non-ditzyblonde
Member
What is the name of your state? CA
I am one of three partners in a commercial rental property. Each year for the past 9 years, we've given our CPA a complete written statement of income and expenses in order to prepare our return.
This year, we decided to do the return ourselves. In doing so, we looked at past year's returns, and found what we thought were errors. Through anonymous calls to the IRS, we confirmed that the returns were indeed prepared incorrectly. Our expenses were inflated, reducing our tax liability.
We understand that should we be audited, we will be responsible for back taxes, interest and penalties. But does the CPA have any liability here? We always gave him accurate figures, and we have copies of everything we sent to him.
If we end up owing the IRS for this, do we have any recourse against the CPA? Are there any other issues I might be unaware of regarding this kind of situation?
Thank you very much for any help you might offer
Dennis
I am one of three partners in a commercial rental property. Each year for the past 9 years, we've given our CPA a complete written statement of income and expenses in order to prepare our return.
This year, we decided to do the return ourselves. In doing so, we looked at past year's returns, and found what we thought were errors. Through anonymous calls to the IRS, we confirmed that the returns were indeed prepared incorrectly. Our expenses were inflated, reducing our tax liability.
We understand that should we be audited, we will be responsible for back taxes, interest and penalties. But does the CPA have any liability here? We always gave him accurate figures, and we have copies of everything we sent to him.
If we end up owing the IRS for this, do we have any recourse against the CPA? Are there any other issues I might be unaware of regarding this kind of situation?
Thank you very much for any help you might offer
Dennis