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Generally there are two avenues to pursue, but they are not exclusive. You can pursue both routes.
The first is filing a complaint with your state's licensing agency. In CA it would be a complaint through the CA Board of Accountancy. Their online site for the complaints is http://www.dca.ca.gov/cba/consumers/complain.shtml
Next, you can also sue them for professional malpractice or negligence.
Along with that suit you could also sue them for breach of contract since they said it would be a maximum of $10k and ended up being more.
I don't think you would have a realistic claim against them for causing an audit, but the rest of it sounds viable under your facts.
We did already file a complaint through CA board of Acccountancy.
Then the only other step would be to file the lawsuit.
We are looking at sueing them. I did offer to pay them $6k to make it go away. They wouldn't take that. I don't think they caused the audit as when you are asking for that much from the IRS it is realistic that they wouldn't want to give it up or rule in your favor. What I guess is crazy is that they never gave us a monthly bill or disclosed any billing to date despite us asking. Additionally, they are now trying to collect this through a collection agency even though it is only 60 days past due.
Aren't accountants required to provide an engagement letter, proper estimates, and monthly progress bills? Also when they threatened to not receive a critical IRS meeting, I gave them my credit card. They didn't charge it.
I thin you have several valid grounds on which to sue them. The fact that they failed to provide the critical information to the IRS is a big deal as well.
Yes I think we will threaten to do that. They also wrote me threatening emails two days before audit demanding full payment then flip flopped the next day after I said we had no agreement nor expectation of that excessive bill with no end to the audit nor progress in site.
If you are going .to pursue them then pursue them on all grounds
You can also recover your attorney's fees.
The chances are good that they will try to resolve this short of a trial.
Did you have additional questions?
No I think I am good for now. How do you recover attorneys fees? Is there a way I can share your answers or print them with my ex husband. Thanks.
As to the attorney's fees it is just another element of damages you can sue for under a breach of contract theory.
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