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Hi, my name is Mark. I will be happy to help you with your questions.
You are absolutely correct. The CPA should have caught that the K-1 was not included on your return.
Of course you should be responsible for the unpaid tax, but the CPA should be responsible for any penalties and interest associated with an error.
If this was a new K-1 then I could understand the CPA taking that position, but where the k-1 was received in prior years this is clearly the CPA's error.
What state is the CPA in?
The basic information of the K-1's would be carried over by the software. This should have brought up a red flag when there were no amounts that were entered.
I was looking at the Texas State Board of Public Accountancy site regarding filing a complaint for misconduct.
If you do enough returns you are going to make a mistake. There is no way around it. But the CPA needs to be accountable for the error.
Filing a complaint may say you the cost of an attorney.
I am not sure how long the complaint process works but it would at least create an uncomfortable situation for the CPA. A business attorney would be the next suggestion.
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