What Are Your Options if Your Virginia Tax Preparer Made a Mistake?

Lots of people rely on tax preparers, and in most cases, this is one of the best and easiest ways to avoid issues with the Internal Revenue Service (IRS). But, what if your tax preparer makes a mistake? Unfortunately, this issue is far more common than it should be, and each year numerous taxpayers find themselves dealing with the IRS because their tax preparers were not as knowledgeable or careful as they should have been. If you find yourself in this scenario, here are some important considerations from Virginia tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.

5 Important Considerations for Taxpayers Who Are Dealing with Tax Preparer Mistakes

Are you dealing with the IRS because your tax preparer made a mistake? If so, here are five key considerations to keep in mind:

1. You Could Be Liable for Interest and Penalties

Even if your tax return was inaccurate through no fault of your own, you could still be liable for interest and penalties. As a U.S. taxpayer, you are ultimately responsible for paying what you owe each year. While you may have a civil claim against your tax preparer (if your tax preparer is unwilling to compensate you voluntarily), you still generally need to pay what you owe the IRS.

2. Your Tax Preparer Could Be in Trouble with the IRS

Tax preparers who make mistakes can also find themselves dealing with the IRS. In the first week of June 2022 alone, IRS Criminal Investigation (IRS CI) announced three separate cases targeting tax preparers. The IRS warns taxpayers to be wary of unscrupulous and unqualified tax preparers, and it pursues enforcement cases against preparers suspected of defrauding taxpayers and/or the federal government.

3. Working with Your Tax Preparer May or May Not Be Your Best Option

Given that your tax preparer could be facing IRS scrutiny (and could also be liable to you for civil damages), working with your tax preparer to resolve the issue may or may not be your best option. In fact, at this stage, you should be cautious about having any communications with your preparer.

4. There Are Options for Reducing the Amount You Owe

If you owe more than you can afford to pay or you are facing liability for penalties and interest because your tax preparer made a mistake, you have options available. For example, depending on your individual circumstances, you may be able to submit an offer in compromise (OIC) or apply for penalty relief.

5. You Need to Make Informed Decisions Based on Sound Legal Advice

To choose your best option, you should discuss your situation with an experienced Virginia tax attorney. Dealing with the IRS can be dangerous, and your situation can go from bad to worse if you aren’t careful. An experienced attorney will be able to help you make informed decisions focused on minimizing your liability as much as possible.

Discuss Your Tax Situation with Virginia Tax Attorney Kevin E. Thorn

For more information about how to deal with a tax preparer mistake, contact us to schedule a confidential consultation with Virginia tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group. Give us a call at 703-752-3752, email ket@thornlawgroup.com or request an appointment online today.