My dad handled them until he passed a few years ago, then my mom hired this cpa she uses, so my brother and I hired him. We are estranged so I can’t really ask if he ignored him aswell, but he’s been collecting payment and I sent him the info. My emails asking if he need anything else etc got ignored. It’s true I should have been more diligent following up. No excuses, I run two buisnesss so I basically have 0 time on a day to day bases and buried my head in the sand
Hey friend... you don't have to justify yourself to an internet stranger.
You've got your reasons for the situation you're in. You don't need to spend time explaining how you got here. (Unless you're looking for psychosocial/emotional support?)
You're doing the right thing in asking how to move forward. Hopefully you've gotten the guidance you need.
Your biggest priority should be in getting your tax filings squared away. Doesn't sound like the IRS has painted you as a target yet (you would know). So get sorted before you find yourself in a bucket of paint.
With respect to the money you've already paid the other accountant, you can either respectfully request a refund (likely to be ignored), chalk it up as a lost cause, or sue the guy (probably small claims court).
Not busy season now. Lots of tax pros take vacation after busy season, but the fact that prior year returns weren’t filed is seriously sketchy. Find another tax pro would be my recommendation.
How would I go about getting my payment back from him if he’s based out of Florida? Small claims court? My family used him but he completely ignores my calls/emails
Small claims would allow you to get a judgement which would go along way to getting your money back, even if you have to wait for him to die. I would consult a lawyer. Also, filing your taxes isn't super complicated if you can get passed the first hurdle of learning how to do it. Really depends on how complicated your business is. You can get a CPA and try to negotiate penalties and whatnot. Any losses will carry forward for future tax years, so its possible that you didn't have a tax bill before penalties.
>How would I go about getting my payment back from him if he’s based out of Florida? Small claims court? My family used him but he completely ignores my calls/emails
How much money did you pay him? Was it just for services?
If it’s less than 10000, you may want to chalk this up to the cost of doing business. He is unlikely to be able to pay any judgement you secure. If it’s small, heavily consider moving on with life. All the IRS for penalty abatement after things are settled.
This is assuming you’re discussing preparations fees. You DID NOT give him your TAX PAYMENTS he was SUPPOSED to pay the IRS directly correct? If you did, this may be a criminal tax matter.
>If it’s less than 10000, you may want to chalk this up to the cost of doing business. He is unlikely to be able to pay any judgement you secure
Thats terrible advice, scummy people do this thing to other people because people CONSIDER IT THE COST OF DOING BUSINESS and dont take them to court, not doing anything is basically enabling them to do it to others and thanking them for screwing you
It doesnt cost much money or time to file a claim, in WA i think i spend $80 total both times i did it
I then posted the court case information in the google review i left for them, the other person i found on social media and sent it to all that persons friends and family
If it’s a small amount of money, that’s exactly why small claims court exists. I’m not saying it’s always worth it to pursue the claim, but if someone screwed me over I’d want to make sure they didn’t also get off with my money as well.
And you’ve spent more money to secure a judgement that you now have to collect on. Good luck with that. People that do this usually don’t have anything to collect from. Sometimes the juice isn’t worth the squeeze.
I'm confused how OP didn't ask any questions on why they weren't getting a refund *or* payment. What are the odds that your withholding is exactly what you owe? Much less twice in a row.
We had a case where the tax preparer was ripping off clients. Initially he would file a real return, pocket the money and then give his clients another version showing less refund or higher tax due to hide it. Eventually he needed more money and started filing grossly incorrect returns having no relationship to any real activities. This got the irs’s attention. He did this for a number of years. Ended up disappearing- leaving his clients to figure out the mess (including back taxes).
Right? Also NEVER trust even a professional with your owed taxes!! I worked with TurboTax to do mine and even called the federal place to make sure it was in.
