You should know that all CPAs are required to disclose to their clients if any third parties are involved in the preparation of tax returns or with any other services offered by the CPA. Some of the larger firms get around this requirement by having offices and employees in low cost labor markets. “I’d like to introduce you to Deepak Kapoor, who will be preparing your tax return. He goes by Chip.”
IRS regulations prohibit the transmission of federal tax return data to foreign countries, so these service bureaus get around the law by hosting data on a computer located in the United States and providing access to those data via an Internet based VPN (virtual private network). Apparently having the tax returns appear on computer monitors in Mumbai is not technically the same as sending the data overseas. Seems like a very thin line to me.
Today, I received a solicitation from a company in Kenya. To allay my xenophobic fears about dealing with people who have unusual and hard-to-pronounce names, these people decided to adopt the name O’Sullivan Associates Ltd. Talk about pulling my Irish heritage heartstrings.
We are qualified and experienced accountants in the BPO business and would like to relief you from routine and repetitive work of form filling, data entry, book-keeping, spreadsheet preparation, financial statements analysis and accounting.
We do receive source documents via internet, work on them confidentially and e-mail back the processed information in terms of datasets, Spreadsheets and final accounts or we can key figures straight into your computer given passwords.
This kind of arrangement will allow you to make use of lower rates of pay in Kenya and make higher profits. You will also be able to take on more clients cost-effectively.
Sosthenes Bichang'a, CFE, CPA(K), Director.
O'Sullivan Associates Ltd.,
P.O. Box 9459-00200,
Information House,2nd floor, Room No.11,
Hakati/Mfangamano St., Nairobi-Kenya.