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IRS Audit - Tax Guys Mistake UPDATED Login/Join 
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Well hell...I got a letter from IRS today nicely asking for some info about a 2015 return...No big deal, or so I thought.

When I looked at return I saw that my tax guy put in that I had 63.536 business miles as opposed to reality which was 6353 resulting in a pretty damn big deduction error.

I am literally sick to my stomach over this and have sent him an email but I am not sure what to do from here.

Time to find a new tax guy

This message has been edited. Last edited by: Kevmo,
 
Posts: 3133 | Location: Peoria, AZ | Registered: November 07, 2002Reply With QuoteReport This Post
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Mistakes happen.

I had that happen on my return about 10 years ago. My CPA (or staff) that I had been with for years transposed a number. As a result, I underpaid my taxes by a couple thousand dollars. When IRS caught it, I paid the tax I owed and my CPA took care of the interest and penalty. He's retired now, but I'm still working with the firm.
 
Posts: 6584 | Location: The Red part of Minnesota | Registered: October 06, 2002Reply With QuoteReport This Post
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quote:
Originally posted by MNSIG:
Mistakes happen.

I had that happen on my return about 10 years ago. My CPA (or staff) that I had been with for years transposed a number. As a result, I underpaid my taxes by a couple thousand dollars. When IRS caught it, I paid the tax I owed and my CPA took care of the interest and penalty. He's retired now, but I'm still working with the firm.


I get that mistakes happen but this is 2nd one in 2 years. Last year he reported my wifes income as 1099 instead of W2 which was in my favor.

I am putting the ball in his court on this one and will see what he comes back with.
 
Posts: 3133 | Location: Peoria, AZ | Registered: November 07, 2002Reply With QuoteReport This Post
Too old to run,
too mean to quit!
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I think I might start looking for another tax guy


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Posts: 22380 | Location: Virginia | Registered: December 16, 2001Reply With QuoteReport This Post
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Those are much worse than a couple of minor errors. You definitely need to find a new tax preparer.
 
Posts: 1214 | Location: Central TX | Registered: June 17, 2003Reply With QuoteReport This Post
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quote:
Originally posted by iron chef:
Those are much worse than a couple of minor errors. You definitely need to find a new tax preparer.


For sure but before I let him go I expect him to help dig me out of this mistake however the hell that will happen
 
Posts: 3133 | Location: Peoria, AZ | Registered: November 07, 2002Reply With QuoteReport This Post
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quote:
For sure but before I let him go I expect him to help dig me out of this mistake however the hell that will happen


I would expect him to pay any added expense for you. Most CPAs have insurance for this stuff. I had to change an accountant three times in the last 40 years and it can present some problems. Be nice and see if you can determine why the error was made.

The issue should be easy to resolve with the IRS.
 
Posts: 2514 | Location: MS GULF COAST | Registered: January 02, 2015Reply With QuoteReport This Post
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Ultimately the IRS says you are responsible for the info on the tax return....

But if the accountant made a mistake, shit happens, he should make good on it by paying any interest/penalty.

If he has made multiple mistakes then maybe it is time to move on, but like I said, shit happens.

How much money do you make where over $30k is added to your income and you don't notice? That, my friend is the dream! Razz


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I own a bunch of Sigs with Beavertails...
 
Posts: 866 | Location: NE Ohio | Registered: November 09, 2012Reply With QuoteReport This Post
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quote:
How much money do you make where over $30k is added to your income and you don't notice?


Shhhhh. It is not polite to ask about money and where it comes from. Some folks do not count it, weighing the bills is faster. LOL
 
Posts: 2514 | Location: MS GULF COAST | Registered: January 02, 2015Reply With QuoteReport This Post
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quote:
Originally posted by ZSMICHAEL:
quote:
How much money do you make where over $30k is added to your income and you don't notice?


Shhhhh. It is not polite to ask about money and where it comes from. Some folks do not count it, weighing the bills is faster. LOL


Lol, not enough!

The long and the short is on my business miles he added an extra number which basically would have meant I would have at to drive 67K miles for business in the year as opposed to the 14000 I did drive.
 
Posts: 3133 | Location: Peoria, AZ | Registered: November 07, 2002Reply With QuoteReport This Post
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quote:
I get that mistakes happen but this is 2nd one in 2 years. Last year he reported my wifes income as 1099 instead of W2 which was in my favor.


You mean W2 wages instead of 1099 don't you? Also 63.536 miles reported? All reporting is in whole numbers, do you mean calculation was wrong? 6353 business miles or 14000? It is best to let a CPA handle the letter.


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Posts: 3190 | Location: Nashville, Tennessee | Registered: December 16, 2004Reply With QuoteReport This Post
Just because you can,
doesn't mean you should
posted Hide Post
quote:
Originally posted by Anush:
quote:
I get that mistakes happen but this is 2nd one in 2 years. Last year he reported my wifes income as 1099 instead of W2 which was in my favor.


