Sorry, I have to ask. Taxes.

[KarlS]

This concerns Michigan State taxes.

For the last six years I have been having my taxes prepared by a accounting office in the area, last Friday I decided to take H&R Block up on their offer to review my last three years of returns to see if they could of gotten me more money back. They found deductions the accounting firm didn't list BUT couldn't understand why they couldn't get me as much money back as the accounting firm did. After supervisors and I kept looking it over we discovered that the accountant was not listing all my income, inflating the rent I pay and falsifying tax codes. I turned in all my W2's and filled out everything on his worksheet truthfully.

I went straight to his office and talked to his head office girl. She pulled up their records and saw that what I turned in was not what HIS preparer put on my tax forms for the last SIX years. She said the owner and head CPA would not be in until Tuesday and she would talk it over with him and have him call me. When he didn't call me I called him and he was VERY nasty about it. This is how our conversation went.

 

He said: We do whatever we have to do to get you the largest refund we can

I said: Does that mean falsifying information to the State?

He said: If my preparer made a mistake then I'm sorry.

I said: A mistake, six years of cutting my income in half, inflating my rent and using incorrect tax codes is a mistake?

He said: You signed the taxes (forms) and if you don't like it you can pay us to file amendments and pay the money back. Then he hung up on me.

 

This is a but load of money for me with paying back the tax money with penalties and interest. My lawyer is being kind and checking with his CPA to see what could be done about it.

There is a whistle blower number that gets you off the hook for turning in cheating tax preparers but as far as I can find out it is for federal taxes only.

 

Anyone have any ideas or have went through this before?

 

Thanks....Karl

[Barrycuda]

This concerns Michigan State taxes.

For the last six years I have been having my taxes prepared by a accounting office in the area, last Friday I decided to take H&R Block up on their offer to review my last three years of returns to see if they could of gotten me more money back. They found deductions the accounting firm didn't list BUT couldn't understand why they couldn't get me as much money back as the accounting firm did. After supervisors and I kept looking it over we discovered that the accountant was not listing all my income, inflating the rent I pay and falsifying tax codes. I turned in all my W2's and filled out everything on his worksheet truthfully.

I went straight to his office and talked to his head office girl. She pulled up their records and saw that what I turned in was not what HIS preparer put on my tax forms for the last SIX years. She said the owner and head CPA would not be in until Tuesday and she would talk it over with him and have him call me. When he didn't call me I called him and he was VERY nasty about it. This is how our conversation went.

 

He said: We do whatever we have to do to get you the largest refund we can

I said: Does that mean falsifying information to the State?

He said: If my preparer made a mistake then I'm sorry.

I said: A mistake, six years of cutting my income in half, inflating my rent and using incorrect tax codes is a mistake?

He said: You signed the taxes (forms) and if you don't like it you can pay us to file amendments and pay the money back. Then he hung up on me.

 

This is a but load of money for me with paying back the tax money with penalties and interest. My lawyer is being kind and checking with his CPA to see what could be done about it.

There is a whistle blower number that gets you off the hook for turning in cheating tax preparers but as far as I can find out it is for federal taxes only.

 

Anyone have any ideas or have went through this before?

 

Thanks....Karl

 

 

Karl, that STINKS! Is there a way to find out if those cheaters have been on record doing the same to others? Is there some agency that monitors outfits like that. Thank goodness I haven't had those issues. Perhaps your attorney can recommend a tax attorney for a consultation. Good luck....

[Mel]

Did they falsify only your state taxes, or also your federal income tax? If the federal was incorrectly reported, you might want to consider starting there. Advice from a competent attorney is the best way to begin. Web site for the Secretary of State's office might help.

 

I lived in Michigan 2004-2008, used Turbo Tax. As I recall, that program automatically transferred the federal form information onto the state form. I think most preparers start with the federal and then do the state because the state form uses the adjusted gross income from the federal form.

 

Good luck!

Edited January 31, 2013 by Mel

[Marcarl]

I would think that the preparer would be responsible for the unpaid taxes,, after all, they made the errors, and they are the ones who cheated. I would get my lawyer involved.

[dacheedah]

ours will represent if you get audited and pay any fines as long as you disclose everything to him. You are on the hook for the taxes. My dad was audited and the accountant went toe to toe with the IRS and they ended up finally ruling in his favor about a year and a half later.

[RedRider]

I would think that the preparer would be responsible for the unpaid taxes,, after all, they made the errors, and they are the ones who cheated. I would get my lawyer involved.

 

That is not correct. The tax payer is liable for unpaid taxes. In a technical sense, the cheating tax preparer was correct. Since you signed it, you accepted it, it is your responsibility. Now, as to ethical.... not so much.

 

1) Take a look at any agreement/invoice from the tax preparer. There may be some language about them supporting you in a dispute with the IRS.

2) While I certainly wouldn't want a cheating accountant representing me, this language may make them liable to cover cost for an honest accountant/tax lawyer.

3) Get an honest accountant to go over the taxes and get them correct. This is the first thing that MUST be done. The government doesn't care about who is technically at fault. They just want their money.

4) Find a way to get the back taxes paid. The IRS does not have a sense of humor or fair play.

5) While the cheating tax preparers will not in any way be liable for your unpaid taxes, you may be able to make a case to have them cover any interest and penalties.

 

Good luck.

