Is Our Tax Preparer Responsible???

[GoinGoofyPlanninThisTrip]

We pay our tax preparer $700 to prepare our personal and corporate taxes. We were told last month by him we would be receiving roughly $2000 as a refund. Fast forward to this past Saturday when we receive an IRS letter saying we actually owe them over $1700 by the 21st of this month. The preparer's response today (via a tax season intern) was, "Yeah, we missed that...you owe." Click. :confused:

Is it wrong to want to ask for our fee back? I've read you're ultimately responsible since it is your return, BUT if I could decipher any of that stuff I would be doing my taxes in the first place! :blush:

We had not pre-spent our refund nor is paying going to kill us, but it certainly is a kick in the teeth.

What would you guys do?

Thanks.

[merlinmagic4]

Ouch! Did they make the mistake despite the information you supplied? I say if they made the mistake they should give you your fee back but that's probably not how that works.

Good luck!

[GoinGoofyPlanninThisTrip]

Yes, we supplied all the correct information they needed to provide their service.

[Jasper]

First of all do you have any kind of written agreement? If you do, then sit down and take a good look at it.

Second, is this a chain like H & R Block? If it is then contact their main office.

Third, contact the preparer and let them know what you think and that you feel they should refund their fee.

Fourth, contact your state attorney general's office. They can tell you if tax preparers in your state are required to have any kind of license and if so what agency issues that license. Assume there is such an agency in your state then I would contact that agency for help. You may also find this information on line at your state's department of revenue web site.

Finally, contact a local attorney for help and advice.

Good luck!

[Ian]

I wouldn't waste your time ... I can tell you from painful personal experience that their liability in these things is severely limited.

At the end of the day, though, you really haven't suffered any loss. Yes, it's disappointing, but you're just ending up paying what you should have paid in the first place. Now if it had gone on for years and not been caught and then you'd been assessed fines and interest or something, then maybe they would help but even then it's iffy.

This is one of those situations where you chalk it up to a bad experience and put a free market economy to work ... use someone else to prepare your taxes next season and let the firm you used to use know that you're doing it and why you're doing it.

[GoinGoofyPlanninThisTrip]

I wouldn't waste your time ... I can tell you from painful personal experience that their liability in these things is severely limited.

At the end of the day, though, you really haven't suffered any loss. Yes, it's disappointing, but you're just ending up paying what you should have paid in the first place. Now if it had gone on for years and not been caught and then you'd been assessed fines and interest or something, then maybe they would help but even then it's iffy.

This is one of those situations where you chalk it up to a bad experience and put a free market economy to work ... use someone else to prepare your taxes next season and let the firm you used to use know that you're doing it and why you're doing it.Yeah, unfortunately that is the conclusion we keep coming back to as well. We will certainly continue to voice our displeasure to them over their lack of professionalism (and ability) and hopefully by next year, we will have found that new tax consultant.

[RenDuran]

I already filed all my tax stuff away, but isn't there something that says to the effect that you are ultimately responsible for what is filed, regardless of someone else preparing them?

[Jasper]

I already filed all my tax stuff away, but isn't there something that says to the effect that you are ultimately responsible for what is filed, regardless of someone else preparing them?

There is such a statement but that only covers your responsibility to the IRS. In other words the IRS is saying is that you have to pay the tax not that you can't go back on the preparer for the mistake.

[Jimenyfan]

My mom got a bill from the IRS for $3500, last year the man who did her income tax forgot to include her social security. Seems to me if your doing taxes for someone whose 80 that may be something you remember.:confused:

[JMTStone]

I agree... You really have no recourse but you do need to find a new tax preparer AND contact the BBB (Better Business Bureau, not the Bibbidi Bobbidi Boutique) about this. Maybe if these jerks get enough bad reports, they may stop the next poor person from using that company.

[crazypoohbear]

ouch, that really hurts :(
Unfortunately, you can't hold them responsible but you can do things to make sure it doesn't happen again, file a complaint with the better business bureau, go to the owner/president of the company you used/tell all your friends and neighbors (nothing hurts more than losing business)
You are "lucky" that you didn't have interest and penalties tacked on. So you could look at that as a silver lining :confused:

Doesn't it seem scary that there are so many people can make such errors and the response is "oh well, my bad, oppsy." :mad:

[GoinGoofyPlanninThisTrip]

Doesn't it seem scary that there are so many people can make such errors and the response is "oh well, my bad, oppsy." :mad:No kidding, if I make a mistake like that in our business and we would almost certainly get sued.

