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is Tax rep responsible to pay IRS if he filed you wrong and you get audit?

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somerlee

Junior Member
NYC.

I file a schedule C as a performer.

Please help. Does anyone know if my CPA is responsible for any money owed to the IRS for making errors filing? I am being audited and come to find I may owe about $1000. When my CPA filed my taxes he did not advise me correctly and he claimed on my behalf , 100% of certain business deductions (cell phone, cable, etc) and now I have come to find that the auditor is saying you cannot claim the full 100%, and I have to pay the difference.

Is the CPA legally responsible?
 
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Snipes5

Senior Member
Do you have a tax professional assisting you at the audit?

Some of those things can be fully deducted, it really depends on the circumstances and usage.

If the CPA has taken an unrealistic position he could be fined, but you are the one who is responsible for substantiating your expenses.

Have you contacted the CPA in question and given him the opportunity to assist you at the audit?

Snipes
 

somerlee

Junior Member
Thanks. It is the same CPA that is assisting with the Audit. I have backed up to the penny all of my expenses and deductions and substantiated everything. The CPA is also requesting money for his services in the audit assist. The auditor is even asking for SSC#s of some of the professionals I paid money to (which I deducted) for classes and teachings, trying every which way to find some reason for me to owe money.

If all of my documentation is there, shouldnt the CPA pay the penalties and fines to the IRS and I am free and clear?

I am not sure if I signed any agreement in which the tax preparer would owe for any mistakes, but I shouldnt be held responsible for something as blatant as filing the wrong deductions when not legally allowed when the CPA did it all.

Thank you!
 
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dallas702

Senior Member
Snipes is right. The IRS still puts the final burdon on you. However, your contract with the CPA might have an agreement to pay up to a certain amount, refund your fees, or represent you at the audit. I hope you have a written agreement with the CPA.
 

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