insurance

[MGC94]

what business insurance do you use for being a tax preparer? errors and o? what would you do if a cooperate return was filed late and they owe $1,400 to IRS? pay it or make the client pay it? 

[Just-Lisa-Now-]

whos fault was it that it was late? Did you have the return complete and the signed signature pages returned to you and you failed to file it on time?

[MGC94]

Did not actually happen. Just hypothetical. I'm wondering what other offices do and does E&O ins cover something like that? 

[sjrcpa]

Your deductible will be more than that.

If it's our fault and we can't get it waived, we pay it.

Insurance won't cover the penalty. It will cover when the client sues you over it.

If you belong to a professional association see if they have a group offering.

[BobKamman]

First I would check whether the IRS "first time abatement" policy applies to corporate returns.  If not, I would ask for abatement based on "reasonable cause."  Haven't seen any of those recently, but it used to be that IRS would agree when you least expected it, and deny when it seemed like a sure thing.  

Don't most E&O policies have a deductible of at least $1,000?  Probably more, these days.