Tax Preparers’ E&O Policy Bond

The acronym E&O stands for Errors and Omissions. A Tax Preparers E&O policy is designed to protect tax preparers against unforeseen errors or oversights in their work and against litigation resulting from these errors. Examples of covered losses include honest mistakes, errors or omissions, interest payments and penalties to federal, state and local governments, legal defense costs, and coverage for employees. Bookkeeping is also covered for an additional fee.