[Red Randal]

Okay...my father has owned a tax accounting practice for over 30 years and I've worked here for nearly 10. Let me try to decipher the situation.

From the sound of your story, you filed your personal and corporate tax return last month with the bottom line being a $2000+ refund. Then the IRS sent you a letter regarding this just this week? Are you sure the letter wasn't in regards to last year's return or, perhaps, payroll taxes or something of the sort. Also, do you pay quarterly estimates? Perhaps your preparer thought you did and included it when you did not. Lastly, do you usually get a refund? If nothing was especially different this year, didn't you think maybe he messed up? If you DO usually get a refund then the IRS might be in error.

It certainly does not excuse your preparer's intern's attitude, though I know we are all under a lot of stress this week (notice how it's not stopping me from surfing Intercot regardless, :blush: )

I understand not wanting to answer these questions in the public thread but if you don't mind sending me a PM (and I understand if you don't wish to disclose this information to anyone) I can try to help you out.

Let me say for sure that you should visit another tax preparer before you start writing checks to the IRS (unless you know for sure that you owe the money, then don't risk getting assessed late fee penalties and just pay them and sort out the details later.)

And look on the bright side, at least you're probably getting a nice rebate in the summer.

[crazeedizneefinatic]

Paying $700 dollars for your taxes to be prepared I am assuming they are pretty involved. I would certainly take the issue up with the owner. Pretty much seems they had the attitude "oh well" and still got paid. If you have used them more than once what else have they potentially screwed up and was overlooked, maybe in your favor. Hopefully you paid by check or credit card. I would fight for the fee to be returned, even partially would be acceptable. Then when the charge is disputed you can tell them "whoops what do you mean you didn't get paid? Oh well". Good luck dealing with them and thank goodness you still have time to get your payment in on time.

[MsMin]

As a daughter and granddaughter of a CPA I can tell you that my father or grandfather would not have done that to you. If a person gets a tax bill or is audited they go down and review it w/ the IRS and work to see if there are any deductions that they missed. I know my dad would take some responsibility if that happened. Currently, I help him do taxes and our own estate planning. I hate it but he reviews it and I use Turbo Tax to do the forms. I truly think I could do it w/o him and just on Turbo tax now and I don't use the tutorials that come with the package.
I've also seen some people come to my dad for help after someone has messed up their taxes. One in particular was a person who a tax preparer let them deduct the birth of their child in the previous year :jaw: They can do some crazy things and after what I've seen I would rely on a program more than some of the people out there who claim to be tax preparers... some are just form fillers..... (I know there are many good ones but you just have to be careful b/c EVERY walk of life has its bad eggs).

[GoinGoofyPlanninThisTrip]

As a daughter and granddaughter of a CPA I can tell you that my father or grandfather would not have done that to you. If a person gets a tax bill or is audited they go down and review it w/ the IRS and work to see if there are any deductions that they missed. I know my dad would take some responsibility if that happened.I wished we had used your dad! :thumbsup:

That's all we were hoping for - for the preparer to go to bat for us and defend their own work against the IRS. We do that daily in our line of work for our clients and assumed we would get that same privilege.

On the bright side, we've spent so much time researching this, we now believe we will be able to tackle the taxes on our own next year. Mark your calendars for more questions next year...

[MsMin]

I wished we had used your dad! :thumbsup:

That's all we were hoping for - for the preparer to go to bat for us and defend their own work against the IRS. We do that daily in our line of work for our clients and assumed we would get that same privilege.

On the bright side, we've spent so much time researching this, we now believe we will be able to tackle the taxes on our own next year. Mark your calendars for more questions next year...

What you mean you didn't file an extension :thedolls: I still have taxes to do and I hate it :ack: but it's my disney $$. I'd say we could meet at WDW to discuss your taxes but I'm only qualified to help you with how you feel about it!
Good luck with it. Just do like I do... keep hitting different links on Turbo Tax til you find what you want!