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if my cpa makes a mistake on my tax return then who is liable
== ans ==
YOU are always entirely responsible for your income tax return, in all aspects and all ways.
You and whomever you have prepare it may have an agreement as to them reimbursing for errors. But, as you may expect, it would be for real true foolish errors on their part, that they could or should have not done - as in if they simply added something up wrong.
However, if the problem is because of information provided (or not provided) to them, or a tax position they said you had available to benefit you, (that by signing the return) you agreed to take - but is found improper and disallowed, then you would be expected to pay the amount of the correct tax - which of course is the same amount you would have paid had it been done "properly" originally.
Depending on how they presented it to you, and how much they charged to do so, penalties (which they can normally get abated) if any, they may agree to pay. Interest charged, as it is offset by the interest you received on the money you didn't pay, is rightfully still your responsibility.
Certainly IF THE ERROR IS ENTIRELY DUE TO THEIR ACTIONS, not that you forgot about some income, didn't document some expense you claimed, etc., they should not charge any fee's to handle the problem and defend what thye recommended.
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∙ 12y ago
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Do you have to file a joint tax return with your spouse if you don't work?
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Are tax services responsible if you are audited by the IRS?
The tax preparer, like H&R Block or Jackson Hewitt, does have a responsibility to you, which is why they sign your return. But they are responsible primarily for any mistakes in their preparation - they are not liable if you misrepresented your earnings.
Do you always have to file a consolidated tax return if you file one this year?
If companies file a consolidated tax return do they become liable for each other's liabilities
Can an executor be held personally liable for the estate tax?
can the executor be liable for estate tax
What happens if you don't file an income-tax return?
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Are municipal taxpayers liable for municipal mistakes?
Municipal taxpayers are not legally liable for municipal mistakes. Instead, rising municipal damage claims and awards in municipalities effect taxpayers through the an increase in property taxes. When municipalities must pay a large settlement as a result of the system of joint and several liability, or experience increases in insurance premiums, this expense is past onto municipal tax payers through an increase in property tax rates. Therefore, municipal mistakes can often lead to an increase in taxes for municipal residents.
Who is liable for Turnover tax?
The person whose annual turnover is above 5,00,000. He is liable to pay tot tax
In Ohio if you marry someone who owes taxes are you liable?
No, the only person legally responsible for tax liability is the individual(s) who signed the tax return. However, the non liable spouse should keep in mind, that some marital property can be subject to attachment in such matters even when the marriage occurred after the tax liablity was incurred.
How do you use the word mistake in a sentence?
The essay was full of mistakes. "Make sure to correct your mistakes!" the teacher instructed.
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Assuming we are talking about filing federal income tax in the US...No, you don't have to file a joint tax return, but you will probably pay more taxes or lose some tax credits if you file separately.When is it a good idea to file separately? If you think your spouse is evading taxes and you may be liable if you file a joint return, then you should file separately.
Is TDS a Direct Tax or Indirect Tax?
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