Uh-Oh! Tax Season is upon us.
Are your accountant and bookkeeper clients covered?
The holiday season ended a few months ago, and now Americans are heading into a new season – one that can be just as stressful and potentially more costly – yes that’s right, welcome to tax season. Now is the time we push our burdensome taxes off on others to process, fully expecting them to do an accurate and thorough job while we *hopefully* reap the benefits of a nice tax return. But .. what if they make a mistake? What if we forget to give them some vital information and receive an audit that costs a substantial amount of money?
The truth is that while we expect everything to go smoothly when using the services of an accountant, it is important to remember that we are all human, and we all make mistakes. Accountants are not exempt from fallibility and it is vital to their professional survival that the proper coverage is in place to ensure not only their protection, but that of their clients.
There are literally thousands of suits brought every year against tax preparers and bookkeepers. While this may seem ‘normal’ in today’s litigious society, and compared to other professions it is not an extremely high number, you need to keep in mind that the tax audit standards are CONSTANTLY changing. Sure we all rely on ‘our people’ but even the most knowledgeable person is fallible and mistakes will happen.
The staggering number of suits each year serves to validate that accountants have a lot to worry about. They can be held responsible for any miscalculation which was the result of a client’s audit. What if the tax preparer accidentally overlooked some financial information? – They would be at fault! – How would a mistake like this impact their operation? These are some scary thoughts to both the accountant and the client, and that’s why a quality professional liability policy is a great solution.
So why buy a professional liability policy? Generally speaking, most errors & omissions policies will cover a judgment, settlement and defense costs (even the frivolous ones). Stuckey & Company has access to carriers with ‘admitted’ products in most of the continental United States. These quality products, from reputable carriers in good standings, may include coverage enhancements such as: pre-claim assistance, broad definitions of services, expense reimbursements, settlement provisions, spousal and domestic partner coverage – and much much more!
Let us help you cover your clients! We will make it happen!
Email Chris@stuckey.com for more information or download our app here: Accountant Professional Liability Insurance Application.
“DID YOU KNOW??” A tax professional can be held responsible for any IRS-assessed penalties and interest the client was charged during an audit!!
“REMEMBER” Even if a client neglects to give all vital information to the accountant, and files a frivolous suit, the accountant could rack up some serious legal costs just to fight or defend it!!
Key Point : A minor mistake by an accountant can lead to huge problems and financial burdens on the client. Knowing that just one claim against an insufficiently insured professional could ruin them, it is vital to address their coverage needs.