IRS question

V

Victor

Senior Member
Location
midwest USA
The IRS sent me a bill for a few thousand because I did not report
some of my retirement income. My taxes were done by a professional
accountant who verified that this money is owed. He forgot to
include it. (A big basic blunder IMO) Because it is not my fault, you think I should inform
the IRS? They already know this from the form. He said that
it wouldn't matter because I still owe the money. I wonder if he made other errors.
 

Do you have to pay a penalty to the IRS? If so, then your CPA should reimburse you for the penalty. If you don't have to pay a penalty, then as he said, you were going to have to pay the money anyway so you're not actually out anything. Either way, I would be getting a new tax accountant next year. I wouldn't give him another chance to screw up.

I doubt the IRS is really interested in whose mistake it was, UNLESS it was a deliberate fraudulent attempt to defraud the government. In that case, they're VERY interested.
 
I have used the same CPA for over 25 years so I would send the IRS a check and not be too concerned if it was a simple math/clerical error.

If I didn't have a track record with the person that prepared my taxes I would ask for a full or partial refund of his fees and look for a new tax preparer.

No matter what you decide to do about your tax preparer PAY THE IRS!!!!

Good luck!
 

Everyone should learn to do their own taxes so that they can understand them.

It's not a problem now with the tax preparer programs on the market.

Do your own and then give them to a professional if you want to be sure.

This is a real kick in the rear end when taxable income is not included. I can believe a mistake but not this kind of mistake.
 
I agree with jujube and Aunt Bea above, and I seriously doubt the IRS gives a hoot whose mistake it actually was. PAY THE IRS immediately -- interest and penalties accrue at an amazing rate. If you can't do that, make a deal with them for a payment plan. The IRS probably advised your state of the error as well, so you'll probably be getting notice from your state tax bureau.

The IRS is relentless about getting their money. You don't want to end up with an IRS levy. According to the IRS website:

[h=2]"When will the IRS issue a levy?[/h] If you do not pay your taxes (or make arrangements to settle your debt), and the IRS determines that a levy is the next appropriate action, the IRS may levy any property or right to property you own or have an interest in. For instance, the IRS could levy property that is yours, but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions). Or, the IRS could seize and sell property that you hold (such as your car, boat or house)."
 
He said he will send me a check for the interest charged on the bill--maybe also a partial refund for his fee
in doing the return. I chose him because he works close by and charges 150. less than a CPA I know.
He took an inordinate amount of time doing my returns when a CPA would be quicker. And my return is not
so complicated really but I cannot do it. He is not a CPA. I am very annoyed.
 
Victor said:
He said he will send me a check for the interest charged on the bill--maybe also a partial refund for his fee in doing the return. I chose him because he works close by and charges 150. less than a CPA I know.
He took an inordinate amount of time doing my returns when a CPA would be quicker. And my return is not so complicated really but I cannot do it. He is not a CPA. I am very annoyed.
Click to expand...

I would Agree with Camper...Do Your Own taxes...via any one of the very good individual tax preparation software packages...H&R Block, Turbotax, etc....I've used H&R for years. If you can use your computer for most activities, you Can successfully do your own taxes with one of these programs....and for far less money than a CPA might charge. Unless you have a very complex tax situation, you can probably do your taxes in an hour or two, and be done with them. However, Rule One is to be sure that you report ALL sources of income.
 
I ditto what Jujube replied. Bottom line is you signed your return (either manually or electronically) and in doing so it's like saying everything was correct. One year, decades ago, I tried working on my taxes unsuccessfully. Funny thing is the accountant who came highly recommended was astonished that I was able to do it myself the year before because for some reason that year was particularly complicated. It was down to the deadline and when I picked up my taxes, I really did not look at them since I had to get to the post office. Later I realized he added $3,000 in medical bills that I did not submit to him. I was scared for quite awhile but I never got audited and I never used him again. After I retired, I got my first computer and a couple of years later started using H & R Block Tax programs.

You say you cannot do your own taxes. Why? The programs are very easy to use with step by step questions and guidance. What you answer/enter determines what winds up on your forms. And all you have to do is enter what's on your W2, 1099 INT or 1099 R, whatever tax forms you've received. There are programs for basic taxes, for investors & homeowners as well as business owners. I've gotten my Deluxe program for under $30 (Amazon) for the Fed + State and split the cost with my grandson since 5 returns can be prepared with one program.
 
I am poor with financial numbers. Plus my stock holdings are very confusing to me. One stock in particular is a partnership
that requires a special form and even the AARP tax preparers where I live won't do it or don't know how.

Before I had stocks I always did my taxes okay.

Thanks for your replies.
 

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