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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29965
Experience:  Taxes, Immigration, Labor Relations
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Is a Tax accountant responsible for an error he made ...

Resolved Question:

Is a Tax accountant responsible for an error he made on a Tax Return if I can prove I gave him the correct information and he made a mistake. Reported Taxes taken out of check was 8000.00 and he filed the return with a total of 9000.00 in taxes taken. Should he have to pay the IRS the 1000.0 and the interest?
Submitted: 9 years ago.
Category: Tax
Expert:  Lev replied 9 years ago.

Yes, the tax preparer - as any other professional - may be held responsible for the mistake.

However - as that was your decision to hire a tax preparer - the IRS will hold you responsible for any mistake on your tax return - and you in turn may ask the tax preparer to compensate your damages or even sue that person.

While that depends on your contract with the tax preparer - the usual practice is that the tax preparer would compensate you with penalties and interest, but not with taxes. Normally - any professional has some kind of malpractice insurance that cover such situations.

I would suggest to contact the tax preparer and claim your damages. If you will not come to an agreement - you may sue him/her.

Lev and 4 other Tax Specialists are ready to help you
Customer: replied 9 years ago.
Can he be held responsible for the 1000.00 overpayment that was made to me a year ago in. He admitted he made the mistake and said he would only pay the interest
Expert:  Lev replied 9 years ago.

Actually - you may request him to compensate you with that amount, but if you sue him - it is unlikely that the judge would support such a claim.

The reason is that this amount you should pay to the IRS and it was left in your pocket - so it is not considered as damages.

Most tax preparation firms offer some type of insurance that cover your additional tax liability. For instance HRBlock offers so-called Peace-of-Mind - - under that coverage your taxes would be paid. Most my clients purchase the coverage unless they opt not to.

While I understand your frustration but unless that compensation is included into your agreement - it is unlikely you may recover that amount.