QUESTION
can i hold my tax accountant liable for financial loss do to erroneus advice
Asked on Feb 25th, 2014 on Taxation - California
More details to this question:
my tax agent told us that it was normal for someone or withholding agents or employer to not have the correct social security number on a w-2G form so what he did was just crossed out the digit that was incorrect and told my wife and I that he was doing the right thing. now after years of trying to find the truth about the tax that was withheld by the person who send my wife fraud documents along with misleading and fraudulent information on tax withholding that taken from my wife when at the time she was a nonresident of the U.S but the worse thing was that most of the IRS agents that I have talk to didn't want to tell us the answer about who is liable to pay or if the withholding agent filed and paid this tax under the right SS number or that should this be audited because the social security number didn't match but only agent from IRS had the heart to tell us what to do and where to go but to be turned away and told the wrong thing again and again now I do no the truth.
1 ANSWER
Taxation Attorney serving San Diego, CA
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AB Tax Law, Law Office of Adam Brewer
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You said W-2G so I am assuming this is for gambling winnings. If not, correct me, but the advice is generally the same whether the income was from gambling (W-2G) or wages (W-2).
It sounds like there are several issues at play here. Accountants may be held liable like most professionals for breaching their duty of professional conduct. Whether the accountants advice falls below the level owed to your wife as the client is a question better suited for a civil attorney.
As a tax attorney, my concern in this matter would be whether the funds withheld from your wife were probably deposited with the IRS and State. Additionally, if the funds were not properly allocated, does your wife now have a tax liability owed to the IRS or State or is she owed a refund.
I would say the first step would be to request transcripts from the IRS to determine what was reported to the IRS and what was deposited in the form of withheld taxes. From there, you will have a better understanding of what mistakes were made by either the withholding agent or the accountant.
Best regards,
Adam Brewer
Answered on Feb 25th, 2014 at 1:08 PM