if an accountant makes a mistake on my tax return, are they liable for penalties or additional taxes?
- Anonymous1 decade agoFavorite Answer
The accountant is never liable for the tax.
The accountant is never liable for the interest.
As for penalties, some will pay it, but most will write the taxing authority and ask if it can be waived (so can you).
- 1 decade ago
Does your tax professional have a written guarantt, some will if they make the error will reimburse you for the associated penalty and interest initially assessed. But they only go by what you tell them, so if you didn't tell them everything then you are liable for the penalties and additional taxes.
- JudyLv 71 decade ago
Legally, you are the one who is liable. If it's the preparer's mistake, some will cover the penalties - you are still responsible for the additional tax that you'd have paid if it had been done right in the first place.
- Ms. Angel..Lv 71 decade ago
Can you prove it was the accountant error? Can you prove you provided the accountant all your W2/1099's? ETC!
The accountants file income tax returns with the Information you provide them. You SIGNED the Tax return agreeing it is "true and correct".
So by signing the tax return, you are stating you are liable for the information on the tax return.
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- asbridgeLv 44 years ago
provide up Shouting! First, you're accountable on your guy or woman tax return, regardless no count in case you pay some one to coach it, or do it your self. Secondly, the preparer makes use of information presented by you, and in case you furnish incorrect or incomplete information, or overlook to furnish suitable information, it is impossible for the return to be precise. maximum super companies like Block and Jackson Hewitt have ensures the place they pays the consequences and interest from blunders they make. It demands which you notify them at the instant (interior 30 days) of any IRS touch. you have won different notices from the IRS, which you curiously skipped over, and you probably did no longer enter into an installment settlement with the IRS. as a result, you're being garnished.
- Wayne ZLv 71 decade ago
Some firms will pay the penalties and interest associated with an error but they are under no obligation to do so.
The additional taxes are always the responsibility of the taxpayer unless you purchased some sort of extra guarantee.
- 1 decade ago
I don't think so unless you had some kind of insurance like H&R block offers other wise you need to call the IRS and straighten it out.