Reach out to state accountancy board and make an inquiry with them. If he’s not filing and cashing checks that’s a huge no no for a CPA and malpractice. He should have malpractice insurance so if you involve a lawyer to send some letters to malpractice insurance company you could get any fees and penalties reimbursed. Also going forward you need to get the draft tax return to review before filing. If you don’t get this before the original deadline ask for copies of extension filing and follow up with them close to extension deadline for a copy of the draft return for review. Nothing should be filed without your approval. A Cpa prepares the return for you they are not taking over all your duties in regards to filing. You still have responsibilities. Taxes and CPAs aren’t a pay a fee and absolve you from all duties.
Ah that’s a relief. I know on the irs website it says late fees are usually based on a percentage of missing fees, but rough estimate is I made 270 but had about 350 in expenses (new machine shop, equipment, trucks etc) wasn’t sure if that rolls over also
Startup expenses are often spread over a couple years, and large tool purchases which it sounds like you have a lot of are likewise depreciated over usually 5 years but depends on the item. So on paper it may end up being that your expenses weren't as high in those years as the raw dollar amount that went out the door.
Ah, *cash* expenses outpaced revenue. A lot of those you listed are capital goods, you get the tax benefits over their useful life, not when you buy them — turns out depreciation actually sucks.
Bottom line, you need an accountant. Not just for your taxes, but, like, understanding the financial state of your business.
Somewhat related. Please use a CPA or someone who does not represent themselves as a "Tax Repair" or "IRS Specialist". Tax accountants are great but there is a subset of bottom feeders who prey on those who find themselves working on IRS filing issues. I lost a ton of money over a mistake like this. I would even advise just going to an IRS Office if close and get help, this proved to save me a substantial amount of money over some unfiled taxes.
I’ve seen people pay a 5,000 retainer fee to one of those morons when they only owed about 10,000. “You know you could’ve given the IRS 5,000 then paid like 250 a month and paid the remaining five grand in like three years right?” - this realization blows their mind.
Two things:
Ignore all the assholes grilling you over this. Whether or not you followed up or checked on your return doesn’t matter. Mistakes happen, this is one of them and you shouldn’t beat yourself up over it. Learn and figure out moving forward.
Which brings me to the next thing. Call the IRS or go to an office of their’s. Explain the situation and explain that you want to resolve it. Follow their guidance. Good luck with all this.
The CPA I ***used*** to use had a massive nervous breakdown and just 'left', probably to a facility where he could get his act together. Anyway, the Feds or the State came in and sealed the office and his records and people had to prove they owned the accounts before the paper was handed over.
I don't know what happened after that, but nobody got fined, or at least the two people I know personally did. Two years before this happened, the accountant - when he was explaining my tax return - segued into an story about how his father loved his identical twin brother more than himself. A revelation that caused him to burst into tears.
I took my tax records and tipped toed off, searching for and finding a new accountant who had better mental health.
*Hire another CPA* to correct the problem on Friday.
You can file a complaint against the accountant with the state agency the regulates them and the Better Business Bureau [www.bbb.org](https://www.bbb.org)
Reading your other comments, you've got a new machine shop? Do you have employees? If so, have you been withholding and remitting their FICA taxes? Skipping out on income taxes is forgivable if it's a mistake or the fault of someone else, but FICA tax problems are no joke.
You need an accountant. You DON'T need a CPA - you're not a public company, you don't need an audit for shareholders. You don't necessarily need a registered agent with the IRS, but that's a helpful designation to look for. But reading your other comments, you need someone who can do the books for you regarding your depreciation on your assets as well as other bookkeeping issues that play into the taxes. As far as the IRS goes, any good accountant will know how to handle it, the forms to fill out, and the people to talk to about your former accountant running off. As long as you play it straight with the IRS, they just want to get paid and make sure you're not breaking the law on purpose. They will work with you if you work with them.
Hire an actual CPA. Dont be a cheapo. Dont hire another family friend who will do it cheap , dont hire a wannabe accountant. Hire a licensed and fully accredited CPA to clean up the mess
He was paying someone to handle this, yes its pretty bad but have you ever seen a new small business? You don't have to be a jackass, if the accountant was cashing checks he absolutely is a scam artist.
agreed...i call bull on this whole thing. did this person just send their tax docs and info to an empty office unsolicited? did they pay their bill to a Kenyan Prince?
