Understanding the return....or not!!

My tax preparer here in the UK has finally sent me my returns to sign and send off. I would like to know how on earth are you supposed to understand all the figures etc . I am signing that all the information is correct, but heck, I cant even understand half of it ......thats why I got a tax preparer!

What happens if you sign it, and the IRS discovers a discrepency....is this serious? I honestly can't understand every single figure. After all, there is only so much the accountant can explain...

This takes us back to an earlier question of yours, which was how you choose a tax preparer.  Yes your US tax returns are complex.  I am sure of that.  Why can't your tax preparer explain it to to you?  Surely a good preparer would be on your side, since its your dollars/shillings that are paying for the service?

But ultimately you are totally responsible for what you sign.  You cannot hold your tax preparer liable for mistakes.  The IRS will come after you and you alone!

Kit is only half right.  Under US law the preparer can also be liable to penalties.  I don't think that this is the question here though; in my opinion it is more related to customer service issues.  But yes you should only sign what you are comfortable signing.  That goes for both client and preparer.

Come on Guya, some of these returns even a rocket scientist would have difficulty following.  Be realistic.  I give a good explanation to those that want one, but some will just never "get" it.

Yankeewannabe, if the IRS discovers a boo-boo or discrepancy, then they'll send you a letter.  You take that letter to the guy or gal who did your return, and have them sort it out.  Often times, it's the IRS who's at fault, not your preparer, so Do Not Reply; let them sort it out.  They shouldn't charge you extra for this; they should guarantee their work.  Most will charge you for representing you on an audit, although some have audit insurance programmes instead and a very few do it for free.

If it turns out that it's a stonking whopper of a mistake, they have professional indemnity insurance that covers the error.  Usually, as you would have owed the tax anyways if they had done it "right", they pay your penalties only.  Some also cover interest, but you had the right to your money in the meantime so some don't.  It should be in the fine print of the client agreement documents you signed with your preparer.

Lastly, as to your responsibility to understand the tax law and return, Guya and Kitsonk are right:  It is 100% your responsibility to be honest and truthful on your return.  The preparer is likewise burdened with being 100% honest and truthful.  If you tell your preparer that you spent $100 on chicken wire for your chicken coop, then (a) you had better have spent at least $100, and (b) your accountant had better not write a bigger number. 

You may be surprised to learn that the IRS is kind and gentle provided you are truthful and honest in your dealings with them.  "I didn't know she had to be in school full-time" is not an acceptable excuse for a mistake - either you or your accountant should have taken the time to know that.  But "I lost the receipts in Hurricane Katrina and I'm not sure how much I spent" is acceptable, and while the IRS may still end up increasing the tax in such a case, they would generously waive all penalties for that person.

lizzit, thank you ever so much for your valuable info. It was extremely helpful.
What I do know is that I was 100 percent truthful on the return, infact the reason why I wrote the original email is that honesty is so important to me. Although, understanding the return is proving difficult. Unfortunately, the preparer that I have is not very helpful in explanations, so I have to rely on my own calculations....Yikes! Luckily though everythings seems to add up so far.

Thanks again for your help.....