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Richard, Attorney
Category: Legal
Satisfied Customers: 55607
Experience:  Attorney with 29 years of experience.
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I got audited by the NCDOR for 2008, 2009, & 2010. I have the

Customer Question

I got audited by the NCDOR for 2008, 2009, & 2010. I have the results. I payed a tax preparer to file my taxes. What do I do? I owe about $10,000 and I trusted this Firm to file my taxes.
Submitted: 5 years ago.
Category: Legal
Expert:  Richard replied 5 years ago.

Good morning. It depends. The tax preparer would not be liable for the taxes owed in any case because the taxpayer would have owed the tax anyway. As to whether or not the tax preparer would be liable to the taxpayer for any interest and penalties, that will depend upon what caused the additional taxes to be assessed. If the tax preparer was negligent in the preparation of the return, then the tax preparer would have liability for the interest and penalties. But, if the additional tax was not as a result of negligence, but rather due to certain deductions being disallowed or not substantiated such as business deductions, charitable deductions, car allowances, etc., then the fault would lie with the taxpayer and the tax preparer would have no liability.

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Customer: replied 5 years ago.
This tax preparer prepared the filings wrong according to the NCDOR. He did not show that I owed anything. Can I sue the firm for the whole amount owed including the actual taxes from the 3 years? Shortly after the audit, he died. Can I sue the firm?
Expert:  Richard replied 5 years ago.
You can sue the firm for the interest and penalties. You would not be able to sue for the taxes because had the return been filed properly, you would have owed them anyway....thus those are not damages to you.
Customer: replied 5 years ago.
Do you think the NCDOR will take payments or will they demand all of the money at once? I don't want to go to jail because I don't have the money.
Expert:  Richard replied 5 years ago.
One, you will not go to jail just because you can't afford the tax payments. Two, a taxpayer unable to pay the full amount of taxes due can deal
with the IRS in one of two ways: i) if the taxpayer can pay it within 60
months, the IRS will work out an installment payment arrangement with the
taxpayer; if the amount due is under $50,000, the taxpayer can do this on-line;
or ii) if not, the taxpayer would want to file an application for an Offer in
Compromise where the IRS will agree to forgive all or a portion of it that
can't reasonably be paid within the 60 month period. There is a step by step process for filing
the Offer in Compromise application, as well as the full details of the
program, in the IRS Offer in Compromise booklet which you can find at the
following website:
Richard and 3 other Legal Specialists are ready to help you
Customer: replied 5 years ago.
Thank you for your help.
Expert:  Richard replied 5 years ago.
You're welcome. It's been my pleasure to be able to assist you! Take care.