What is the name of your state? Michigan
I recently got audited for unpaid city taxes dating back to 2001. I was told by my accountant back in 2001 that my residence was just outside the border of the city zone. As I work outside the city, I was not obligated to pay city taxes (do not live/work in city). A couple years ago I noticed an updated zoning map and that my residence was now just inside the border. I brought this to the attention of my accountant and he said that he was unsure when this changed (if it had changed at all) and that if I filed a city form then it would bring up a red flag and make cause for an audit. He stated we could either file then or wait and hope not to get audited. Well, I chose to wait, and now I get audited. I submitted the audit letter to my accountant, then received a packet in the mail with the 1040 forms dating back to 2001 filled out with the missing city tax information. Taxes totalled over $3000. Not happy! To top it all off, he sent me a bill for $150 to prepare it. My question is, is there anything I can do legally to somewhat hold my accountant accountable for these misfilings? As my wife, I, and our 6 kids are struggling to get by as it is, this was not the best timing in the world to rececive this type of letter. Any help would be appreciated!!!
I recently got audited for unpaid city taxes dating back to 2001. I was told by my accountant back in 2001 that my residence was just outside the border of the city zone. As I work outside the city, I was not obligated to pay city taxes (do not live/work in city). A couple years ago I noticed an updated zoning map and that my residence was now just inside the border. I brought this to the attention of my accountant and he said that he was unsure when this changed (if it had changed at all) and that if I filed a city form then it would bring up a red flag and make cause for an audit. He stated we could either file then or wait and hope not to get audited. Well, I chose to wait, and now I get audited. I submitted the audit letter to my accountant, then received a packet in the mail with the 1040 forms dating back to 2001 filled out with the missing city tax information. Taxes totalled over $3000. Not happy! To top it all off, he sent me a bill for $150 to prepare it. My question is, is there anything I can do legally to somewhat hold my accountant accountable for these misfilings? As my wife, I, and our 6 kids are struggling to get by as it is, this was not the best timing in the world to rececive this type of letter. Any help would be appreciated!!!