tax liability

"ilaboo" wrote

I'll just say that your cryptic writing is going to be a real problem for you in any court.

I trust you wrote things in plain - commonly used - English.

That being said, if there is a problem with your returns, and if there is some liability on the part of the paid return preparer, the reputable ones will do whatever the can to reasonably make it correct. They won't however, be responsible for the actual tax due, but should cover any penalties - if you work with them to get the problem fixed in a timely manner. The software company bears no responsibility at all in this, and certainly none to you, as you aren't their client.

Get your facts straight. Talk to the former tax preparation firm about what they plan to do to make it right.

What kinds of errors? Are you positive these are not due to you giving incorrect information to your CPA? We can only prepare returns with the information provided. The typical transmittal letter says that the information provided has not been audited. I would contact your CPA and very diplomatically approach the situation, explaining what you have discovered.

cpa got all my income including interest from t.bills

hth peter

Well, what kinds of errors are you talking about?

Katie in San Diego

You need to explain further. If you are claiming he overstated income then you would be due a refund. However, US government interest is taxable for Federal, but not for state taxes.

it clear what kind of error occurred. State and municipal interest should not be taxed on the federal return unless AMT is affected by private activity bonds included in the interest received. Some of the interest may be subject to state tax. But if the CPA was not provided with sufficient information, he might have been unaware of the taxable portion. Maybe he should have questioned it.