Tax Preparer Errors

My tax preparer has made two errors in my taxes which have been pointed out to me in a recent audit. What is my recourse with my preparer?

If the preparer was negligent and the negligence caused the errors, then you could sue the preparer for any loss you suffered because of the errors. However, there are many errors made in returns now by competent tax preparers, so a few errors do not necessarily mean the preparer was negligent.

Another thing to consider is whether the errors really cost you anything. If the errors resulted in your not paying as much tax as you should have, then you could probably show that your loss amounted to the interest you had to pay the IRS. However, you did have the use of the money during that time, so your loss would not be much. If the errors caused you to pay more tax than you should have, the IRS has refunded that to you and your loss would probably be the interest you would have earned on the money.