our accountant made a $5000 mistake on our tax return. the irs wants their money back! what responsibility should the accountant take in this matter?
1 Answer from Attorneys
Generally, tax preparers are not liable to the IRS for mistakes made in filings, although the taxpayer on whose behalf the return was prepared is liable.
However, you may sue the CPA for malpractice if your business relied on the CPA's negligent advice or for negligence in preparing the return. An affidavit from an expert must be filed along with the complaint.
You can also file a complaint with the Georgia State Board of Accountancy, but merely filing a complaint with the Board will not allow you to recover damages from the CPA.
If you would like to give me a call, we can discuss your options and the likelihood of successful recovery.