How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

My name is ***** *****, my tax preparer filed my extension

Customer Question

My name is ***** *****, my tax preparer filed my extension last year using my old companies EIN instead of my current EIN, this resulted in penalties for a late filing of almost $2000, can he be held responsible? He is an APT
JA: Thanks. Can you give me any more details about your issue?
Customer: I am just trying to find out if a complaint against him is justified. I contacted him and he refuses to absorb or help offset the costs, it was his error
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

Your position is absolutely justified - and you have rights to seek a compensation for damages because your tax return was not correctly prepared.
But that is a civil matter between you and your tax preparer - and based on the contractual obligation of parties.

I bet that your tax prepare have some arguments why he should not be responsible...

If you are not able to negotiate - the only resolution would be to sue the tax prepare for damages.

Customer: replied 9 months ago.
I asked the IRS to waive the penalties and they denied my request, it looks like there is an appeal process, do you think that would be worth a try?
Customer: replied 9 months ago.
I was also thinking about filing a complaint against the tax preparer with the BBB, would that be an appropriate course of action?
Expert:  Lev replied 9 months ago.

That would be penalty abatement request.

You might need a local CPA to help you with such request.

You would need to state the type of the penalty relief you are requested and support your position that you qualify for THAT relief.

Expert:  Lev replied 9 months ago.

For instance -

You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service's First Time Penalty Abatement policy (FTA) if the following are true:

  • You didn’t previously have to file a return or you have no penalties for the 3 tax years prior to the tax year in which you received a penalty.
  • You filed all currently required returns or filed an extension of time to file.
  • You have paid, or arranged to pay, any tax due.

Another possible option would be Reasonable Cause Penalty Relief.

See more details in the following document

https://www.irs.gov/irm/part20/irm_20-001-001r-cont01.html

.

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all tax related issues.

Related Tax Questions