QUESTION
Are we as accounting office responsible for a penalty/assessment for our client simply because we received the mail at our office?
Asked on May 27th, 2021 on Business Law - Alabama
More details to this question:
We receive letters from various state and federal agencies address to our clients with our address on them. We receive assessments and penalties at times. We forward this information to our clients but because we receive the mail at our location, does that make us responsible for the assessment or penalties if not paid. The client indicated to the agencies that they haven't receive the letter and that it was received by us
1 ANSWER
You are not automatically responsible, but if (a) you contracted with your client to forward their mail and didn't do so, you would have breached the contract and could be responsible for the damages caused by the breach; or (b) you undertook to forward the mail and did so negligently (e.g. by sending it to the wrong address, using insufficient postage, etc.) you could be liable for the damages caused by your negligence. Bottom line is that if you did nothing wrong, you are not liabile for your client's penalties/assessments simply because the letters were mailed to you, but if you screwed up in forwarding the mail, you could be liable.
Answered on May 27th, 2021 at 2:36 PM