How to Hold an Accountant Liable for Not Filing My Tax Returns
There are various ways to hold your accountant liable for negligence. You could contact the state board of accountancy (in California, for example, at dca.ca.gov/cba) and file a formal complaint. Most state boards investigate the claims and assess penalties if negligence is found. Accountants can commit malpractice based on their actions or omissions (failure to act). Thus, you can file a legal claim against your accountant if your tax return was not filed.
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Instructions
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Gather paperwork that establishes your relationship, such as a contract or billing statements, plus all communications between you and the accountant. If applicable, describe the nature of the relationship, particularly if you recently identified other errors. Your goal is to show that the accountant had a duty to timely file the return.
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Demonstrate that the accountant breached or violated industry standards by acting carelessly. To establish negligence, you must show that the accountant's actions deviated from reasonable care, which refers to the usual customs of other accountants.
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Explain how you have been impacted by the accountant's failure to file a return. For example, describe and present proof of any IRS penalties that you incurred.
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Prove that the accountant's acts caused your injuries. You must show that the accountant is responsible for the breach (injuries would not arise if accountant had filed tax return).
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File a petition with the court. You can initiate legal proceedings on your own (known as pro se) or by hiring an attorney. Even if you want to file pro se, consult with an attorney to get an independent opinion about the case's merits.
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Tips & Warnings
Proximate or legal causation represents a major hurdle because you must prove that injuries stem from the accountant's negligence. If you can establish the basic elements of a malpractice case, you can survive summary judgment (when other side requests a dismissal or judgment on their behalf). You also might settle the case outside of court.
Make sure that you timely address all IRS concerns. The IRS maintains a Criminal Investigation Division to prosecute offenses including failure to file a tax return and willfully filing false documents.
