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,

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.

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.

I think I might start looking for another tax guy

Those are much worse than a couple of minor errors. You definitely need to find a new tax preparer.

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

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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.

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!

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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

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.

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.

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.

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.

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.

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

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.

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.

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.

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!

I had my taxes done at H&R Block...........one time, only.

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