting a little support for something you are unsure of, using your professional judgment about the truthfulness of the client, etc... these are all things one gets with experience, both life and professional, having come from an "audit" background I am fortunate that I can often see things others cannot.... again, I go back to my first answer to you, if you do not believe the client then you would be best served not working with them....you have a choice in who you chose as a client... I often do not take on a client when I have a bad feeling in my gut about something they said or did....

[rangerj]

I ask for Social Security Numbers at least twice, once in the initial interview and secondly when I ask the client to verify that the SSNs are correct when the return is signed. I also look at any documents that have SSNs on them like the W-2, or (until recently) 1099s and other information documents. Like MW I follow my gut and if I am uncomfortable with the information being provided I will advise the client that they need to seek tax help from some other tax professional. Also like MW I spent my early years in accounting on the audit side, before going over to the dark side, and can do a quick net worth (in my head) and if the lifestyle and the tax return numbers do not "add up" I will refuse the engagement.

[TheOtherMe]

Since I started my career as an auditor at the IRS, I can quickly do what we called a Cash T in my head. It's basically is there enough income to cover the expenses. If I'm not comfortable, since I am an employee, I talked to the boss. They have always agreed with me because it will be there name on the return. They would talk to the client before reaching their conclusion as to what to do.

As for the SSN, the only time we ever got a copy of the actual card was in the case of hyphenated names. If you don't get those exactly right, you will keep getting efile rejects. We only did that the first year and shredded the card once it the return was accepted.

[commentator]

Tax preparers are required to retain copies of W-2s (and 1099s that show income tax withholding) for clients they e-file. I know of no similar requirement for copies of Social Security cards.

VITA volunteers, on the other hand, are supposed to see the Social Security cards (or the NRA equivalent) of their clients and clients' dependents.



Note that NRA stands for non-resident alien.

[ShoreEA]

"Note that NRA stands for non-resident alien."

So I guess that National Rifle Association card doesn't cut it?