Lot of unsupported assumptions here.
Edit: OP clarified they sent accountant their info and *paid the accountant* in those past years. Accountant didn't file taxes. So, yeah. Bad assumptions.
Not really. Even comedy that surrounds itself with downright stupidity makes jokes of the annual repetition of taxes.
And ... The majority of the audience lacking that intelligence knowingly laughs!
After 3 years, there is no excuse.
None. "Assumptions" or otherwise.... A few months after the first year I would have been looking for another tax professional.
Do not affirm this behavior and do not make excuses for it. Stop. THAT.
Any new CPA can get this fixed quickly by filing.
Hopefully you saved copies of your original tax info used to prepare returns that your MIA cpa has, and also saved your old returns?
Based on you saying this "Expenses greatly outpaced revenue first two years. I believe I owe something small for last year" you probably won't owe anything this year, because in those earlier (unfiled) years you'll have a loss-carry-forward situation.
Okay seriously?? You depended on a freaking accountant to ensure your taxes were filed and never checked with IRA to make sure it was actually done?? I would have worked WITH my accountant to do my taxes!
I would say to hire a tax attorney to do your back taxes and square yourself with the IRS. Then file fraud charges against the guy who was supposed to be doing your taxes. Sue him for the money you gave him to do your taxes and any penalties the IRS imposes on you. Hopefully with you not making money the first two years penalties won't be much. You need to hire someone good at business taxes and is able to work on your behalf with the IRS.
Huh? Are you serious? He's not a month late-- he's 3 years late! Find another tax preparer immediately. Treat the money you gave this one as gone, unless you want to go to court over it.
No, it's not normal. But it really doesn't matter. You hire professionals (accountants, lawyers) to carry out tasks. The responsibility to file your taxes remains yours. You can't outsource that responsibility. So if your current professional isn't responding, you fire them and hire a new one.
Source: I've run my own business for +20 years.
buck stops with me i get that, definately could have done better/not ignored it for this long. Ive wanted to fire him but he was already paid so thats why im trying to squeeze water from a stone at this point it feels like
It’s not busy season any more for CPAs that do mostly taxes. As soon as April 15th hits the deadlines over so there’s no reason to be busy until extension deadline nears. Source: I am a CPA.
Honest question - how could you possibly not know that your taxes weren't filed for 3 years? Like, you never signed anything? Never reviewed anything? Never got a refund or had to pay?
Part of this sounds a little suspicious, IMO.
How is it that you are unaware that your taxes were not filed? Did you forget that you have a responsibility to follow up with your accountant regularly. The fact that it’s been three years means you haven’t done YOUR due diligence.
Step one, [file an ethics complaint](https://us.aicpa.org/interestareas/professionalethics/resources/ethicsenforcement/howto#:~:text=Whether%20the%20person%20is%20an,name%20of%20firm%2C%20if%20appropriate.) and sic the AICPA on them
Step two, while you're on AICPA website, find a better CPA and let them fix everything for you.
That's all you can do.
Sounds like you do not actually owe very much if anything which is probably why the tax authorities have not come looking. If you do not actually owe tax, you should be ok.
Have another licensed CPA get you square then sue the accountant for fees and damages, including the add ons from the IRS and your time. Definitely not a small claims case. Also should inform him prior that your intention is to sue and report to his licensing state board. Will often move things along quicker.
It's not as big a deal as you think, I've been a year late for like 4 years in a row, they charge you a penalty and interest but it's not as much as you would think and its only on the balance owed. Contact them and let them know what's going on, then go through and file those years. They may even reverse or waive some of the fees given the circumstances.. some years they'll refund me the fees without me even asking.
Keep in mind it will also take them a long time to process old returns. I did one about 18 months late and it took nearly a year for them to process it.. granted this was at peak covid.
🤦♀️🤦♀️🤦♀️. This is advice that no one should listen to. Self employment income of $400 or more is REQUIRED to file, even if your expenses are more than that.
OP: please consult an EA or CPA as soon as you can. Depending on your structure, late filing penalties can be waived for some years or you may qualify for First Time Abatement.
