The case of the self filing taxes?

What is the name of your state? ca

Can a cpa be held liable for filing your taxes without your signiture or approval?

Isn't that a federal crime?

If anyone can answer my question it would be appreciated?

[Snipes5]

Yes. Sounds to me like there has to be more to this story. In our office we don't file anything until it's signed and paid for.

Taxes can't be legally filed without proper signatures of the taxpayer(s).

Snipes

Thanks snipes,

Yes much more to the story, recently we had our 2002 processed through this particular cpa, at which time he knew we were doing a late filing.

Cpa suggested we wait until irs approved and accepted our 2002 taxes before filing our 2003 taxes. Cpa stated we would probably receive money back and could due our filing by e-file, which would assist balances owed. We followed his advice paid for 2002 taxes to be processed and waited, when receiving the approval the amount owed for 2002 it had increases by about $900.00 on federal and state, so I made installment arrangements.

I had not spoken to cpa or staff since visiting office for inital 2002 filing and consultation.

Soon after, I received a notice stating our 2003 taxes had been filed and we owed $3,400 to one and $1,850.00 to another. Stating we defaulted on our current arranangement and now all taxes were due in full (demand for payment letter). I telephoned the irs who notified me the taxes had been processed by e-file (by me).

I started to suggest that I had not filed taxes yet, when I realized that the cpa had suggested the e-file. I suggested I would speak to the cpa and get back to irs, however irs notified me that they wanted payment in 30 days
of $5,200.00. I explained we could not pay the amount in full, so they did agree to installments, however It would impose a lien on our credit.

help?

[abezon]

1. Go see the CPA. Find out what happened. How did your return go from a refund to a balance due? And how did it get filed? Sounds like a computer glitch to me but your CPA should deal with it.

2. WRITE the IRS & tell them you have signed no tax return for 2003 & have not given anyone else the power to file and that you do not agree with the 2003 return numbers they claim they have.

3. Don't do installment agreements again. The slightest deviation results in the IRS demanding the entire amount, as you found out. Instead, just mail them money every time they mail you a letter.

4. If necessary, you can always amend the 2003 taxes so that less is owed.

Great advice abezon,

In response to question number 1:

I telephoned the cpa and to my amazement the discussion ended in tears.

The cpa upon receiving my call was rude and short with me the conversation went as follows:

me, "Hi ***** how are you doing"
cpa, "Fine"

me, "I have a problem"
cpa, "What do you want me to do for you!"

me, "Well someone filed my taxes without my consent?"
cpa,"DON'T YOU SAY, ARE YOU SAYING I DID SOMETHING ILLEGAL!"

me, "I am asking why my taxes were filed?"
cpa, "YOU WERE SUPPOSED TO PAY THE TAXES OWED!"

me, "I would have if the amounted estimated would have been the same as what you quoted, but the monies owed were more and we could'nt pay in full"
cpa, "WELL IF YOU WOULD PAY YOUR TAXES ON TIME YOU WOULD'NT BE IN THIS SITUATION!"

me, "We are paying our taxes but, if we were going to owe taxes again why were'nt we notified so we could make the decision as to how we wanted to handle them. Besides no one from your office even notified us the taxes were being done and filed"
cpa, "DON'T EVEN OPEN YOUR MOUTH AND SAY ANOTHER WORD, I ALREADY ASKED YOU WHAT YOU WANT ME TOO DOO FOR YOUU!"

me, "**** I have already made arrangements but, now we are incurring a lien on our credit"
cpa, "STOP RIGHT THERE IF YOU IMPLYING I DID SOMETHING ILLEGAL I WILL SEE YOU IN COURT WITH MY ATTORNEY!"

me, "**** I did'nt even tell irs that I had not filed taxes"
cpa, "LET'S END THIS CONVERSATION RIGHT NOW BEFORE IT GETS UGLY AND YOU CALL ME TOMORROW!"

I know your probably thinking I responded in a yelling match with this person but I am currently in a delicate way with a second child and tried not to upset my self, but once the conversation ended I broke down and bawled like a baby in disbelief.

[abezon]

Well, I'd say the subtext to the CPA's side of the conversation is "Oh ****! I just committed malpractice AND a felony & if the state licensing board finds out they might discipline me & the IRS might not let me prepare taxes anymore and I'll lose my house and my malpractice insurance premiums are going to go up AGAIN!!! Maybe if I attack she won't file complaints!"

