Issue with IRS resulting from tax preparer omitting info?
Wednesday, September 24th, 2008 at
6:21 pm
deniseL asked:
In online pharmacy 2006, went to tax preparer.Now in 2008 I got a notice that my income was adjusted due to omitted 1099-R forms.
I not sure if i should seek legal assistance from a tax attorney, go back to the preparer who omitted the info or just to the IRS in my area and work it out. The sum owed is 6300.
In online pharmacy 2006, went to tax preparer.Now in 2008 I got a notice that my income was adjusted due to omitted 1099-R forms.
I not sure if i should seek legal assistance from a tax attorney, go back to the preparer who omitted the info or just to the IRS in my area and work it out. The sum owed is 6300.
Tagged with: Irs Info • Irs Tax • Tax Attorney • Tax Preparer
Filed under: Lawyer FAQ
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Why do you think the preparer omitted the 1099-R? Did you take it with you to the session or not?
You can’t exactly fight the missing 1099-R. It *is* income, there are penalties and interest.
The preparer *may* pay the penalties and interest, but only if you can show they made a mistake.
There’s not a lot to work out – if you owe the money, you have to pay it.
You’d have a hard time showing that it was the tax preparer, not you, who left it out. And since you are the one responsible for reviewing your return, it’s your responsibility anyway. To owe that much, that had to be a very large sum omitted.
Take 1099-R to your tax preparer so that he does amended tax return. If he/she made a mistake, he/she should do it free. There is nothing tax attorney can do.
It was your responsibility to go through you return before filing. It is your return.
Unfortunately, the taxpayer is liable for all taxes and penalties.
However, the large companies like H/R Block will go with you to explain how your taxes were prepared. If it’s their error, they will pay the penalties, but NOT the taxes owed. Usually you can work out a payment plan with the IRS, especially a private taxpayer.
Get Turbo-tax, they ask every possible question under the sun and give the same guarantee. Make a separate folder for tax information and make sure put the paperwork in it every time. You should be familiar with the paperwork you receive and notice anything missing.
I don’t think an attorney will do anything but cost money. The IRS will simply apply the correct statute and ask for the money. Did you forget the 1099 or lose it? Too bad, if you had caught it earlier you could have amended you return.
Good luck!
Sorry but I must disagree with your statement: “tax preparer omitting info”.
First of all your tax preparer filed your taxes with the information you provided at time of filing.
Second you signed the return agreeing that all was true and correct.
You must now file an amended tax return if you choose to do it yourself or take it to the same tax preparer is your choice, but don’t go the preparer and tell them they “omitted” because it was not their fault.