CPA detaining tax records during IRS audit. Please help!
Q.My ex-CPA is detaining my tax/accounting records/books/receipts half-way through an IRS audit because of a billing dispuit. Is this legal? Ethical? I can't finish my audit (an entire other issue all together, i.e. IRSholes) without my records, but the CPA will not return them unless I give in to their side of our billing dispuit. What to do?! Its ate in game here and the IRS is giving me the third degree. Thank for help
A.Call your State Board of Accountancy and report the problem to them. I am sure that they can help you with this matter. Generally, client records cannot be held for lack of payment First, the direct answer to your question. Normally, the CPA CANNOT keep your records. Your State Board of Public Accountancy can be contacted, and there will be an ethics committee, etc. You should be able to threaten the CPA with action through the State Board. If he doesn't know, then make him aware. The Board will normally take this complaint seriously. Also, IRS may have summons ability if you are friendly with the agent. Second, in fairness, what do you expect the CPA to do? His position is that he delivered the services, and all he has is your records. He knows if he gives them back you'll stiff him on the fee. He put in the time, he earned his fee. If you didn't feel he was capable of representing you, you should have terminated him at once. This is a tough situation perfectly competent CPAs can find themselves in. Someone doesn't like the way the audit is going and fires the CPA, then refuses to pay th bill. I recognize, of course, that he may be screwing you on the fee. But more likely, he has put in a great deal of time trying to save your skin, it hasn't gone your way, so you think you don't have to pay. Unlike lawyers, CPAs are prohibited from accepting fees on a contingency basis. We can't say, "You only have to pay if we win, then you pay 1/3". Thus, it is essential that we bill for the time we spend, EVEN THOUGH sometimes the outcome is not in the client's favor
Other Questions :
Irs Free File
Anyone have tales to tell, good or bad, about any of the large handful of providers offering the Irs Free File service?I've used Turbo Tax and Tax Act. Tax Act has always worked really well for me - it's easy to use and it doesn't hang up when t...
Need an attorney to solve my Irs tax debt
Any suggestions anyone has for me as to the least expensive and expedient way to rid myself of tax burden will be greatly appreciated. Soon-to-be divorced secretary, two children, Atlanta area, deeply in IRS tax debt (not consumer credit) due...
2006 Irs Rate Tax Questions ?
I do computer consulting work, will that mean the tax need to be paid at 35% rate or the standard 15%. I really do not know how IRS will know if I am Personal service co. My occpuation code is general services on tax form. Does anyone can giv...
Irs Tax Form Publication_some questions
My daughter obtained student loans to attend a state university. She paid the tuition herself and when I filled out the tax forms for the federal income taxes, I did not claim the tuition (1099t) that she paid. Even though we claimed her as a...
Penalty for ignorance of IRS tax law?
I am just getting into real estate and home business. If I decide to do taxes myself and I get audited, what is the penalty I will face for not paying taxes I may owe (due to ignorance/ lack of experience with understanding a tax law?) Do I j...