QUESTION
Can I sue my CPA for malpractice on my taxes?
Asked on Apr 05th, 2014 on Taxation - Michigan
More details to this question:
In 2008 and 2009, I had total stock losses of $3 million. I just discovered that the non-accountant son under-reported my losses by about $2 million because of not understanding the wash sales rules. Since the losses are only a carry forward, the actual damages will occur next year when I sell my house and will have to pay significant capital gains that should have been offset by the under-reported losses. Questions: 1) Given that I just discovered this as can I still sue and not be time barred. 2) Does the IRS ever grant a special allowance and accept an amended return greater than 3 year old due to accountant malpractice. NB I was never informed that the son was preparing my taxes and not his CPA father. Thanks in advance for your collective wisdom.
1 ANSWER
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would certainly need more details before I could form an opinion, yes it is possible to sue an accountant for malpractice however you have two issues, one it would appear that the claim maybe time barred by the statute of limitations, which is very short and professional malpractice cases, and the other is that you should be reviewed and been aware of the contents of your various returns before you signed and submitted them.
Answered on Apr 10th, 2014 at 7:31 AM