accountant missed reporting ......

What is the name of your state? NY
My accountant missed reporting several capital gains from 2005. He said he will fix it, but should he be held liable for the penalties I have to pay to the IRS.

It was clear mistake on his part because he worked off of the 1099-B forms given to me by the vanguard Group (mutual fund).

slimcan said:

What is the name of your state? NY
My accountant missed reporting several capital gains from 2005. He said he will fix it, but should he be held liable for the penalties I have to pay to the IRS.

It was clear mistake on his part because he worked off of the 1099-B forms given to me by the vanguard Group (mutual fund).

Click to expand...

If it is clearly the tax preparer's fault then, yes, they should absorb the penalties, if any. The tax is your responsibility. You can argue about interest. You had use of the money but then again, you may not have wanted to get a government loan.

irsos post is the policy in our office.

Many preparers have a guarantee that they will cover penalties & interst if they mess up your return. However, there is no legal requirement that they do so.

Legally, everything on that return is your responsibility, so you are supposed to reveiw the return carefully before signing it & catch these mistakes. Of course, if you could do that easily, you wouldn't have hired the accountant in the first place, but Congress does love to live in its own little dream world...