What is the name of your state (only U.S. law)?New York
In 2006, my husband cashed in his 401K. We paid a huge tax on it. That year, our accountant filed our return incorrectly. While the Federal was correctly prepared, the State was NOT. He is retired, so she claimed our ENTIRE income for that year as EXEMPT. What she should have done ( I learned from the State) was to enter my husbands pension on that line, instead of the entire years income, because his pension is state tax exempt. The State sent us a letter one month ago, and stated the error in the taxes. We had to pay over 23,000 for the State income tax for that year. HOWEVER, an interest penalty accrued in the amount of almost 5,000.00. I asked the accountant to pay it, because had it not been for THEIR error, I would have not incurred this interest debt and would have paid the State at the proper time. My accountant says she is not legally responsible to pay, and offered a small amount to us...after admitting to the HUGE error. I think its an integrity issue. So, we are going to small claims court for that interest. Will I get the money from the accountant? What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?
In 2006, my husband cashed in his 401K. We paid a huge tax on it. That year, our accountant filed our return incorrectly. While the Federal was correctly prepared, the State was NOT. He is retired, so she claimed our ENTIRE income for that year as EXEMPT. What she should have done ( I learned from the State) was to enter my husbands pension on that line, instead of the entire years income, because his pension is state tax exempt. The State sent us a letter one month ago, and stated the error in the taxes. We had to pay over 23,000 for the State income tax for that year. HOWEVER, an interest penalty accrued in the amount of almost 5,000.00. I asked the accountant to pay it, because had it not been for THEIR error, I would have not incurred this interest debt and would have paid the State at the proper time. My accountant says she is not legally responsible to pay, and offered a small amount to us...after admitting to the HUGE error. I think its an integrity issue. So, we are going to small claims court for that interest. Will I get the money from the accountant? What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?