You mean W2 wages instead of 1099 don't you? Also 63.536 miles reported? All reporting is in whole numbers, do you mean calculation was wrong? 6353 business miles or 14000? It is best to let a CPA handle the letter.


I think he made a mistake putting a dot instead of a comma.
 
Posts: 3485 | Location: North GA | Registered: August 22, 2002Reply With QuoteReport This Post
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quote:
Originally posted by 220-9er:
quote:
Originally posted by Anush:
quote:
I get that mistakes happen but this is 2nd one in 2 years. Last year he reported my wifes income as 1099 instead of W2 which was in my favor.


You mean W2 wages instead of 1099 don't you? Also 63.536 miles reported? All reporting is in whole numbers, do you mean calculation was wrong? 6353 business miles or 14000? It is best to let a CPA handle the letter.


I think he made a mistake putting a dot instead of a comma.


Yes, that was my bad typing.....he somehow put in a deduction of 63,536 miles for a huge deduction.

What baffles me id I have used this guy for 6 years and my info is pretty consistent. I did the match on what he entered and for me to drive that many miles in a year is insane, almost impossible without being some kind of professional driver.
 
Posts: 3133 | Location: Peoria, AZ | Registered: November 07, 2002Reply With QuoteReport This Post
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The notice will indicate whether penalties were assessed. You (or your accountant) can request a waiver for the penalty explaining it was a typo.

I mostly do business taxes. For the few individual returns I prepare I give the client a 2 year comparison. Things like this jump out on the 2 year comparison schedule. Many/most software programs can generate this comparative data.

Hope it gets worked out with a minimum of effort on your part. My email is in my profile if you want/need more info.




Speak softly and carry a big stick loaded Sig
 
Posts: 4062 | Location: Raleigh, North Carolina | Registered: September 27, 2004Reply With QuoteReport This Post
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quote:
Originally posted by SR:
The notice will indicate whether penalties were assessed. You (or your accountant) can request a waiver for the penalty explaining it was a typo.

I mostly do business taxes. For the few individual returns I prepare I give the client a 2 year comparison. Things like this jump out on the 2 year comparison schedule. Many/most software programs can generate this comparative data.

Hope it gets worked out with a minimum of effort on your part. My email is in my profile if you want/need more info.


Thanks...I am waiting to see what my soon to be former tax guy says as I would like him to handle this for me.

I know I am going to owe some money and will most likely need to set up a payment plan which sucks but it is what it is.

I used this guy based on a referral from my old guy who retired and it would appear at a glance that he has made errors on 2 of the 4 years I have used him (and I hope that is all). I feel bad because he is an older guy and really nice but I do not need this stress and aggravation, nor do i need the IRS crawling up my ass every year
 
Posts: 3133 | Location: Peoria, AZ | Registered: November 07, 2002Reply With QuoteReport This Post
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Update!

Just spoke to tax guy who was very apologetic and fully admitted fault...

Looks like I will owe about 7000.00 and he is amending my return. He is eating the fees and penalties but I am stuck with a huge tax bill at a really bad time.

He is also refunding every dime I ever spent with him.
 
Posts: 3133 | Location: Peoria, AZ | Registered: November 07, 2002Reply With QuoteReport This Post
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Picture of Sailor1911
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quote:
Originally posted by Kevmo:
Update!

Just spoke to tax guy who was very apologetic and fully admitted fault...

Looks like I will owe about 7000.00 and he is amending my return. He is eating the fees and penalties but I am stuck with a huge tax bill at a really bad time.

He is also refunding every dime I ever spent with him.


Well, that's commendable of him IMO.


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“If in winning a race, you lose the respect of your fellow competitors, then you have won nothing” - Paul Elvstrom "The Great Dane" 1928 - 2016
 
Posts: 2178 | Location: Wichita, Kansas | Registered: March 27, 2011Reply With QuoteReport This Post
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Our tax guy retired and recommended some numb nuts that screwed our taxes up two years in a row.

We finally found a guy who can add and subtract.
 
Posts: 5252 | Registered: April 02, 2011Reply With QuoteReport This Post
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Sadly, I got notice last night that my original and awesome accountant is in hospice and not expected to last long so I am going to see him to say my goodbyes...Now the hard part, he was the one that sent me to this jackhole so I am not sure if I should hug him or smother him!
 
Posts: 3133 | Location: Peoria, AZ | Registered: November 07, 2002Reply With QuoteReport This Post
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I had my taxes done at H&R Block...........one time, only.

I began using Turbo Tax after that H&R Block fuck up.


*******
"Avoid the rush. Procrastinate now".
 
Posts: 5100 | Location: Arizona | Registered: August 17, 2008Reply With QuoteReport This Post
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