From: California

Dear TaxMama,

My previous tax preparer led me to believe he filed my tax returns.  I have since found out that he never filed them. 

I just found out I am beyond my statue of limitations for a refund for money he had me send in back in 2000.

I had to get all my records from the appropriate people because he had everything.  My new tax preparer has just finished my taxes and it appears I overpaid both federal and California state taxes back in 2000. 

Do I have any chance of getting this money back?    

Sincerely,
Jules

 

 

 

Hi Jules

Odds are that neither IRS nor the state will give you back refunds. Write them a cover letter asking nicely. And when you get the letter that they refuse to issue you a refund, write them a letter again, explaining and asking for help.

Also, contact the Taxpayers Advocate's office - both IRS and the FTB have them.

But, as soon as you get the letter denying you the refund, file a lawsuit against your preparer for the amount of the lost refunds. At least you should be able to get up to $5,000 from small claims court.

If you happen to get IRS or the state to release your money before the suit....you can always cancel it.

You will have one problem - and that is the statute to sue the preparer. You may have only two years after you hired him. However, you can overcome that by invoking the date you learned it wasn't filed as the start date for those two years.

Check with an attorney about that.

And if you happen to win the judgement AND later, IRS or the state refund your money....well, then it's up to you how to deal with the preparer (whether to refund his money or not).

Don't give up on this. Keep pushing this through the various advocates' offices. You probably will get your money back.

Good luck!

Best Wishes,
Eva Rosenberg, MBA, EA