PLEASE HELP! We truly need your expertise on our filing income tax returns!

[Light63]

I just don't know how to solve my family's filing income tax return problem. My CPA accountant filed for an extension back in April to extend our small business and personal income tax returns, and I've been trying to contact him via email and phone calling throughout the summer months to ask him to complete my income tax filing, to no avail. Either no one picked up the phone, or when they answered the phone, they kept on telling me that they were still working on the filings. They told me that they will email me the items that they would need to do the filing. I kept waiting for months without receiving the email nor the phone calls until 4 weeks ago. Two days later I gathered and mailed to their office all of the items they requested. About three weeks ago, I drove up to his office to check for the status. Well, the person who met me that morning told me that the business income tax filing already past. I angrily asked how come my accountant did not notify me; the person then replied that it was my responsibility to know. I told them I've been trying to contact them for months, and even when I got a live person, I was never told of the deadline date to file the business income tax. The person then said I could go to another office to file my income taxes! I asked him whether their office has received the package that I mailed them. He went back and brought out my package which was not even opened!!! I swallowed my pride and anger since I know it was too late to search for another CPA.

Since tomorrow, Monday, 10/17, is the deadline to file the personal income tax. Please advise me whether I should wait for them to call me to come to their office to sign the electronic filing or to drive to their office. To be honest I don't have the confidence that they will complete my filing. What government office should I contact to report this unfortunate situation. What should I do? My wife and I are very scared what would happen should our accountant could not complete in time!

PLEASE HELP!!!

[elleng]

1. First, don't be scared,

nothing to fear (except perhaps interest/penalties of some sort.)

Seems to me negligence of some sort is involved. I WOULD seek another CPA, ASAP; remove these issues from the hands of this firm.

[pangaia]

2. Just find another accountant.

You are getting the run around

Also don't panic
The gov will take your return any time. I was once 3 years late several years in a row. Penalty wasn't bad

[msongs]

3. your CPA is probably licensed by your state. I would file a complaint as well as getting a new

tax person

try and get them to respond in writing about anything related to their delay. send them a questionaire for them to answer

[TheDebbieDee]

8. Also, it wouldn't hurt to file a complaint with the BBB....

And Google for this tax service and see if there is a forum of other customers that have been stiffed by this accountant - other customers may be able to tell you how they got their money back or complained or whatever...

[napi21]

4. It's unlikely the new accountant will be able to complete your return in one day, unless it's

a very simple return. I recommend you contact another accountant, get a commitment that they will complete your return, then ask what they would suggest. Maybe the IRS as some method of dealing with situations like this one and get you off the hook on failure to file in a timely manner penalty. I've been out of the tax filing business for 20+ years but someone with current experience should be able to help you.

Geeod luck, and let us know how this works out for you.

[radical noodle]

6. Although we don't have a business

we had a similar issue with an accountant a few years ago for our personal taxes. When the accountant caused us to have a monetary loss due to not filing things on time, we sued him in small claims court. We had our case down cold and didn't have an attorney represent us. Our accountant and his lawyer waltzed into the courtroom and kind of smirked as though this was a lost cause but we won because we could actually prove everything we said with hard copies of things from the IRS and a timeline of how things occurred. The attorney had to pay us every cent that we lost.

[Cicada]

7. The IRS can waive late filing penalties for "good cause." This is classic good cause.

Many many people file late. If you do not owe tax and file within 60 days of the due date then the penalty is zero. Even without good cause. If you have failed to pay by April 15 90% of the tax you owe then the IRS may penalize you 25% of the unpaid tax. If you can file tomorrow do so. Otherwise be sure to file by Dec 14. Relax this is very common, hardly the end of the world. If you are penalized because of your preparer's failures make him pay. If he will not pay report him to the agency which regulates him or her.

[Light63]

11. Thank you, everyone.

I will let you know what happens tomorrow. I truly wish that he will complete our filing on time tomorrow. It's just that we have never gone through a situation like this. We will definitely look for another accountant in the future.

[Sgent]

10. Get another accountnant

and file as soon as reasonable.

If you know you will owe money, go ahead and pay tomorrow the amount you think you will owe -- you can do so by filing a 1040V and don't need an accountant to fill it out.

