Tax Preparer Errors

Today TaxMama hears from H A in the TaxQuips Forum who is very nervous. (Let me paraphrase the question.) “Her tax preparer made significant errors in her 2010 tax return. She didn’t get to see it before he efiled it. Now, she wants to know if she’s going to get audited and what other trouble she might have as a result of his errors.”

Dear H A,

I am so sorry your preparer was so careless.  However, it IS good that you have become familiar with the importance of reviewing your tax returns before they are filed.  Never let anyone file anything for you until after you have seen it.

Do NOT sign the Form 8879 until you have reviewed your tax return.  

As to your fears?

I don’t know if you will be audited due to these errors. You don’t explain what the errors were, or how major they are. However, just by filing the amended return, you are going to be involved in a mini audit. The 1040Xs are all reviewed by live, breathing IRS agents, not computers. So be sure that all proofs are enclosed with your amended return so the IRS examiners have everything they need to complete their review of your amendment.  

Typically though, this should not generate any further audits.

You will be fine. It’s a good experience to have – once.

And remember, you can find answers to all kinds of questions about errors on tax returns, and other tax issues, free. Where? Where else? At www.TaxMama.com.

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One thought on “Tax Preparer Errors

  1. sethu subramanian says:

    Yes, it is better to file a 1040X as soon as possible with all the corrections rather than wait for the IRS to find out the errors. It is a guessing game whether they will do so or not. Now when you file the 1040x, make all the correct entries and explain in the space provided on page 2 of 1040x as to why the corrections were made. For some corrections you may state “due to oversight”. For others give a valid reason such as “an additional 1099 was received later due to —–” , or “the deduction was taken thinking it was valid but now I found it not to be so” etc. Enclose proper documents if you have them to support your explanation. If an explanation follows each correction you will have a smoother sailing. Recently I filed (for a family member) 3 1040x’s and within 8 weeks they were all approved and refunds were received (with interest, I might add). Good luck!

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