If I wanted my taxes to be done wrong, I would've done them myself
September 3, 2014 1:24 PM Subscribe
My accountant screwed up my taxes. I'm unsure of how I should proceed.
posted by peachpie to Work & Money (14 answers total) 2 users marked this as a favorite
I earned income in three states last year. In the state where I earned the most income, they are saying I underpaid what I owe by several hundred dollars. I paid a CPA to prepare my taxes for me so I wouldn't need to deal with it -- I gave him all my year-end tax documents and paid the amounts he told me I owe. Now I have a very large bill + penalties and interest that is due tomorrow.
When I got the bill a month ago, my CPA told me he had submitted a letter requesting clarification because he disagreed with what they say I owe. I called them today to check the status of when they would respond and they told me they have nothing on file -- no correspondence requesting a reply or record of a dispute with my tax assessment. I told my CPA this and he hasn't responded to my email and he isn't answering his phone. He has kept telling me to wait for a response from the state because if I over pay the money incorrectly, it will be very difficult getting it back. But I don't feel like dealing with more interest, more penalties and, eventually, collections. (The state did tell me I will be billed a few more times before it is turned over to collections.)
Should I just pay what the state is asking me for and then next year, get a new accountant who can go back to this year's taxes and see if I overpaid any of my taxes (three states + federal)? I assume I can still recoup any over-payments in the spring of 2015, right? I have lost faith in this guy and I feel like, if it's an option, a new accountant next tax season can double check what I paid this year. Is that reasonable?
Should I send my current accountant a bill for the penalty + interest ($115)? I have every intention of paying the taxes I owe, but I paid him $150+ to prepare my taxes properly and he didn't and now I have been penalized. I feel the penalty and interest is his responsibility. Or should I see if the state will waive it instead? (To be frank, I'm very angry not just about the penalty and interest, but the fact that I thought I was caught up and now owe a huge additional sum in taxes. I had started to spend money on trips and other extra things that maybe I wouldn't have.)
I am clueless on taxes. I've always just hired a CPA to do it for me. Next year, I will obviously be hiring a different CPA.