Are CPA's liable for doing your taxes wrong?

[BGnight]

I was wondering if your honest w/ your CPA who works for a reputalble firm (not a chain firm) and they do something that isn't kosher w/ the IRS, do they take the heat if you get audited since they will be speaking for you? My CPA set up my schedule C and I'm already making estimated payments on my last years gross income yet it wasn't "approved" by the IRS. And she also netted my last years poker winnings (she told me she consulted w/ her partners and that's what they decided was best)
Just wondering on the legalities. I also showed her my Neteller balances I printed up and she didn't mention anything about a foreign account. Is this something she should have mentioned to me?

[DING-DONG YO]

Did she make you sign an engagement letter? Read it.

Generally, you will be liable for mistakes on your taxes. However, you can always tell the IRS what happened (you took your correct info to the CPA in good faith and they gave you bad advice) and the IRS will most likely be lenient with you. Then they will go after the firm and you can sue the firm as well.

If the firm screws up and they know it, they most likely will settle a case or just pay your dif/int/penalties in exchange for not suing them.

Hope this helps. When am I gonna get rid of the *? I think I've been helpful on this board at least.

[DavidNB]

What does the * stand for?

[MyTurn2Raise]

*= violated OOT rules...read the FAQ in other other topics

[Ron Burgundy]

Next year, go to an EA instead of a CPA.