QUESTION
What can I do if the accounting company was not able to fix our tax filing?
Asked on Jan 10th, 2012 on Taxation - Alabama
More details to this question:
What do I do about an accounting firm that did not do my back taxes as agreed and now I have been served with final papers from the IRS? We received a demand for our 2008 taxes from the IRS just recently. We hired an accountant company to help us previously settle this kind of technicalities. As requested by the accountant, we gathered all the information and delivered to them. During this time, several requests for additional time were made by the accountant. We received approval from IRS & passed on to accountant, between then & now we received several notices from the IRS about not receiving the 2008 filing by the promised date. We faxed copies to accountant. We asked what was going on but they always say that they were to get back to us though they never did. They did not call and just left a mess. I still have not heard from them. They have not called or returned any messages. The account company already has all the paperwork. Now we received a "Final" estimated tax amount owed notice of $10,000.00 for the 2008 tax year. We have 10 days to pay but we do not have that kind of money. Is there anything we can do about this accounting company's irresponsibility and getting us into this mess?
1 ANSWER
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My advice would be to contact a different CPA and get them to complete your 2008 taxes. Your number one priority is to get your returns filed with the I.R.S. as soon as possible. If the notice you received from the I.R.S. simply indicated the amount owed, and gave you a date by which to pay that amount, you shouldn't worry too much. These types of notices are sent for quite some time, and aside from accumulating additional interest on the amount owed once past that due date, there are no real consequences to not paying that debt. The I.R.S. will not be able to collect from you unless they have sent out a letter entitled "Final Notice of Intent to Levy," or "Final Notice Before Seizure." The notices that you are receiving now, while important, are probably not final notices prior to collection action. However, just insure that they do not indicate that they are final notices, and keep an eye out for any type of notice that says it's a final notice. Once your return is filed, the assessment that the I.R.S. has calculated should change. Often the I.R.S. files a substitute return on your behalf, and these returns show an exaggerated amount owed due to the I.R.S.'s practice of not including various deductions, credits, and exemptions that you would normally claim. Again, your first step is to get this return as filed as soon as possible. Once that is complete, you will need to contact your previous accountant to discuss having your fees reduced or refunded due to their inability to complete the task for which they were paid.
Answered on Jan 25th, 2012 at 2:34 PM