Legal Question in Tax Law in New York

Taxation Mistake

An attorney/CPA made a mistake on a tax return involving a pension. They took a deduction for someone who is 59 1/2 + years old ($20000) when the client was not this old. This audit is from 06 and the IRS wants $800 + interest. Plus the other years this mistake was made. I know you are ultimately resposible to the IRS but Is the CPA responsible to the client?? If so how? thru lawsuit? thanks


Asked on 5/20/09, 7:14 pm

1 Answer from Attorneys
Norman Nadel Norman Nadel, Esq.

Re: Taxation Mistake

Frankly, it is hard to determine what your damages might be. The correction of the tax return requires a payment that you would have made had the tax return been properly prepared. You had use of the $800 so an interest charge is not unfair. You might claim that the interest charged by the Internal Revenue Service is higher than the interest that you might pay to a bank, but this is a relatively small amount. Had a penalty been imposed, you would have had a stronger claim.

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Answered on 5/21/09, 9:08 am


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