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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29576
Experience:  Taxes, Immigration, Labor Relations
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I had a 2008 return where I changed it from a traditional IRA

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I had a 2008 return where I changed it from a traditional IRA into a Roth IRA I now have a substantial penality. I made a mistake I tought it only had to be held for 5 years hold period with no payment of taxes. I discussed it with my accountant who conveniently forgot our discussion. Now the IRS is hitting me with a substantial penality. Does my account have any responsibilty for not calling this change and tax consequences when I filed my 2008 returns?
The IRS will hold you - not your accountant - responsible for any tax liability resulted with your tax return.
If that was a honest mistake - you may ask the IRS to forgive penalty - but generally may not expect that interest and taxes would be forgiven.

As you decided to hire an accountant - that is a civil matter between you and your accountant.
You need to review the contract you have with your accountant if it has a liability clause.
Your accountant might have a malpractice insurance which covers such situations.

Generally - if you end up in the court room - in most situations the penalties and interest would be responsibility of the accountant if resulted by accountant's actions, but you would be still held responsible for any additional taxes.

Let me know if you need any help.
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