Can I seek damages against my tax preparer for filing my taxes incorrectly or get a refund of the amount paid for tax prep?: I hired a tax person to prepare my taxes for the 2007 tax year while I was living overseas in Asia. He's based here in the US. After having my taxes done by this person in person for about 6 years they decided to put off doing my overseas return until the last minute by filing it right before the deadline even though he add all docs 1.5 months prior. My return was short by $500. He filed an amended return without my consent with the State and the new return showed that I owed the state $158. It took me several months to figure out that he filed an incorrect amended return. I went to an IRS office multiple times and spent hours on the phone with them trying to figure out what this guy did wrong. I've since filed an amended return and will be getting the $500 I didn't get in 2007. Can I sue?
Dennis’s answer: One other thing to think about. If while living in Asia you had a bank account, or brokerage account with more than $10,000 in it any time you are required to file a Form TD-F 90-22.1 with the IRS, and check a box on your tax return indicating you had the account. The penalties for failure to do so can be quite costly.
I am a US citizen, worked and had bank accounts in the foreign country where I lived 6 yrs. I did not know I had to file taxes:
I did not declare the bank accts either out of ignorance. I enrolled in the voluntary disclosure last year out of good faith. I am complying with the IRS with all the docs. requested. What are the chances of a 'favorable' outcome for myself.
Thank you
Dennis’s answer:
It depends what you mean by a "favorable outcome." If handled properly you can expect that you will pay the tax, plus interest, plus a 20% penalty on the tax, and 20% of the highest account balance. In some cases it may be possible to do better.
If you had more than a $100k in the outcome you should consult a tax attorney who is currently handling at least a few of these types of cases.
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The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Dennis Brager is a Tax Attorney, and a State Bar Certified Tax Specialist licensed to practice law only in the State of California. Responses are based solely on California law and Federal Tax Law unless stated otherwise. Any federal tax advice contained in this communication is not intended, nor written to be used, and may not be used, for the purpose of (i) avoiding penalties that may be imposed under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.
My husband owes money to the IRS and would like to know if my inheirtance will be taken because of this( inheirtance from parent:
My husband owes money to the IRS and this has been taken out of my social sercurity check for over a yr. this is money he owed before we were married, now my parents feel that once they pass an inheirtance along to me the IRS will take that also?
[email protected]
Dennis’s answer:
You really should speak with a tax controversy attorney in your state which seems to be Missouri. In general the IRS should not be taking money from either our inheritance or your social security; the only exception I can think of is if any normal creditor in Missouri would be entitled to go after you for your husband's premarital debts. For example in California, a creditor can take community property for both spouse's premarital debts.
That's why you need to speak with a tax attorney in your home state.
NOTE: If you find this response helpful, please click on the “thumbs up” button at the bottom.
The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Dennis Brager is a Tax Attorney, and a State Bar Certified Tax Specialist licensed to practice law only in the State of California. Responses are based solely on California law and Federal Tax Law unless stated otherwise. Any federal tax advice contained in this communication is not intended, nor written to be used, and may not be used, for the purpose of (i) avoiding penalties that may be imposed under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.