Accuracy & Continuity on Tax Returns

This course guides tax preparers through key steps for meeting due diligence standards, emphasizing on reviewing for accuracy on current and prior year returns. Topics include carryovers, depreciation, interest and dividend income, RMDs, rental income, and capital gains. It also touches on basis determination and the rules surrounding preparer contingency fees.

• Explain the importance of reviewing the prior year’s return for accuracy, comparison, and carryovers for the current year’s return
• Recognize items that will affect future returns (e.g., carryovers, depreciation)
• Identify different types of income including interest (e.g., Schedule B, 1099-INT), dividends (e.g., Schedule B, 1099-DIV), and rental income and expenses (e.g., Schedule E)
• Explain required minimum distributions from retirement plans
• Differentiate between short-term and long-term capital gains and losses (e.g., Schedule D, Form 8949, Form 1099-B)
• Calculate the basis of assets (e.g., purchased, gifted, or inherited)
• Identify applicable rules regarding fees, including contingent fees