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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 19482
Experience:  B.A.; M.B.A.; J.D.
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Our business paid an individual a $2500 retainer up front to

Customer Question

Our business paid an individual a $2500 retainer up front to prepare our taxes. About a month ago when we started to inquire about the status of the return (with the Oct. 15 extension around the corner) we then realized that he hadn't done any of the work. He had no Quickbooks file for us, no spreadsheets, nothing. He claimed he couldn't complete the task because of "our failure" to provide necessary documents- which is not true, and refused to return the retainer (not to mention the thousands of dollars in tax penalties we are now facing). He is not a CPA (we later found out).

So- is it legal to say you will file someone's taxes and then not do so? and do you think we'd have a good shot in court?
Submitted: 6 years ago.
Category: Business Law
Expert:  Phillips Esq. replied 6 years ago.

 

Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

 

Question: Our business paid an individual a $2500 retainer up front to prepare our taxes. About a month ago when we started to inquire about the status of the return (with the Oct. 15 extension around the corner) we then realized that he hadn't done any of the work. He had no Quickbooks file for us, no spreadsheets, nothing. He claimed he couldn't complete the task because of "our failure" to provide necessary documents- which is not true, and refused to return the retainer (not to mention the thousands of dollars in tax penalties we are now facing). He is not a CPA (we later found out). So- is it legal to say you will file someone's taxes and then not do so?

 

Response 1: No, it is not. That would amount to fraud and receiving money under false pretenses.

 

and do you think we'd have a good shot in court?

 

Response 2: Yes, you do, but first thing first. Get a CPA to prepare your taxes and to stop the penalties and interests from accruing. Report this CPA to your District Attorney's Office. Lastly, get a consumer lawyer to file lawsuit against him to recover the retainer and for all the penalties and interests you have now incurred as a result of his failure to file the tax returns. Click on the link below to find local consumer lawyers:

 

http://www.lawyers.com/

 

http://www.naca.net/

 

http://www.justia.com/

 

Customer: replied 6 years ago.
What do you mean by this: "Report this CPA to your District Attorney's Office" Our new CPA?

We hired a new firm to catch us up.

What are the requirements a person must have to get paid to prepare taxes?
Expert:  Phillips Esq. replied 6 years ago.

What do you mean by this: "Report this CPA to your District Attorney's Office" Our new CPA?

Response 1: The person who took your deposit and did not do anything.

 


We hired a new firm to catch us up.

What are the requirements a person must have to get paid to prepare taxes?

 

Response 2: There is no set requirement. However, if a person is holding himself out to be a CPA when he is not, it is fraud.

Customer: replied 6 years ago.
What division of the District Attorney's office should report this to?
Expert:  Phillips Esq. replied 6 years ago.
Consumer fraud division.