Dear Amy: My boyfriend’s dad is a CPA, with decades of experience. A few years ago he offered to do my taxes, due to the sudden complexity because of an inheritance – and I was using cheap software for very basic returns.
Since taking over my yearly filing he has consistently made mistakes that have cost me quite a bit of money. He left off a major account distribution one year; this should have been easily caught by him.
When I discussed the mistake with him, he never acknowledged it was due to his error, nor did he offer to pay the interest I owed.
This year, I decided to start filing my taxes again on my own. As a result, I found out he had given me incorrect advice for all of these years regarding paying my estimated taxes.
He told me it was a suggestion to pay the estimated taxes, but it’s actually required! Again, the software would have told him this and would have also given him the penalty amount I owed.
Not once did he mention the penalty I owed and it’s not on any of the returns he gave me, after filing.
I am upset and feel that he should reimburse me for these mistakes; he offered to do my taxes, he gave me incorrect advice and he never mentioned the penalties I was charged.
In fact, when I contacted him to tell him I didn’t realize I was being charged penalties all these years, I heard nothing back.
My boyfriend believes I should not ask to be reimbursed because although his dad offered to do my taxes, he never charged me for the services rendered.
I disagree. What is your opinion?
– Taxed
Dear Taxed: You get what you pay for.
In my opinion, your boyfriend’s father does not owe you for the mistakes he made.
These tax returns are filed under your name, with information you supply, and you should review the returns and do your due diligence regarding taxes and penalties before signing and submitting your return.
The IRS requirements on estimated taxes are clear and readily available through a simple internet search.
Penalties should show up on a line on your return, but when reviewing your return, you might have looked only at the “bottom line.”
If you had hired this CPA and signed a contract, he would have also signed your returns, and the IRS could penalize him for making avoidable mistakes – or you could take him to court – but you are still on the hook.
You can email Amy Dickinson at askamy@amydickinson.com or send a letter to Ask Amy, P.O. Box 194, Freeville, NY 13068.
