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Assuming you are a CPA, do not do anything to compromise your license. Folks won’t hesitate to leave you hanging if a ruling goes against the company.

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Thats why I havent requested a ruling yet and wait to see what the director wants as I know there is risk of audit once the company is disclosed.

Because the rulings were in the 90s. I have never disclosed the identity of the company. Emailed my tax director and said I consulted a few people and was recommended that we reached out to the state for a private ruling and asked if he would like me to do so. Never imagined his reaction. He yelled at me, told me it was inappropriate and that he already discussed with other firms prior to me doing this, which I had no knowledge of, and told me do not ever do this again as he thought he would be audited.

I told him I had not contacted the state nor disclosed who we were, and the person I asked for opinion does not even know I was asking for my company, and he has not worked for the state since years ago. I told him I just wanted to make sure we were covered and I did my due diligence just like I promised him.

I just now have a mix of feelings…maybe my approach was wrong? To be honest I didnt see it any difference than called the state anonymously and asked for a taxability decision. Maybe I should just do what I am told to do and not do anything extra.

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If ur not signing the return you should be ok right?

They’re the ones putting their PTIN and name on the line

In a way I’d say you have to respect their judgement call. But also you did ur diligence so I think you should be ok.

At the end of the day the tax director doesn’t even decide the position, the CEO decides. It’s ultimately the company’s tax liability

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Don’t make this assumption. I always think, if you were called into court (dramatic but it’s how i make sense of things) and you being a cpa were asked if you did your best and your answer is “yes, but my boss said xyz… so i just did what im told to avoid getting in trouble”, but you knew it was incorrect and you let it slide, you not being the signor won’t necessarily protect you because you did the work. You will be held to the standards of a cpa and we do have standards on this sort of thing specifically.

But I hear you. No one wants to piss the boss off. This is the thing that is scary about accounting. We have standards and we have to make real choices between those standards and people’s ego’s to not risk our own hide. But that’s the job sometimes. Just make sure you save the paper trail of questioning and pushing on all of that.

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You saw conflicting information and brought it up. The other team member did not disclose all of the details. Now you know the details and from their words they have consulted on it. You did what you needed to do.

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