That said, I repeat number 2 -- contact the IRS and disavow the tax return that was e-filed.

Also,
5. Run-don't-walk to a different tax preparer and have your last year's tax return looked over. A second opinion is in order.

Abezon,
Your e-mail is a breathe of fresh air and confirms my standing.

I have a couple of other questions maybe you can answer?

1. I never paid to have the taxes processed and I think he will ask me to pay for the processed tax forms?

2. I am afraid to go to his office due to his degrading, agressive mannerisms how can I handle this?

3. Do I have any illegal recourse?

Your a gem

[abezon]

1. Whether you have to pay depends on what kind of contract you have with him. I doubt he'll push it.

2. Send someone else with written authorization to pick up your original documents. You won't get a copy of the return without paying for it though. You can get a copy of what got filed at the IRS by requesting a transcript (free) or an actual copy ($30 or so).

3. All kinds of illegal recourse -- you could burn down his office, key his car, shoot him, hire Guido to beat him up, infect his computers with a worm virus, etc. For LEGAL recourse, you can report him to the state CPA licensing board. You won't be able to get much else -- if the taxes were done correctly, you are no worse off than before he filed the taxes & you haven't even paid for them yet!

Thanks Abezon,

Got the message. Already disavowed the taxes with state, but have not been notified by federal will take appropriate action when the time is right.

I just wanted a couple of thoughts on tax attorneys that negotiate and settle your tax balances on pennies for the dollar? (or so they claim)

Your response has been well taken and the information makes great sense, can't thank you enough.

[abezon]

Generally a scam to milk you for fees. Unless you owe a year's income, don't expect to get much of an offer in compromise. You can do an OIC yourself. I'm sure there are self-help legal books to walk you through the process at your library or bookstore.

What do I do if IRS refuses to disavow my 2003 taxes and demands payment? help?

[abezon]

The IRS should put things back on hold. However, you should file a complaint with the IRS about the CPA's handling of electronic filings & reitterate that you did not sign anything, & have not been allowed to review the return the CPA filed, so you can't tell how inaccurate the numbers are. Therefore, you can neither confirm nor deny whether you are delinquent in your 2003 taxes or not. Thus, you have not violated the installment agreement.

Great advice abezon,

Before I contact them again here is the whole situation as follows:

We currently owe taxes for 2001 & 2002 and I in good faith made payment arrangements for the 2 years pending.

We did file 2002 late, because I usually wait until I receive a demand for tax filing letter, which in my small mind buys me time. So, when I was put in contact with this idiot! I was late in filing and waited until I received the acceptance of filing letter from IRS before moving forward. Which we were owing once again. But when receiving the re-adjusted taxes was informed we owed more than the cpa estimated. (Were talking from $1800 - $2600)

Unfortuately, when I contacted IRS and explained to them in detail that I had not requested the taxes be processed, the response was. "You gave the paperwork to the cpa, and you were already late in filing 2002 so, he did what he was legally suppose to do. My response was, "I never requested that the taxes be filed for 2003 and never approved or reviewed them nor did I pay for his service to process them, so how can you process a claim without my consent knowing I am notifying you that I have never seen the documents that illegal.

The IRS Rep. said regardless you forfeited your installment agreement when you owed for 2002, so whether your cpa filed your 2003 with or without your consent is irrelevant.

I informed her that we could not afford to pay the taxes in full that my husband is head of household support me and our 2 children, plus paying a spousal support obligation, she responded well you better start making phone calls and see who can loan you money or on the 12th of August we are going to levy wages.

Question? I know IRS is almost as powerful as god, but knowing the current situation why won't they have some leniency? We will be in financial ruin should a garnishment occur, we barley get by in the given situation. Can they garnish aware of the current situation, when I in good faith want to make some sort of installment arrangements?

We have made monthly consistent payments to our arrangements? I just feel screwed! help!

[Snipes5]

1) File your taxes on time in the future. Waiting for an IRS demand letter is foolish, if not outright idiotic.

2) Never engage in another installment agreement with them. Just send money every time they ask for it. Unfortunately, you are stuck for the agreements you already signed.

3) As for the rest of it, don't call them. Go see a tax professional who can help you. At a minimum, go to an IRS office and talk to them in person.

Snipes