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Tax filing delays

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Brett Schubert

Guest
indiana, i'am looking for previous cases were a tax payer's returns were delayed due to poor advise from thier accountant. i am trying to get penalties & interest removed for delayed returns due to poor advise from my cpa.
 


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loku

Guest
You can not escape the late filing and payment penalty because of relying on a CPA. The following quote from Kudo, Shigenori, et ux., et al. v Comm (April 6, 2001) 87 AFTR2d Par. 2001-793 explains the law

Appellants defend against the assessment of penalties by arguing good faith reliance on the accountant who prepared their returns. Such reliance is not a defense to a late payment penalty. See United States v. Boyle, 469 U.S. 241, 252 (1985) ("failure to make a timely filing of a tax return is not excused by the taxpayer's reliance on an agent"). Good faith reliance on a tax preparer is justified with respect to the other penalties, but only if the taxpayer has provided the tax preparer with all necessary information. See Pessin v. Comm'r, 59 T.C. 473, 489 (1972) ("the ultimate responsibility for a correct return lies with the taxpayer who must furnish the necessary information to his agent who prepared his return").


However, you could sue the CPA for negligent mal practice in Small Claims court.
 

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