Have a Tax Question? Ask a Tax Expert
Hi from just answer. I'm PDtax, and can assist.
First, the good thing is the tax and penalty sounds like it is uncollectible. The only thing that will cause IRS to reopen it's case and look for payment is an increase in your income that makes such a payment affordable.
Now on to damages. You certainly look to pursue damages from your prior CPA. Litigation is possible, but you will have legal costs and an issue: actual damages. If you did not have actual out of pocket damages, litigation might not get you much.
Your state will be able to support discipline of the CPA, and contacting them is easy. Google your state and CPA license, and the disciplinary bureau will be easy to contact, and free.
I would start with the Tennessee CPA license group. They will take your complaint and look into things for you.
Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.