Many PAs prepare tax returns for individuals and for corporations. Under what circumstances is liability insurance required to cover the preparation of tax returns?

Question

Quizplus · Accepted Answer

Liability insurance is required when fees are being charged and a significant number of returns are being prepared. The exact number of returns that trigger this requirement may vary by state or jurisdiction, but generally it is considered to be more than a handful. Whether the PA is a member of a professional accounting association or earns a bulk of their income from tax return preparation may be relevant factors, but they do not necessarily determine the need for liability insurance.

Many PAs Prepare Tax Returns for Individuals and for Corporations