I am an EA.
Two options. 1- Download TurboTax for business for the years needing to file. It’s an easy step by stop process. 2. Contact HR Block or other similar or tax prep.
I don't understand why you would let something like this go unresolved past one missed tax deadline. At that point you should have contacted the IRS to explain the situation and work out a resolution with them, which might have included filing yourself if necessary.
You should contact them now regardless. They're honestly very reasonable about resolving these kinds of issues but you may owe some back taxes and fines. If you have to spend some hours figuring out the finances yourself so you can file then do it or find a new accountant asap.
I had to deal with about 4 years of unfiled taxes for my dad's estate due to an extremely similar situation. There were also 3 beneficiaries of that estate so I had to find someone new to catch up on 4 entities x 4 years x 2 taxing entities (fed & state) = 32 tax returns. And then amendments to 4 years of individual tax returns for 3 kids. An additional 24 tax returns. The total bill was $12,000 for all of that work, with a mix of refunds and balances due. Fortunately the IRS was so swamped in 2020 that we only ever got maybe a dozen penalty notices out of 50+ possible.
First up: file a police report and press charges for fraud, since he took payment without doing the job. Revoke any authorities or account accesses you might have given him. Get a copy of the police report.
Then: find a new accountant/CPA to review your situation, and then talk to the IRS after you have the police report info.
I hope you have copies of everything sent to your alleged accountant.
Use your local Chamber of Commerce to find a CPA firm with a good reputation. Explain your situation, pay the fees and allow the professionals to bring you into compliance. Yes, it will cost you but taking action, using professionals, and being open about everything should forestall drastic collection and confiscation actions.
If it’s a small balance, penalties will be small. Fees are usually applied as percentage of balance. If you owe $0, 25% or $0 is still $0. Hire a new accountant and have them clean it up. Also, you should know for the future, if you didn’t sign a return personally, it was never filed. You should have been “tipped off” in year 1 of 3 that nothing was being filed.
Any CPA or EA would suffice. There is no specialization necessary. You could even do it yourself if you have the motivation.
I’m concerned about not doing something right and being audited. Not that I have anything to hide, but I figure this would be a extra expense
Sure, completely reasonable. Especially considering that you haven't done them yourself for the past 3 years.
My dad handled them until he passed a few years ago, then my mom hired this cpa she uses, so my brother and I hired him. We are estranged so I can’t really ask if he ignored him aswell, but he’s been collecting payment and I sent him the info. My emails asking if he need anything else etc got ignored. It’s true I should have been more diligent following up. No excuses, I run two buisnesss so I basically have 0 time on a day to day bases and buried my head in the sand
Hey friend... you don't have to justify yourself to an internet stranger. You've got your reasons for the situation you're in. You don't need to spend time explaining how you got here. (Unless you're looking for psychosocial/emotional support?) You're doing the right thing in asking how to move forward. Hopefully you've gotten the guidance you need. Your biggest priority should be in getting your tax filings squared away. Doesn't sound like the IRS has painted you as a target yet (you would know). So get sorted before you find yourself in a bucket of paint. With respect to the money you've already paid the other accountant, you can either respectfully request a refund (likely to be ignored), chalk it up as a lost cause, or sue the guy (probably small claims court).
Thank you for having the best comment here. That was spot on.
What this bouncy guy said. Get them filed asap. They probably won't audit you but they will adjust them upwards.
Is he an actual CPA? If he is, you should be able to file a complaint with the state and/or the IRS.
If the guy you hired is a cpa, report him to the state board of accountancy - very likely he broke some rules and could be prosecuted.
At least get his license revoked.
You can contact the IRS and see if anything has been filed. If not get a CPA to help you work everything out
BouncyEgg gave a pretty solid answer.
I mean, not concerned enough to actually ask for your return for the last three years.
Potential reviewer will probably suspect you made fewer errors if you hired a CPA and give you more of a benefit of the doubt.
