Tax Preparer Mistake

Mags

LDAR, bitch.
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Oct 22, 2004
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#1
Some of you no doubt know that sinking feeling when you get that fat envelope from the IRS in August. It's never a good thing.

Turns out my tax guy completely left an entire W2 out of my 2009 filing (I get paid from a few different companies most years).

It's not the end of the world but the tax, penalties and interest are about $3600.

It's a blatent screwup since the W2 he didn't report was stapled to the others so he had his fucking hands on the thing, he just never figured it in.

Now I agree the tax should be paid by me but shouldn't he pay the interest and penalties? I've yet to talk with him and ask what his policy on this is.

Also, should I soooooo fire him? He took over for my old guy and this guy is hard to reach and kinda snotty but it's hard to find someone good.
 
Jun 2, 2005
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#2
Well, before you fire him see how he handles the situation. Most CPAs would pay the whole thing, including the tax you owe personally just to make up for the mistake.

But yeah, if he doesn't at least make you whole on the penalties and interest, beyond firing him you've got more than enough to sue him for damages.
 

Don the Radio Guy

G-Bb-A-D
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Mar 30, 2006
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#3
Yeah, see how he handles it. What people who work for you do when they make a mistake is more important than trying to stop them from making mistakes in the first place, since that's impossible. If he doesn't fix this in a satisfactory time, shitcan his ass and hope you can find someone better.
 

blee

Will Drink Today
Dec 9, 2004
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#4
At least you got yours in August.
I got my letter on Christmas eve last year and it put a dent in my holiday spirit.
 

Mags

LDAR, bitch.
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Oct 22, 2004
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#5
Well, before you fire him see how he handles the situation. Most CPAs would pay the whole thing, including the tax you owe personally just to make up for the mistake.

But yeah, if he doesn't at least make you whole on the penalties and interest, beyond firing him you've got more than enough to sue him for damages.
Penalties and interest sure but what damages?
 

LiLJimmysHog

Professional negative prick
Dec 18, 2005
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#6
I say F it. Don't pay the taxes. What are they gonna do to you if you don't?:icon_eek:
 
Jun 2, 2005
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#7
Penalties and interest sure but what damages?
You're losing time to deal with the issue later, exposure to the IRS, you paid him a fee to do the initial returns, etc. Also, if he tries to buck you on fixing it right away (free of charge), you could get into punitive damages as well.

I'm obviously no attorney, but these are all pretty typical things cited in disputes between two small businesses. (Which, if you have multiple returns and contract a CPA, that's essentially what you are)
 

CousinDave

Registered User
Dec 11, 2007
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#9
The IRS will also wave these charges, you'll still owe the taxes, but the interest and penalties will be forgive, if they don't do it contract your Representative & Senators offices
 
Aug 27, 2002
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#10
I'm with everyone else. See how he handles it. Their errors and omissions policy should cover it as it is not your fault.

This may seem like a silly question, but did they sign the return in the tax-preparer section or is it just signed by yourself?? You may be fucked if they didn't.
 

Mags

LDAR, bitch.
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Oct 22, 2004
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#11
I'm with everyone else. See how he handles it. Their errors and omissions policy should cover it as it is not your fault.

This may seem like a silly question, but did they sign the return in the tax-preparer section or is it just signed by yourself?? You may be fucked if they didn't.
He put his firm's stamp on it but it was e-filed. I do have the copy with his stamp and the e-file was done through his office.
 

CougarHunter

Lying causes cat piss smell.
Mar 2, 2006
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#15
One of the first things that twat Sebilius did when she became gov of KS was direct the audit of all state employees. I got gigged for two years of my tax preparer not counting my state retirement properly. No fees or interest, just the owed tax. I sure as fuck told them about it though.

I haven't filed my own taxes since I was old enough to go to prison for tax fraud for a reason...
 

Badfinger

I shot the sheriff
Apr 26, 2006
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#16
If he agrees that he screwed up, he'll probably cover the interest and penalties. On the other hand, he might claim that you never gave him the W2. If he plays that game then he's a schmuck.
 

Mags

LDAR, bitch.
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Oct 22, 2004
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#19
Just a followup: my preparer said he'd pay the interest.

Not happy abou it bug the tax was mine to pay anyway.
 
Jun 30, 2005
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outsiddah Boston
#20
I got a nice try letter this year for 2009...I gave a flexible spending account that I put 5K in for childcare...It saves $1700 in taxes..And then I also too a $600 deduction for my child...oops...double dip...I got a bill for $617...and felt like an ass..

Nice to see he is paying the interest..It's not TOO outrageous if you pay it right away, but I would LOVE to find out where I can invest my money to earn the same interest rate as the IRS
 

stellarcomics

Registered User
Jul 25, 2005
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#21
I know this one from experience: no matter who prepares your return, YOU are solely responsible for its content. Your preparer should be able to get them to remove the penalties, but you still owe the taxes, and a "non-payment" penalty over time. I'm wrapping up paying back taxes from 10 years ago (don't ask). I'm still paying "non-paid" penalties from back taxes that are long paid now. It sucks.
 
Jun 2, 2005
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Dallas
#22
Just a followup: my preparer said he'd pay the interest.

Not happy abou it bug the tax was mine to pay anyway.
I'd call it an acceptable resolution if it were me.

I'd use someone else next year, but I would consider the matter satisfied with the current guy.