Mistakes Were Made: Knowledge of Errors on Returns and What to Do About Them

In the course of providing tax services, there likely will be instances where a CPA discovers an error, omission, or missed filing. As a member of the AICPA, a CPA can find guidance on the appropriate standard of conduct in SSTS No. 6 and Circular 230, Section 10.21. In addition, the FAQs present practical guidance to AICPA members by addressing scenarios CPAs may encounter in practice. In summary, if in the course of his or her work a CPA discovers an error, omission, or missed filing, professional standards require the CPA to promptly inform the client of the error, the impact of the error, and the corrective measures to take. If the client does not take action as advised, the CPA should evaluate the engagement, consider whether to continue representing the client, and consult legal counsel as necessary. While documentation of required action is not required, the CPA should always exercise professional judgment in determining what documentation is prudent where notification and advice are provided orally. While such conversations may be difficult, they are not only required, but are also critical in maintaining the AICPA standards of high integrity and professionalism.