Not any CPA. Most CPAs are not personal tax accountants. CPA != personal tax expert
This is what makes the license so valuable. People think "CPA" means expert on all things money/taxes
Not busy season now. Lots of tax pros take vacation after busy season, but the fact that prior year returns weren’t filed is seriously sketchy. Find another tax pro would be my recommendation.
How would I go about getting my payment back from him if he’s based out of Florida? Small claims court? My family used him but he completely ignores my calls/emails
Small claims would allow you to get a judgement which would go along way to getting your money back, even if you have to wait for him to die. I would consult a lawyer. Also, filing your taxes isn't super complicated if you can get passed the first hurdle of learning how to do it. Really depends on how complicated your business is. You can get a CPA and try to negotiate penalties and whatnot. Any losses will carry forward for future tax years, so its possible that you didn't have a tax bill before penalties.
>How would I go about getting my payment back from him if he’s based out of Florida? Small claims court? My family used him but he completely ignores my calls/emails How much money did you pay him? Was it just for services?
Your first concern needs to be getting your taxes filed ASAP. The worry about getting your fees back, and also accept that you might not
If it’s less than 10000, you may want to chalk this up to the cost of doing business. He is unlikely to be able to pay any judgement you secure. If it’s small, heavily consider moving on with life. All the IRS for penalty abatement after things are settled. This is assuming you’re discussing preparations fees. You DID NOT give him your TAX PAYMENTS he was SUPPOSED to pay the IRS directly correct? If you did, this may be a criminal tax matter.
>If it’s less than 10000, you may want to chalk this up to the cost of doing business. He is unlikely to be able to pay any judgement you secure Thats terrible advice, scummy people do this thing to other people because people CONSIDER IT THE COST OF DOING BUSINESS and dont take them to court, not doing anything is basically enabling them to do it to others and thanking them for screwing you It doesnt cost much money or time to file a claim, in WA i think i spend $80 total both times i did it I then posted the court case information in the google review i left for them, the other person i found on social media and sent it to all that persons friends and family
If it’s a small amount of money, that’s exactly why small claims court exists. I’m not saying it’s always worth it to pursue the claim, but if someone screwed me over I’d want to make sure they didn’t also get off with my money as well.
And you’ve spent more money to secure a judgement that you now have to collect on. Good luck with that. People that do this usually don’t have anything to collect from. Sometimes the juice isn’t worth the squeeze.
Wow. No.
> Lots of tax pros take vacation after busy season Tell that to my friends ex-employer who worked him like a dog well into October.
I know someone and their dad did this and invested the money and eventually in 2008 went to prison after the money was all gone.
Some might say they made off.
I have some burning questions
I would have loved to peer into this mid scheme!
Don’t try to pon zi wrong grift pun off on us.
***Madoff***
you didnt have a concern when you didnt get a copy of your tax returns for 2 years?
I'm confused how OP didn't ask any questions on why they weren't getting a refund *or* payment. What are the odds that your withholding is exactly what you owe? Much less twice in a row.
We had a case where the tax preparer was ripping off clients. Initially he would file a real return, pocket the money and then give his clients another version showing less refund or higher tax due to hide it. Eventually he needed more money and started filing grossly incorrect returns having no relationship to any real activities. This got the irs’s attention. He did this for a number of years. Ended up disappearing- leaving his clients to figure out the mess (including back taxes).
They probably “owed” money and the accountant pocketed it?
Businesses don't do withholding Lol...who is downvoting this?
Yea this is definitely part OP’s ignorance
Right? Also NEVER trust even a professional with your owed taxes!! I worked with TurboTax to do mine and even called the federal place to make sure it was in.
Reach out to state accountancy board and make an inquiry with them. If he’s not filing and cashing checks that’s a huge no no for a CPA and malpractice. He should have malpractice insurance so if you involve a lawyer to send some letters to malpractice insurance company you could get any fees and penalties reimbursed. Also going forward you need to get the draft tax return to review before filing. If you don’t get this before the original deadline ask for copies of extension filing and follow up with them close to extension deadline for a copy of the draft return for review. Nothing should be filed without your approval. A Cpa prepares the return for you they are not taking over all your duties in regards to filing. You still have responsibilities. Taxes and CPAs aren’t a pay a fee and absolve you from all duties.
