Legal Question in Business Law in New Jersey
Do I have any recourse if a client stops payment on a check that she paid to me?
My questions:
*Can my tax client legally place a stop payment on my check for work that I, as a CPA, did without calling me to ask me to redo something or at least informing me that she was unhappy?
*Do I have any recourse? Can I take my tax client to small claims court (of course after my busy tax season) as a principal of matter to get my money. (It is the stop payment that is upsetting me and my loss in time)
*Can I threaten to call the IRS to request an audit of her return (because I feel it is done incorrectly) if she refuses to pay me?
*Can the client take my return somewhere else to be prepared without telling me after I completed it and was paid. Then stop payment on my check saying the other accountant gave her a bigger refund?
2 Answers from Attorneys
Re: Do I have any recourse if a client stops payment on a check that she paid to
What is your time worth? You did not say the amount of the check, but any action you take will certainly waste your time and effort. Frankly, idiot clients like that do you a huge favor by going somewhere else. Write-off the loss and move on!
Ronald J. Cappuccio, J.D., LL.M.(Tax)
Counsellor at Law
(856) 665-2121
http://www.taxesq.com
Re: Do I have any recourse if a client stops payment on a check that she paid to
I have reviewed the good advice of my friend and colleague, Ron Cappuccio, and in the final analysis, I agree with him. Specifically however, if a person believes that, (in general) there was something not done appropriately, or if what had been promised had not been delivered, stopping payment on the check may have been appropriate. With the particular facts that you have given, it appears that you may have the ability to ultimately recover. However, again, your time may be more valuable. Additionally, any suit by you may trigger a claim that you performed professional malpractice which, even if you are ultimately vindicated, will cost you more in aggravation than the value of the time that you put in. Assuming you did not sign the return as the preparer, I would take that advice that Ron gave and move on. Good luck! Rob Gleaner
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