The Member incorrectly prepared and filed a US tax return and the Canadian T1 tax return for a client which resulted in both tax returns being reassessed by the respective authorities. The Member was not registered with the United States Internal Revenue Service (IRS) to prepare and file US tax returns, and was not trained to prepare them. The Member treated the client in a rude and unprofessional manner when discussing the errors within the tax returns.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201. – Maintenance of the good reputation of the profession
202.1 – Integrity and due care
203 – Professional competence
205 – False or misleading documents and oral representations
The Committee recommended the Member:
Accept a reprimand;
Pay expenses of $2,369 plus GST;
Pay a fine of $2,000, less any amount the Member refunds the client;
Register with the IRS should the Member continue to prepare or file US tax returns; and
Attend the following courses:
PD Nexus: Public Practice Insights; and
US Personal Tax – Fundamentals and US Tax – Personal Investment in Real Estate (if the Member continues to prepare or file US Tax returns).