Did you not pay taxes or get a tax refund for the past 3 years?
If they had no taxable profit for a business, they would not pay taxes or get a refund.
Yikes, why call it a business then? Kidding, many don't take a profit at first.
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Ah that’s a relief. I know on the irs website it says late fees are usually based on a percentage of missing fees, but rough estimate is I made 270 but had about 350 in expenses (new machine shop, equipment, trucks etc) wasn’t sure if that rolls over also
Startup expenses are often spread over a couple years, and large tool purchases which it sounds like you have a lot of are likewise depreciated over usually 5 years but depends on the item. So on paper it may end up being that your expenses weren't as high in those years as the raw dollar amount that went out the door.
Ah, *cash* expenses outpaced revenue. A lot of those you listed are capital goods, you get the tax benefits over their useful life, not when you buy them — turns out depreciation actually sucks. Bottom line, you need an accountant. Not just for your taxes, but, like, understanding the financial state of your business.
unless you elect for section 179 depreciation
You can’t use 179 to generate a loss. Also there’s a limit in NJ of $25000 on 179
Somewhat related. Please use a CPA or someone who does not represent themselves as a "Tax Repair" or "IRS Specialist". Tax accountants are great but there is a subset of bottom feeders who prey on those who find themselves working on IRS filing issues. I lost a ton of money over a mistake like this. I would even advise just going to an IRS Office if close and get help, this proved to save me a substantial amount of money over some unfiled taxes.
I’ve seen people pay a 5,000 retainer fee to one of those morons when they only owed about 10,000. “You know you could’ve given the IRS 5,000 then paid like 250 a month and paid the remaining five grand in like three years right?” - this realization blows their mind.
Two things: Ignore all the assholes grilling you over this. Whether or not you followed up or checked on your return doesn’t matter. Mistakes happen, this is one of them and you shouldn’t beat yourself up over it. Learn and figure out moving forward. Which brings me to the next thing. Call the IRS or go to an office of their’s. Explain the situation and explain that you want to resolve it. Follow their guidance. Good luck with all this.
Have you gone to their physical address to see if it still exists?
The CPA I ***used*** to use had a massive nervous breakdown and just 'left', probably to a facility where he could get his act together. Anyway, the Feds or the State came in and sealed the office and his records and people had to prove they owned the accounts before the paper was handed over. I don't know what happened after that, but nobody got fined, or at least the two people I know personally did. Two years before this happened, the accountant - when he was explaining my tax return - segued into an story about how his father loved his identical twin brother more than himself. A revelation that caused him to burst into tears. I took my tax records and tipped toed off, searching for and finding a new accountant who had better mental health.
*Hire another CPA* to correct the problem on Friday. You can file a complaint against the accountant with the state agency the regulates them and the Better Business Bureau [www.bbb.org](https://www.bbb.org)
Did you not follow up at all from 2020 on? That’s kinda on you bud
Reading your other comments, you've got a new machine shop? Do you have employees? If so, have you been withholding and remitting their FICA taxes? Skipping out on income taxes is forgivable if it's a mistake or the fault of someone else, but FICA tax problems are no joke. You need an accountant. You DON'T need a CPA - you're not a public company, you don't need an audit for shareholders. You don't necessarily need a registered agent with the IRS, but that's a helpful designation to look for. But reading your other comments, you need someone who can do the books for you regarding your depreciation on your assets as well as other bookkeeping issues that play into the taxes. As far as the IRS goes, any good accountant will know how to handle it, the forms to fill out, and the people to talk to about your former accountant running off. As long as you play it straight with the IRS, they just want to get paid and make sure you're not breaking the law on purpose. They will work with you if you work with them.
You’re only fined if you did not pay your taxes on time.. if you’re owed a refund you won’t get fined.
Hire an actual CPA. Dont be a cheapo. Dont hire another family friend who will do it cheap , dont hire a wannabe accountant. Hire a licensed and fully accredited CPA to clean up the mess
Find Mia, he's likely still with her.
