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Posted over 3 years ago.

Christopher,

Sorry, in reading your answer (and re-reading my question), realized I forgot to describe the "damages" in more detail.

As a result of the returns not being filed properly, my mortgage lender was unable to retrieve a copy of tax transcripts from the IRS, and suspended approval of my loan. Seller is only willing to extend escrow if I pay carrying costs of about $2,500/month, and the timeframe to process paper returns can run 6-8 weeks or longer. Lender's statement to me was very explicit and in writing: we cannot approve this loan because your tax transcripts are unavailable. The CPA sent the bank a statement acknowledging that the returns were initially rejected because he or his firm made a mistake in filing them.

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Asker
Posted over 3 years ago.

Christopher,

Sorry, in reading your answer (and re-reading my question), realized I forgot to describe the "damages" in more detail.

As a result of the returns not being filed properly, my mortgage lender was unable to retrieve a copy of tax transcripts from the IRS, and suspended approval of my loan. Seller is only willing to extend escrow if I pay carrying costs of about $2,500/month, and the timeframe to process paper returns can run 6-8 weeks or longer. Lender's statement to me was very explicit and in writing: we cannot approve this loan because your tax transcripts are unavailable. The CPA sent the bank a statement acknowledging that the returns were initially rejected because he or his firm made a mistake in filing them.

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Asker
Posted over 3 years ago.

Christopher,

Sorry, in reading your answer (and re-reading my question), realized I forgot to describe the "damages" in more detail.

As a result of the returns not being filed properly, my mortgage lender was unable to retrieve a copy of tax transcripts from the IRS, and suspended approval of my loan. Seller is only willing to extend escrow if I pay carrying costs of about $2,500/month, and the timeframe to process paper returns can run 6-8 weeks or longer. Lender's statement to me was very explicit and in writing: we cannot approve this loan because your tax transcripts are unavailable. The CPA sent the bank a statement acknowledging that the returns were initially rejected because he or his firm made a mistake in filing them.

No photo
Asker
Posted over 3 years ago.

Christopher,

Sorry, in reading your answer (and re-reading my question), realized I forgot to describe the "damages" in more detail.

As a result of the returns not being filed properly, my mortgage lender was unable to retrieve a copy of tax transcripts from the IRS, and suspended approval of my loan. Seller is only willing to extend escrow if I pay carrying costs of about $2,500/month, and the timeframe to process paper returns can run 6-8 weeks or longer. Lender's statement to me was very explicit and in writing: we cannot approve this loan because your tax transcripts are unavailable. The CPA sent the bank a statement acknowledging that the returns were initially rejected because he or his firm made a mistake in filing them.

No photo
Asker
Posted over 3 years ago.

Christopher,

Sorry, in reading your answer (and re-reading my question), realized I forgot to describe the "damages" in more detail.

As a result of the returns not being filed properly, my mortgage lender was unable to retrieve a copy of tax transcripts from the IRS, and suspended approval of my loan. Seller is only willing to extend escrow if I pay carrying costs of about $2,500/month, and the timeframe to process paper returns can run 6-8 weeks or longer. Lender's statement to me was very explicit and in writing: we cannot approve this loan because your tax transcripts are unavailable. The CPA sent the bank a statement acknowledging that the returns were initially rejected because he or his firm made a mistake in filing them.

Christopher Michael Larson
Christopher Michael Larson, Tax Lawyer - Seattle, WA
Posted over 3 years ago.

Yes. These are very real damages that one could say were caused by the preparer. That is the key. Your situation is very real, but many people think it will get them out of paying taxes, like a "mistake bonus." But that is clearly not your case.

Christopher Larson
www.insightlawfirm.com
www.insightlawfirm.wordpress.com