The IRS Audit Blog

Posts Tagged ‘irs tax audit’

Question: Can you sue your CPA or tax preparer if the IRS audits your tax returns and finds a mistake made by the CPA?

I was audited by the IRS for my 2004 federal income tax returns and they found an error, which then affected my 2005 federal returns. I am being charged interest for both years. I am appealing their decision but I would like for my CPA who prepared my returns to share in the mistake. Is it possible to sue your CPA for such mistakes and is it common to sue the tax preparer for mistakes on income taxes? It appears that the CPA was either not aware/familiar with a tax law or just made a mistake. Whatever the case, I was audited and I have to pay for this mistake because I signed the tax returns. Please help!

Answer: You can’t sue the CPA for the tax amount, you would have had to pay that amount anyways. As for the interest, you had use of the money for the time that you didn’t pay the tax on it, but you could ask the CPA to pay for the interest. If there is any penalty the CPA should definitely pay for that. Also, you might see if you can some of the tax prep fee you paid returned to you. You might also want to look for another tax preparer, one who is more up-to-date on tax law changes. If the CPA refuses to pay anything, then you could sue him, more than likely in small claims court, and also report him to your state’s CPA society.

A Small Group of Major Corporations Commit $500,000 to Help Churches in Nine U.S. Cities

National Church Purchasing Group, Inc, the Nation’s Largest Ministry Group Purchasing Organization Has Partnered With Ricoh Global and Several Other Major Corporations to Provide Major Funding to Help Churches Develop Their Ministry.

IRS Audit Help

Question: tax filing – who is responsible for errors?

If a taxpayer sincerely depends on a professional tax preparer’s expertise & provides all requested back-up records, yet tax “expert” makes errors on the return (carelessness, ignorance or advocating a strategy not accepted by the IRS) who is responsible for the penalties & interest incurred from an audit – the paid tax professional or the filing taxpayer?

Answer: yes, the ultimate responsibility falls upon the taxpayer. the taxpayer is responsible for all tax, penalties, and interest.

however, some preparers will offer to fix the problem free of charge and even pay the penalties and interest (if you go back within a reasonable time) if it was truly his fault. the tax was always your responsibility.

now, if it was your fault. then you are responsible for all fees.

E-mails show pattern of county employee running other business

A Hamilton County employee who ran a private business using his county computer received a formal written warning for failure to follow county employment policies.

We Can Help You Avoid the IRS 6707A Penalty

Question: Does claiming child care in taxes affect the care provider?

I paid for child care this year to 2 different individuals throughout the year. I just found out that I can claim this expense in my tax returns (new mom, that’s why I JUST found out), but I’m worried this would trigger something with the IRS and the 2 providers will be audited for not reporting this income.
I did not go to a professional provider (like daycare), I just took my baby to individuals that do not have an actual business, so I doubt they would be reporting this income.
I know I have to get their complete personal information in order to file, but I’d like to know if this will affect them before I ask for their socials.

Thanks for your help!

Answer: Of course it will. . They have to pay taxes on that if you expect to claim it

Still More Foreign Account Worries!

Already feel bombarded with admonitions about reporting all income and disclosing foreign bank accou

Financial Planning Advice : What Triggers an IRS Audit?

Question: Do I have to do anything special to report tips to the IRS?

I work for Domino’s and was wondering if when tax season comes I have to fill out anything special in regards to tips. Domino’s reports all of my tips to the IRS and takes taxes directly out of my paycheck for tips. Will I have to pay additional taxes on my tipped earnings or has Domino’s taken care of everything for me? Obviously I have kept all of my driver’s slips for each delivery which include the amount of the delivery, tip received, and whether it was a credit card transaction in case I get audited, but is this all I have to do? Thanks.

Answer: If you reported all your tips to your employer, you don’t have to do anything. The tips will be included on your W-2.

Forensic Audit Report Released

Your taxes could have been affected due to poor record keeping in the Elmira city school district.

How to Avoid an IRS Tax Audit : How to Report Business Losses on Schedule C Tax Form

Question: Why doesn’t the IRS audit where the tax money is being wasted?

They audit people and business, why not our politicians and our tax dollars?

Answer: ask your mama lol

Tax Tip: Don’t Call The IRS

Phone service deteriorates as Congress loads on complications

How to Avoid an IRS Tax Audit : Common IRS Tax Form Mistakes