Firm I hired to prepare my 2018 tax return chaged me 2x their normal rate (paid 950) because my return had alot of financial product trades (day trading). There was some back and forth on the preparation of the return where I found errors the CPA made. I specifically asked them to check that 1256 contracts were included properly. The CPA missed checking a box that otherwise would have resulted in $5k lower tax liability.
I called the CPA and she was very standoffish and did not seem to care.
Do I have any legal recourse here? Should the CPA have to write me a check in the tax liability I would otherwise not owe had the return been prepared correctly? Am I due any additional compensation due to the fact that I had to hire a second CPA to find the error? Any additional compensation due to penalties, fees, interest?
You can hire a new account to fix/amend your tax return. The cost for the new accountant would ultimately be what your damages are. Then, you could send a demand letter for that amount.
If the old accountant doesn't pay, you could tax them, probably, to small claims court if you wanted to spend your time that way.
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You can amend your tax return, and see if you have any damages from the error by the first accountant. Consider retaining a second accountant to explore that error and any others.
If need be, you can consider pursuing a claim against the first accountant.
You should consider preparing a letter to mail by certified mail, return receipt requested, to the first accountant to set out the facts and to request the relief that you want. Attach support to your letter such as the amended tax return. Make sure that the letter is professional and businesslike, as it may be evidence later.
If the damages are less than $10,000, consider filing suit in small claims court, using your letter as evidence.
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