Most people would agree that the IRS tax code is confusing and complicated. The code itself is almost 6,900 pages. There are another 75,000 pages once you add in the U.S. Treasury’s official interpretation.
Therefore, it’s easy to make errors when completing your tax form
Tax services from an accountant
Filing your taxes is time-consuming and stressful. Even the most organized person can spend hours attempting to decipher the various regulations, decide which forms must be used (and in what order) and do the calculations.
As your financial life evolves, it may include investments, rental properties and various income streams. With those, the number of tax forms to file increases exponentially.
Accountants have the training and expertise to navigate these complexities. Furthermore, they stay up-to-date on the ever-changing tax laws to ensure you are in compliance. By having an accountant file your taxes, you are placing your trust in their ability to portray your financial picture for the past year accurately.
But what if they don’t? What if their inaccuracies trigger an IRS audit over issues such as:
- Claiming deductions you’re not eligible for
- Failing to report all income streams
- Filing under the wrong status or misreporting the number of dependents
- Missing required tax forms
- Missed deadlines
And if your accountant fails to adequately represent you during an audit, this could compound the situation. Unfortunately, you are responsible for any tax liability, and this negligence could cause you serious financial harm between accrued interest and penalties on late payments.
If you’ve spoken with your accountant and they’re unwilling to reimburse you for your expenses, you may want to consider pursuing a malpractice lawsuit.