 

RR

[Black Owl]

You stated that the records which the tax preparer has are "different" from the tax forms you turned in. Are their records correct?

Just my thoughts here, but if so, I think you are going to have to prove that you did not alter the forms prior to submission.

[Yamamike]

I would think that the preparer would be responsible for the unpaid taxes,, after all, they made the errors, and they are the ones who cheated. I would get my lawyer involved.

Nope...you sign the return and are responsible for any unpaid taxes. Whomever prepared you taxes could be in very deep doodoo (possibly jail time!) but you are ultimately responsible! At least here in Canada.

[RedRider]

I just noticed you were from Flint. Don't worry about the taxes. They can't do anything to you. You are already in jail.

 

RR

[Venturous Randy]

I talked to a friend about her filing her taxes and she told me that she had taken hers to H&R and for what should have been able to be on an EZ1040, they charged her over $100. I told her we could have done it on line for free in just a few minutes. She is sick.

I used H&R one time and had to argue with the guy because he was more interested in adding more forms than he was getting me the most money back.

RandyA

[GAWildKat]

I talked to a friend about her filing her taxes and she told me that she had taken hers to H&R and for what should have been able to be on an EZ1040, they charged her over $100. I told her we could have done it on line for free in just a few minutes. She is sick.

I used H&R one time and had to argue with the guy because he was more interested in adding more forms than he was getting me the most money back.

RandyA

 

I consulted with H&R once, like Randy, I was quoted some astronomical price that was literally more than what Mike made in a week. I went online and filed my taxes for like $15 and save one time have done that every time since. You can also go to the local IRS office and have them prepare and file your taxes for free. I had to do that in 2010 for my 2009 taxes when my records and the IRS records were not the same, and they were able to sort out that I had gotten one of those voucher claims though I had not received the money or notice...

 

Like others have said, once you sign the documents, you are responsible for what is said. There's something to be said about being poor like me...less headaches at tax season...

[friesman]

this made me realize that I gotta read the fine print when I get my taxes done,....usually I just sign on the dotted line.

 

Thanks for posting your woes, it was a wakeup. I hope all goes well for you in this fiasco.

 

Brian

[ragtop69gs]

We prepare our own taxes with the help of Turbo Tax software , The first few years we did so we also used an accountant , just to compare bottom lines , both ways came out almost identical so we've been using turbotax ever since. The accountant charged us 200 or so, way more than the difference in what our return was.

[Carbon_One]

I'm another Turbo Taxer. Been using their programs since being retired. Like Ragtop I verified with an accountant a couple times when first using it. As he says next to nothing in different results and the money saved is in my pocket.

Good luck Karl on resolving your problem.

Larry

[KarlS]

H&R block helped me out by finding the inaccurate information the CPA was filling (electronically) on my tax forms. They didn't lie on federal just on state. I see my lawyer at 10:00am tomorrow and what I have been told so far that it appears that when the CPA's firm signed the tax forms as the preparer they obligated themselves to file all information to the state as I submitted to them. Yes I am responsible for back taxes and fees but they are at fault and I should be able to collect those illegally obtained refunds and interest and penlites from the accounts office. I do have proof that I supplied the proper tax information to the CPA's office and they falsified my returns without my knowledge. So it comes down to. do I call the state and let them know that my taxes was filed with inaccurate information and pay them back and them take the CPA firm to court to try and collect my losses, or wait and see if the state catches it. Thanks for everyone's input and I will see what happens tomorrow. Buy the way H&R block only charged me $18 to do my returns this year.

[XV1100SE]

I always find it better to call whoever you "offended" before they find out. Honest mistake (but not by the CPA) is best to be honest about.

 

One thing to consider... you probably are not the only one the CPA firm did this to. Consider this when talking to them and making demands. If you notify the State (and possibly Federal) tax office, they will ask you who prepared your taxes and might want to review every tax document prepared by them for ALL their clients. Imagine how much that will cost them and possibly loss of status (or jail time).

 

You could suggest to them that they need to compensate you for the aggravation (pay the back taxes depending on how much they are) or you'll put in a complaint to the State and Federal tax office, Better Business Bureau, make it very public that they falsified accounts.

 

Right now, you are in control and the CPA firm should be shaking in their boots about how you are going to proceed with this.

[Sailor]

I used to make out my own returns. It was simple back then but then they started changing the regulations and it became a mess. One year I got fed up and just mailed in the blank forms with all my paper work and a note which said " I give up, you figure it out". They did and even gave me a refund. Mind you...they audited me for the next five years.

[friesman]

I left my tax return blank once too when i sent it in, i got audited the very next year, and it cost me a lot of time, and my hair. Never again!

 

Brian

Edited February 1, 2013 by friesman

[FreezyRider]

Absolutely notify the State. Do not try to threaten the CPA firm to compensate you. You could end up in prison right next to your CPA if you do not report them to the state tax division.

Yes, you will owe the rightful taxes due according to the law. But I'd be willing to bet that, in turn for reporting the CPA firm, the state will cut you a break on the amount of time you have to pay them. Will probably give you a repayment plan if you ask.

 

The CPA firm will be assessed interest and fees. And probably be shut down if it is proven that this was intentional fraud involving more clients than just you.

 

Don't put it off.....call asap. Let the state handle the problem, and make them see that you are an honest taxpayer who was trying to follow the law.

 

Joe