accountant question

[Derek123]

Say I go to an accountant and have my taxes done, and later get audited. The IRS finds some mistakes and I owe some money in fees or penalties or whatever. Is my accountant responsible for this in any way if I filed based on his advice?

[Jeffage]

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The IRS finds some mistakes and I owe some money in fees or penalties or whatever. Is my accountant responsible for this in any way if I filed based on his advice?

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Generally no. You, as the taxpayer who signed the return, are responsible. There is a VERY high threshold for malpractice when it comes to accounting services. If the mistake is b/c you didn't provide enough or accurate info, you're boned also.

One thing that could help though is if it's clear you were following his advice and trying to pay in good faith, penalties could be waived by the IRS.

Disclaimer: I'm not an accountant or lawyer and this advice is worth exactly what you paid for it.

Jeff

[TorontoCFE]

Accountant's code of ethics and general practice is that if you end up being reassessed due to accountant's error, then the accountant will cover the difference.