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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29579
Experience:  Taxes, Immigration, Labor Relations
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My name is ***** *****, my tax preparer filed my extension

Customer Question

My name is ***** *****, my tax preparer filed my extension last year using my old companies EIN instead of my current EIN, this resulted in penalties for a late filing of almost $2000, can he be held responsible? He is an APT
JA: Thanks. Can you give me any more details about your issue?
Customer: I am just trying to find out if a complaint against him is justified. I contacted him and he refuses to absorb or help offset the costs, it was his error
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Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Your position is absolutely justified - and you have rights to seek a compensation for damages because your tax return was not correctly prepared.
But that is a civil matter between you and your tax preparer - and based on the contractual obligation of parties.

I bet that your tax prepare have some arguments why he should not be responsible...

If you are not able to negotiate - the only resolution would be to sue the tax prepare for damages.

Customer: replied 1 year ago.
I asked the IRS to waive the penalties and they denied my request, it looks like there is an appeal process, do you think that would be worth a try?
Customer: replied 1 year ago.
I was also thinking about filing a complaint against the tax preparer with the BBB, would that be an appropriate course of action?
Expert:  Lev replied 1 year ago.

That would be penalty abatement request.

You might need a local CPA to help you with such request.

You would need to state the type of the penalty relief you are requested and support your position that you qualify for THAT relief.

Expert:  Lev replied 1 year ago.

For instance -

You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service's First Time Penalty Abatement policy (FTA) if the following are true:

  • You didn’t previously have to file a return or you have no penalties for the 3 tax years prior to the tax year in which you received a penalty.
  • You filed all currently required returns or filed an extension of time to file.
  • You have paid, or arranged to pay, any tax due.

Another possible option would be Reasonable Cause Penalty Relief.

See more details in the following document


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