Supporting a Client Before the IRS in the Wake of a Negligent Accountant
We were approached by a businessman whose accountant, unbeknownst to him, had failed to file his 2016 Federal income tax return.
Following our recommendation, a new accountant was engaged at the beginning of 2018 to prepare the missing return. After the return was filed, the IRS assessed $450,000 in penalties for the failure to timely file the 2016 return and for the failure to timely pay the tax due. Individuals generally cannot use their accountants as an excuse for not filing their tax returns on a timely basis. Knowing this, the businessman reached out to us for help considering his options and, ultimately, for developing a strategy.
Our attorneys, with deep tax experience, reviewed his case and presented to the IRS a timeline of events which demonstrated that continual efforts were made to prepare the tax return in question after the new accountant was engaged. The IRS considered and accepted these facts and abated, in full, the failure to file penalty which approximated $300,000.