You will owe penalty for two items, late filing, and late payment. The penalty is 5% / month (each) of the unpaid amount. So if you don't owe them anything, there will be no penalty. Most likely the IRS will forgive the penalty when you explain your situation.

You will owe interest of less than 5% / year as well, this will most likely not be forgiven.

If your accountant is a CPA, you can report him to the board of accountancy in your state.

[Warpy]

12. Get a lawyer

A tax lawyer at this point is necessary because of the business filing. Don't open your package (which I sincerely hope is in your possession) as the cancellation date on it will prove there was no malicious intent on your part to avoid taxes.

Take the lawyer's advice on this one. Throwing yourself directly on the mercy of the IRS doesn't always work all that well if you get an agent having a bad day. Even with the lawyer on your side, there might be penalties. He'll help you recover those from the incompetent CPA.

Then try to locate a better CPA.

[Vinca]

14. I would hire a lawyer, notify the IRS and beg for understanding and get a new accountant.

In that order. The worst case scenario is that you'll get hit with a penalty and I think you'll be able to appeal that. If you do get stuck with a penalty I'd consider suing the incompetent accountant. I know it's easy to say, but don't freak out. It will get straightened out.

[Democrat 4 Ever]

20. Unless the returns are extremely complicated and need the expertise of

a tax attorney, I would not incur the expense. The IRS is more than willing to work with you but if after trying to work out any issues unsuccessfully you can contact the Taxpayer Advocate Service (TAS). They are free, IRS employees whose job is to represent the taxpayer with issues with the IRS. You first have to get the IRS to correct or work with you on problems before a case can be accepted into TAS but if you are unsuccessful contact them. You will be assigned one person to work with, they have expertise in all tax issues and have a good track record in getting issues resolved. No long holds on a phone line you can never get through to a live person. Best kept secret at the IRS.

[Light63]

16. I'm at the accountant's office.

Well, I'm at the accountant's office. I'll wait until 9:30 CT to go in. I remember they said that was the time he arrived at the office. I kept on telling myself to remain calm but the anger is at the boiling point! Why should I have to be in this situation?

[elleng]

17. We hope you had some success.

Please let us know.

[bhikkhu]

18. Depending on how complex your business is, you might think of doing it yourself

I ran a small retail business with my wife for years, and always did my own taxes. We ran Peachtree software and kept up on the books fairly well, closing each month on time and printing the financial reports using the software; there wasn't much more to do at the end of the year but some review, and filling out the IRS forms. When I worked at a small automotive shop it was the same deal, the boss wasn't much on bookkeeping so I made sure things were up to date (using Quickbooks there) and printed off the financial reports every month. At the end of the year he had an accountant file the taxes, which was easy given a good set of books.

A few years ago I found I could file everything, including the business, through turbotax, which made it even easier.

In any case, calling the IRS to notify them of the current problems is the best thing.

[Democrat 4 Ever]

19. File and pay your taxes as quickly as possible. There will be penalties if you did not pay the

the tax that would be due on your return. By tax law the IRS cannot abate interest but if you have a good filing history they will abate a first time penalty. If you can prove through phone records, the postmark on the documents you mailed to the CPA , certified mail receipts, etc. will go a long way toward your good intentions to timely file. If your accountant is a CPA they are licensed by the state. File a complaint with their ethics committee. If you are due a refund there will be no penalties or interest. Just remember that you have three years from the due date of the return to claim a refund or you lose it. 2015 refund statute expiration date is April 15, 2019.

Your preparer is correct that it is up to each taxpayer to timely file and the taxpayer, not the preparer, is responsible to ensure it is correct. It is extremely important you know and trust someone you have turned over your most important financial information to. The signed jurat on that return attest under penalties of perjury that the return is accurate. Honest mistakes can be fixed but fraudulent returns are a whole other kettle of fish. I'm not suggesting you are doing anything wrong but the number of outright fraudulent returns filed by bogus preparers each year is staggering. They give you one copy of the return and tell you the amount of your refund and file a return claiming credits you weren't claiming. They then electronically file, request the refund split between your bank account and the fraudulent credits into their account. You will never know the difference until a couple of years later the IRS reviews your return and determine you received too much refund and send you a notice to pay back a refund you never received. Takes forever to get preparer fraud on your account corrected.