A Firm prepared annual income tax returns for a family trust and its beneficiaries. The Firm failed to obtain or document a beneficiary’s authorization to file an income tax return for several years.
The Investigation Committee determined that the Firm contravened the CPABC Code of Professional Conduct as follows:
202.1 – Due care
205 – False or misleading documents and oral representations
206.1 – Compliance with professional standards
218 – Retention of documentation and working papers
The Committee recommended that the Firm:
- accept a reprimand;
- pay expenses of $2,822; and
- report to the Director, Professional Conduct, regarding the steps the Firm has taken to prevent recurrences of similar instances in the future.