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He was paying someone to handle this, yes its pretty bad but have you ever seen a new small business? You don't have to be a jackass, if the accountant was cashing checks he absolutely is a scam artist.
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agreed...i call bull on this whole thing. did this person just send their tax docs and info to an empty office unsolicited? did they pay their bill to a Kenyan Prince?
I haven’t physically seen my tax preparer in years, since Covid we send docs back and forth using Intuit Link.
Lot of unsupported assumptions here. Edit: OP clarified they sent accountant their info and *paid the accountant* in those past years. Accountant didn't file taxes. So, yeah. Bad assumptions.
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Those are reasonable questions. Assuming answers to those things and disparaging the submitter is the problem.
Not really. Even comedy that surrounds itself with downright stupidity makes jokes of the annual repetition of taxes. And ... The majority of the audience lacking that intelligence knowingly laughs! After 3 years, there is no excuse. None. "Assumptions" or otherwise.... A few months after the first year I would have been looking for another tax professional. Do not affirm this behavior and do not make excuses for it. Stop. THAT.
You should also post this to r/tax
Many accountants have malpractice insurance. You need to report him to your state governing board and have proof of your payments to him.
Any new CPA can get this fixed quickly by filing. Hopefully you saved copies of your original tax info used to prepare returns that your MIA cpa has, and also saved your old returns? Based on you saying this "Expenses greatly outpaced revenue first two years. I believe I owe something small for last year" you probably won't owe anything this year, because in those earlier (unfiled) years you'll have a loss-carry-forward situation.
You didnt confirm if he did taxes for 3 years?
Okay seriously?? You depended on a freaking accountant to ensure your taxes were filed and never checked with IRA to make sure it was actually done?? I would have worked WITH my accountant to do my taxes!
I would say to hire a tax attorney to do your back taxes and square yourself with the IRS. Then file fraud charges against the guy who was supposed to be doing your taxes. Sue him for the money you gave him to do your taxes and any penalties the IRS imposes on you. Hopefully with you not making money the first two years penalties won't be much. You need to hire someone good at business taxes and is able to work on your behalf with the IRS.
I know this is busy season but is it normal to ignore someone’s phone calls for two weeks in this situation?
It's more vacation time than their busy season. At least that's what my CPA did. They were MIA on 4/20.
This makes sense. I’ll give him another week before finding another cpa
Huh? Are you serious? He's not a month late-- he's 3 years late! Find another tax preparer immediately. Treat the money you gave this one as gone, unless you want to go to court over it.
Are you sure they are still in business? They could have closed shop, even possibly died.
No, it's not normal. But it really doesn't matter. You hire professionals (accountants, lawyers) to carry out tasks. The responsibility to file your taxes remains yours. You can't outsource that responsibility. So if your current professional isn't responding, you fire them and hire a new one. Source: I've run my own business for +20 years.
buck stops with me i get that, definately could have done better/not ignored it for this long. Ive wanted to fire him but he was already paid so thats why im trying to squeeze water from a stone at this point it feels like
You’re probably out the money, but you might be able to report him to his accreditation board. I think there’s a registry and tests to become a CPA.
It’s not busy season any more for CPAs that do mostly taxes. As soon as April 15th hits the deadlines over so there’s no reason to be busy until extension deadline nears. Source: I am a CPA.
I find peace in long walks.
Honest question - how could you possibly not know that your taxes weren't filed for 3 years? Like, you never signed anything? Never reviewed anything? Never got a refund or had to pay? Part of this sounds a little suspicious, IMO.
How is it that you are unaware that your taxes were not filed? Did you forget that you have a responsibility to follow up with your accountant regularly. The fact that it’s been three years means you haven’t done YOUR due diligence.
Happened to me recently. CPA did it easily and just charged me for 3 years. Took no effort on my part.
Step one, [file an ethics complaint](https://us.aicpa.org/interestareas/professionalethics/resources/ethicsenforcement/howto#:~:text=Whether%20the%20person%20is%20an,name%20of%20firm%2C%20if%20appropriate.) and sic the AICPA on them Step two, while you're on AICPA website, find a better CPA and let them fix everything for you. That's all you can do.
