What do your clients deserve?
By Ed Mendlowitz
How to Review Tax Returns: The Field-Tested Update
My partner Peter Weitsen frequently tells reviewers to “Don’t use eyes, use brain.” I frequently repeat this. What does this expression mean?
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This is a clarion call to focus on what you are working on and think about what you are supposed to be doing. The focus can be only a couple of minutes, but it has the potential to yield valuable planning ideas and maneuvers.
The focus has to be concentrated, directed and with a mindset of making the client richer, more secure and that no opportunities have been overlooked. The reviewer also should look for red flags that could cause a notice or audit. While it doesn’t need to take more than a couple of minutes, it should not be rushed.
Even though partners see the return and sign off on it before it goes to the client, the reviewer is really the last line of defense for a quality product. Partners must have the confidence the return is correct, and nothing has been missed. A single faceted review, such as ticking and tying, won’t accomplish what the partners need done. The review must include looking at the issues and planning opportunities. Ticking and tying not only doesn’t use the brain, but it is tiring and creates what I consider as reviewer fatigue. It simply does not use the brain; only the eyes.
Think about what you want, but you need to consider the purpose or your engagement. Is it to do a neat, accurate return using the information the client provided; or a professional job that also considers what wasn’t provided by the client and the potential for taking advantage of tax benefits unknown to the client and planning opportunities that consider the client’s entire financial situation and not just the tax part of their life?
I think it is the latter. Using your brain can accomplish that. Only using your eyes most likely will not. Don’t use eyes; use brain!
