Tax refund question and awful tax preparer

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nyc888
Posts: 22
Joined: Wed Mar 07, 2018 6:10 pm

Tax refund question and awful tax preparer

Post by nyc888 » Wed Jun 20, 2018 5:04 pm

Hey everyone,

Quick question - my accountant screwed up my resident status in my 2016 returns so I asked him to help me file amended returns for tax year 2016. What happened was I under-paid NY state taxes and over-paid NJ state taxes initially (because of his ignorance), so after I filed amended returns, I sent a check for the difference to NY and received some additional refund from NJ. This week, I just got a letter from NY saying I owe them interest (~7%) for the check I sent in because I underpaid and it has been a year, with interest accruing daily...

My question is: am I owed interest by NJ for the overpayment in 2016? The NY interest bill is quite large and my accountant refused to help me pay in anyway despite he acknowledge it was his fault. Can I call NJ and ask for the interest on the refund I received?

For my accountant, there has been a nasty fight between me and him over that interest bill ($1.2k). He simply said he wouldn't share any of this cost and he didn't know how to file NY taxes to begin with, which was completely not true otherwise I wouldn't have hired him. Are there any pressure points I could use against him? I think he's just a local tax preparer without any yelp or Google review page..

Many thanks!!

JBTX
Posts: 3339
Joined: Wed Jul 26, 2017 12:46 pm

Re: Tax refund question and awful tax preparer

Post by JBTX » Wed Jun 20, 2018 5:45 pm

nyc888 wrote:
Wed Jun 20, 2018 5:04 pm
Hey everyone,

Quick question - my accountant screwed up my resident status in my 2016 returns so I asked him to help me file amended returns for tax year 2016. What happened was I under-paid NY state taxes and over-paid NJ state taxes initially (because of his ignorance), so after I filed amended returns, I sent a check for the difference to NY and received some additional refund from NJ. This week, I just got a letter from NY saying I owe them interest (~7%) for the check I sent in because I underpaid and it has been a year, with interest accruing daily...

My question is: am I owed interest by NJ for the overpayment in 2016? The NY interest bill is quite large and my accountant refused to help me pay in anyway despite he acknowledge it was his fault. Can I call NJ and ask for the interest on the refund I received?

For my accountant, there has been a nasty fight between me and him over that interest bill ($1.2k). He simply said he wouldn't share any of this cost and he didn't know how to file NY taxes to begin with, which was completely not true otherwise I wouldn't have hired him. Are there any pressure points I could use against him? I think he's just a local tax preparer without any yelp or Google review page..

Many thanks!!
I seriously doubt the tax preparer is liable to pay any of your personal tax obligations, even if the error is his. The only recourse you would have is to sue him, and that probably isn't worth the trouble.

I would strongly recommend you seen a new tax preparer, preferably a CPA, and get that person to help sort out the mess.

Gill
Posts: 4372
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Tax refund question and awful tax preparer

Post by Gill » Wed Jun 20, 2018 6:57 pm

Most CPA’s take the position they aren’t obligated to pay interest because the taxpayer had the use of those funds during the period in question.
Gill

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