Ethics in Taxes
Posted on 07. Nov, 2008 by Terry in Ethics
When you talk about ethics, and in the same sentence, you mention taxes, people just don’t connect the two subjects. When you do taxes for a living, these two subjects really confront you on a daily basis. I admit that I really work hard to get all my clients the largest tax refund that I can possibly get them legally. I will always push the envelope to work any grey area and help them to understand that good records and planning on their part will result in a larger refund.
What amazes me is the attitude that I get from so many clients is that “I don’t think I should pay any taxes, and why should I pay when everyone else isn’t paying any.”
How do you deal with that attitude? I’ll have a client and I’ll ask them how much they donated to charity or to their church, and they will reply, “How much can I claim?”
I have fired, or refused to do the returns for clients that I know are trying to “game the system” or just flat out lying. The largest fradulant violation we have to deal with is the “earned income” claim.” A married couple with 3 or 4 children will file separately, but each will file “Head of Household” with dependents. They will claim that they are not married but have dependents, or they will state that they have not lived with their spouse for the last year. If both taxpayers file this way, they can get several thousand dollars in refunds in excess of what they would get if they were to file legally.
We have instances of where the couple will come to the tax office together and attempt to file separately to get the larger refund. My policy has always been that once I discover they aren’t truthful, I inform them that I cannot file their tax return. They usually leave my office and go someplace else that will file their return without asking the questions that an ethical office should and is required to ask. Bottom line is, I have to look at myself in the mirror every morning and I want to like what I see.
