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Processing income tax returns.

Editor's note: Mr. Pielech is chairman of the AICPA Tax Division Tax Practice Management Committee. Mr. Katch and Mr. Werner are members of the committee.

It is necessary to be able to accumulate information to determine responsibility for various functions in the preparation of income tax returns. It is also necessary to determine the total amount of time spent in the preparation of the individual income tax return for ease of billing promptly. A form that accompanies the client tax information was designed to accumulate this data and to provide instructions to the administrative personnel to process the return properly.

The exhibit on page 609 is the current version of the form we use. The information at the top of the form informs the computer operator about the stage of completion of the return, and how to further the computer processing. The return is also graded for complexity. Each preparer is assigned to a grade level, and may not, without proper authorization, prepare a return at a level higher than the grade assigned.

The Completion Log section informs the reader about the state of completion and the responsibility for each stage of completion. All personnel handling the return need to initial and date the procedures they are responsible for. The Billing Log accumulates the billable time for the return and enables the billing process to be completed immediately on completion of the return.

The middle section of the form provides instructions to those assembling the return. It also provides reference information to assure that carryovers are not overlooked the following year and that the proper estimates are being sent to the clients.

How the return was sent to the client is important information that needs to be documented. The Delivery Log records the date and the individual responsible for assuring the return gets to the taxpayer.

Each year modifications are made to the form to eliminate information no longer deemed necessary and to add information that has become important.

From Ronald S. Katch, CPA, Katch, Tyson & Company, Northfield, Ill.
COPYRIGHT 1993 American Institute of CPA's
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Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
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Author:Katch, Ronald S.
Publication:The Tax Adviser
Article Type:Brief Article
Date:Sep 1, 1993
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