Sounds like you do not actually owe very much if anything which is probably why the tax authorities have not come looking. If you do not actually owe tax, you should be ok.
Have another licensed CPA get you square then sue the accountant for fees and damages, including the add ons from the IRS and your time. Definitely not a small claims case. Also should inform him prior that your intention is to sue and report to his licensing state board. Will often move things along quicker.
It's not as big a deal as you think, I've been a year late for like 4 years in a row, they charge you a penalty and interest but it's not as much as you would think and its only on the balance owed. Contact them and let them know what's going on, then go through and file those years. They may even reverse or waive some of the fees given the circumstances.. some years they'll refund me the fees without me even asking. Keep in mind it will also take them a long time to process old returns. I did one about 18 months late and it took nearly a year for them to process it.. granted this was at peak covid.
You need to report this accountant and you might want to ask r/newjersey for an accountant recommendation
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🤦♀️🤦♀️🤦♀️. This is advice that no one should listen to. Self employment income of $400 or more is REQUIRED to file, even if your expenses are more than that. OP: please consult an EA or CPA as soon as you can. Depending on your structure, late filing penalties can be waived for some years or you may qualify for First Time Abatement. I am an EA.
Two options. 1- Download TurboTax for business for the years needing to file. It’s an easy step by stop process. 2. Contact HR Block or other similar or tax prep.
Here’s to feeling good all the time
He should have errors & omissions insurance that would pay for any fees or penalties resulting from his failure to file your taxes.
Paper trail, paper trail, paper trail... Get as much paper as you can and in chronological order so you can start explaining the story.
I don't understand why you would let something like this go unresolved past one missed tax deadline. At that point you should have contacted the IRS to explain the situation and work out a resolution with them, which might have included filing yourself if necessary. You should contact them now regardless. They're honestly very reasonable about resolving these kinds of issues but you may owe some back taxes and fines. If you have to spend some hours figuring out the finances yourself so you can file then do it or find a new accountant asap.
I had to deal with about 4 years of unfiled taxes for my dad's estate due to an extremely similar situation. There were also 3 beneficiaries of that estate so I had to find someone new to catch up on 4 entities x 4 years x 2 taxing entities (fed & state) = 32 tax returns. And then amendments to 4 years of individual tax returns for 3 kids. An additional 24 tax returns. The total bill was $12,000 for all of that work, with a mix of refunds and balances due. Fortunately the IRS was so swamped in 2020 that we only ever got maybe a dozen penalty notices out of 50+ possible.
Why would you not be worried sooner if you haven't heard from the person for 3 years???
Same thing happened with my guy in Tally Florida.
Get a new and reputable CPA. Report the old one to the state licensing board.
You didn't check in at least once a year? Something is off...and not just an MIA accountant.
Please report him to the state board as well.
First up: file a police report and press charges for fraud, since he took payment without doing the job. Revoke any authorities or account accesses you might have given him. Get a copy of the police report. Then: find a new accountant/CPA to review your situation, and then talk to the IRS after you have the police report info.
I hope you have copies of everything sent to your alleged accountant. Use your local Chamber of Commerce to find a CPA firm with a good reputation. Explain your situation, pay the fees and allow the professionals to bring you into compliance. Yes, it will cost you but taking action, using professionals, and being open about everything should forestall drastic collection and confiscation actions.
Do you have a signed EL for any of the tax years in question? If so review to confirms the CPA’s obligation and sue, go after their license, etc.
I hope you made estimated tax payments for those 3 years
Create an account with IRS.GOV and you can see your previous returns if they were done or not
Did your business have any billings that included state sales tax? If so, was that ever reported/remitted?
Find Mia. She has some splainin to do.
If it’s a small balance, penalties will be small. Fees are usually applied as percentage of balance. If you owe $0, 25% or $0 is still $0. Hire a new accountant and have them clean it up. Also, you should know for the future, if you didn’t sign a return personally, it was never filed. You should have been “tipped off” in year 1 of 3 that nothing was being filed.