Can I sue a tax consulting firm that I hired to represent me at an IRS exam for which they failed to adequately represent me

what are my rights in this case?: what are my rights in a case in which do i have a right to sue? i signed a contract with a tax consultant firm to represent me at an irs exam. they failed to represent me thus leading to me having to cancel service with them and represent myself. they charged my credit card a total of $4800 but did no service. i have proof that they were not there at the exams - it took 3 exams but i was finally able to get out of the mess in which they only mad matters worse. now they will not return my phone calls, emails, or even my certified letter asking to be refunded my money. do i have a right to sue them for breach of contract? - Is this your question? Add additional information
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Answers (4)

Lu Ann Trevino

Lu Ann Trevino

Contributor Level 8
If you hired one of those tax consultants who advertise on TV, you may not have much of an opportunity to recover your money. Look at the back of the contract, you will probably find an arbitration clause saying you can not sue and that your maximum legal recovery will be limited to the amount of the fee and that you are responsible for all the arbitration fees.

However, if you used a credit card (not a debit card), you could dispute the charge and possibly have it reversed. This can work if the charge is less than 60 days old.
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Ronald David Coleman

Ronald David Coleman

Contributor Level 4
I have a feeling I know which company you're talking about! There are many charlatans in this field. Unfortunately, your right to sue them is almost certainly limited by the agreement you signed with them, which probably requires you to either arbitrate any dispute or to sue them where they are located, not where you are. On the other hand, if this was a recent charge on your credit card, you should at least initiate the issuer's disputed charge procedure.
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Matthew J. Mcbride

Matthew J. Mcbride

Contributor Level 4
Ronald, the name of one organization sprung into my mind when I read this as well. The sad thing is, I have had clients say to me, "but this guy from [national company] says they can do things you have said can't be done". To a desperate person in tax trouble, it might seem like a good idea to buy into the promises, but...read the original question here.
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James L Lindon Ph.D.

James L Lindon Ph.D.

Contributor Level 4
Probably, yes. If there is a written contract, and they breached it and the breached caused you damages, you have a cause of action. There may also be professional liability. Some states strictly limit the amount of time you have to initate such a lawsuit, so you should contact your lawyer right away.
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