Legal Question in Tax Law in California
tax preparer error
We received a notice of audit about 4-5 months ago, I took it directly to my tax preparer, she said she would contact me if needed. Well it has been months since I heard anything and assumed everything was okay until I received a notice demanding payment of over $5,000. It turns out that she forgot about or lost my audit letter and has not been working on it. What should I do? Is she liable for anything because she lost it and has not done anything to help me?
1 Answer from Attorneys
Re: tax preparer error
She may be liable for professional malpractice, but you would have to show that but-for her mistake, you would have prevailed in your IRS matter. If your total damages are $5,000 (plus any amount you paid to her in advance) -this might be a case better handled by an out-of-court or small claims process.
Warmly,
Bryan