DrDeano said:
My assumption is to hire a tax lawyer and "go after him", but the problem is that we are by no means the only ones he's done this to, so I'm sure we wouldn't be alone in our anger and he would likely "shut down" shop and none of us would recover a dime.
Mauisreef, I still want your wife's opinion...two heads are better than one!!!
If your preparer was a CPA, tax attorney, or an enrolled agent, then they are subject to strict licensing standards. If they are a CPA, bring in the
Washington Society of Certified Public Accountants in on the issue (or at a minimum, threaten to bring them in). I don't know about the State of Washington, but here in Missouri if what you said is true and it was purposeful instead of a mistake, your CPA's license would be yanked in a second. Even if it was a mistake, they would be in grave danger of suspension or probation. They also likely have malpractice insurance and cannot just close up shop and run for cover.
PM me the address and name of your accountant so I can do some digging....do
NOT put it on the board.
i thought the whole reason i/we "hire" these individuals is because we don't "know" how to do them... so the fact that i/we will be held accountable for his incompetence has got me in quite a lather
Don't go there yet. You are in a rough position because when it comes to taxes, the burden of proof is on the taxpayer instead of the IRS unlike criminal cases where the burden of proof is on the prosecution. However, the fact that you say that you aren't the only people affected, indicates pretty good proof for your defense IMO.
Has this person told you that they will defend you with the IRS? If not, then they are running scared or are not able to represent taxpayers. In your case this is a bad thing if they cannot represent you. I know many unlicensed tax preparers who are very dedicated and do a great job and I know many unlicensed preparers who are complete idiots. (Basically, I'm saying that not everyone needs a CPA...sometimes dedicated unlicensed preparers are the way to go). However, unlicensed preparers cannot represent you and you are stuck defending yourself.
WORST CASE SCENARIO....you owe taxes, penalties, and interest because the IRS agent says you should have reviewed your return and suspected that your tax bill was too low or your refund was too big. FIRST DEFENSE...my accountant assured me that it was right. I was just thrilled with the final result and trusted my accountant completely. SECOND DEFENSE...I have since learned that my accountant has done this to more than just us. I'm more than willing to help you prosecute my accountant for fraud if you need me to. THIRD DEFENSE...I cannot afford to pay this all at once but if you ABATE the penalties and interest, I will pay the taxes that are owed on a payment plan
Form 9465 (requires Adobe Acrobat Reader) and will seek restitution from my accountants malpractice carrier, if any. If not, I will sue them in small claims court. FOURTH DEFENSE...Document everything your accountant has done BY LETTER by CERTIFIED MAIL
TWICE. If you do so, you can call the IRS PROBLEM RESOLUTION BOARD.
If you are representing yourself, here's some advice. Answer questions honestly and in a respectful manner. However, do not get nervous and start talking about anything other than the answer to their question. Remember these words...answers should be short, truthful, and to the point...don't say anything else. Sometimes agents get buddy-buddy and you think they are your friend...they are NOT. Sometimes seemingly innocent questions are not innocent. Do NOT tell an agent that, "You pay their salary with your taxes".
