Tax preparer on the hook for the results of tax audits?

On Behalf of | Nov 10, 2017 | Tax Audits

Many Connecticut residents turn to tax preparers to help them with their tax filings. As complicated as the tax code is, this can be a smart move. However, what if you, as a professional tax preparer, make mistakes? You could be on the hook for the results of your clients’ tax audits.

According to current tax laws, if you make a mistake, you could be subject to significant penalties for your error. It does not matter if the tax return in question is someone’s personal taxes, a business return or has to deal with an estate. In order for you to be held accountable, however, it is necessary for the IRS to prove that your error was the result of a willful attempt to lessen your client’s tax liability or due to disregarding tax regulations.

Wondering how bad the penalty really is? Every case is different, but fines can be pretty hefty. If anything criminal in nature is suspected, jail time may also be possible, if the case is taken to criminal court and a conviction is obtained by prosecuting attorneys. To learn more about the consequences tax preparers may face for willful tax return mistakes, please visit our firm’s website.

Tax season is stressful; there is no doubt about it. Being a tax preparer in Connecticut or elsewhere is not an easy job. If you find yourself on the hook for one or more clients’ tax audits, you can take steps to protect yourself. An experienced tax law attorney can help get you through the situation, all while working to minimize any damage it may do to you personally and professionally.