1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

Error by tax accountant

Discussion in 'Non-Vegas Chat' started by JWBlue, Oct 15, 2012.

Thread Status:
Not open for further replies.
  1. JWBlue

    JWBlue VIP Whale

    Joined:
    Feb 24, 2010
    Messages:
    1,660
    Location:
    Irvine, CA
    Trips to Las Vegas:
    10
    My mother had her taxes done two years ago by a tax accountant.

    She received a notice recently from the IRS that the income from a 1099-R was left off her 2010 tax return.

    She now owe the taxes on the income plus a $73.00 interest charge.

    Should she ask the tax accountant for the $73.00?

    The accountant is obviously liable.

    What does etiquette dictate in this situation?
     
  2. Nevyn

    Nevyn VIP Whale

    Joined:
    Apr 13, 2007
    Messages:
    4,188
    Trips to Las Vegas:
    9
    About the accountant being 'obviously liable', the question would be whether she gave him the form that reports that income. If she did and he ignored it, that would be a fair statement.

    But assuming this is just someone she took all her forms to to do her taxes, he can only work with what she gives him.

    Just sayin'
     
  3. captainron62

    captainron62 VIP Whale

    Joined:
    Oct 2, 2011
    Messages:
    3,242
    Location:
    Tampa, FL
    Trips to Las Vegas:
    19
    I have been down this road quite a few times. As a friend of mine said, when you get a letter from the IRS and its for a small amount, just write the check and move on. I just got one a few weeks ago $78, all over not reporting some interest income it says. I sent a check.

    Most accounts are like attorneys, and mine is an attorney, so getting money off them for a "mistake' is like pulling teeth.
     
  4. JWBlue

    JWBlue VIP Whale

    Joined:
    Feb 24, 2010
    Messages:
    1,660
    Location:
    Irvine, CA
    Trips to Las Vegas:
    10
    I am thinking more about etiquette than whether the accountant should pay.
    She provided all the tax documents and the accountant made an error.

    Someone tried to make the point that since she did not pay the tax on that amount when she filed in 2011 she was given the time value of money since then. I am not sure I buy that. That would only apply if she actually invested it.
     
  5. captainron62

    captainron62 VIP Whale

    Joined:
    Oct 2, 2011
    Messages:
    3,242
    Location:
    Tampa, FL
    Trips to Las Vegas:
    19
    I understand, but you are talking etiquette with an accountant/attorney. I have dealt with both for over 15 years and not seen any sort of etiquette when it comes to the almighty dollar. If it was an honest mistake and she owes the money anyways then pay it.

    If you think the money is solely owed because of his error then point it out to him and ask him to fix the problem. Either way I doubt you will see a check from him.
     
  6. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

    Joined:
    Nov 2, 2001
    Messages:
    12,917
    Location:
    Tennessee
    Trips to Las Vegas:
    37
    And if he doesn't, use another accountant. Plain and simple.
     
  7. JWBlue

    JWBlue VIP Whale

    Joined:
    Feb 24, 2010
    Messages:
    1,660
    Location:
    Irvine, CA
    Trips to Las Vegas:
    10
    I am going to tell her to ask for the interest.

    Then threaten a negative review on yelp.com.
     
  8. S'AllGoodMan

    S'AllGoodMan High-Roller

    Joined:
    Mar 13, 2010
    Messages:
    562
    Location:
    CT
    Trips to Las Vegas:
    30
    You should go through the packet her accountant gave her to make sure the 1099 was indeed given to him. It's usually in the front pocket or attached to the 1040 form itself in the packet.

    My money's on that the 1099 was never given to the accountant. That doesn't mean your mother never gave it to him, she may never have gotten it herself to pass on. That's not uncommon.
     
  9. kitson

    kitson VIP Whale

    Joined:
    Apr 20, 2004
    Messages:
    1,881
    it sounds like the mistake is very specific and related to one form.

    if the accountant got the form, and missed it in the pile, then it is his fault.

    if this accountant has done her taxes for other years, and they have a relationship in that way, he should be forthcoming about how it got missed. if he is not above board, then she needs to get away, but if he owns up, it should be really easy for your mom to ask for a 73 dollar credit on the next years tax prep bill, guessing that is about half an hour.


    you do not mention any kind of financial difficulty for her coming up with whatever amount of money is due that would generate a 73 dollar interest bill in two years...500 bucks at 7%?


    need a few more details to know why the accountant is obviously liable. i also disagree a little with captain ron, i think the accountants i know had the intelligence to be lawyers, but just had too much honesty to overcome to make that career choice.
     
  10. hammie

    hammie VIP Whale

    Joined:
    Sep 18, 2006
    Messages:
    2,373
    Trips to Las Vegas:
    5
    Was there a 1099-R issued the prior year? If so, the accountant should have picked it up when completing the latest return.
     
  11. Brensan

    Brensan Low-Roller

    Joined:
    Sep 27, 2011
    Messages:
    366
    Location:
    Near Houston, TX
    Trips to Las Vegas:
    53
    Thank you Kitson for saying that. I was taking offense to Captain Ron's comments. I am a CPA and own my own practice. We immediately scan everything the client brings in, compare it to the previous years information, send emails questioning any differences or ommissions, check and double check our work, and then go over it line by line with the client. But still, we are human and mistakes can be made. All my clients know that I stand behind my work 100%, and they also know I want to see any letters that they receive from the IRS. If the mistake was mine, I would either pay the penalty and interest, or credit them on their next return. Afterall, most CPAs carry an Errors & Ommissions insurance policy for this very reason.
     
    BEAU RIVAGE - Super Bowl weekend
  12. captainron62

    captainron62 VIP Whale

    Joined:
    Oct 2, 2011
    Messages:
    3,242
    Location:
    Tampa, FL
    Trips to Las Vegas:
    19
    I guess I didnt word it so well, what I basically was referring to was the "etiquette", to me etiquette and tax business dont mix. When I have had mistakes my acct does one of two things, he either says we missed something, you owe it so pay it, or says we will file and addendum and fix it. He has never said nor would I expect "that was my mistake, let me get my checkbook out."

    In no way was I saying CPAs are rats or anything of the sort. I read it again and I dont think it read that way, it certainly wasnt how I meant it.
     
  13. Brensan

    Brensan Low-Roller

    Joined:
    Sep 27, 2011
    Messages:
    366
    Location:
    Near Houston, TX
    Trips to Las Vegas:
    53
    No apology necessary! Just sounds to me like 1) your accountant makes too many mistakes (or doesn't ask enough questions), and 2) you need a new accountant. LOL
     
    BEAU RIVAGE - Super Bowl weekend
Thread Status:
Not open for further replies.