If you have
hired a tax return accountant to complete your return, you expect that the work
will be done properly. However, sometimes either intentionally or
unintentionally, the tax return accountant could make a mistake on your tax return that may get caught by
the ATO which could result in certain tax penalties.
After some
alterations in law over a decade ago, anybody who prepares a tax return could
be held liable for mistakes in the preparation of a return for someone else. A tax
return accountant who made mistakes in your return could be subjected to an ATO
monetary penalty. The accounting
services provider may also get a non-financial penalty, like being unable
to prepare any returns for some time.
This is an informative blog on the topic of what you must do if your accountant
makes a mistake, and what is their liability?
Tax Return Accountant made a mistake – What may happen?
Here lies the twist! If the tax preparer makes a
mistake, you must bear the penalties. If the mistakes were caused due to the omission
of data from your end, you must work with your accounting services professional to make the corrections.
On the other hand, if the mistakes were caused by
the tax preparer, you would be required to notify him about the correspondence
that you’ve received from the ATO.
The professional accountant must analyze the
mistakes by taking necessary measures. Such measures include filing an amended
return at no extra charge. You must check the contract that you have already
signed with the tax return accountant
that mentions their liabilities.
As per ATO, below are some examples in which you
may report your tax return accountant:
· * Creating some alterations in the tax return data
· * Creation or omission of income
· * By creating false exemptions, generating large
refunds
· * Failure in signing tax returns they file and
prepare
· * Inability to provide a copy of the tax return to
the client when they ask
· * Waiting or holding the record of the client for
some time for the preparation fee to get paid
It depends upon you that how well you may
convince the ATO about the negligence of a tax
return accountant.
The ATO may then investigate and if it finds
anything wrong, the license of a tax return accountant could be rescinded.
Can I sue a tax return
accountant?
It is often the last resort as
the taxpayer has to pay a certain legal fee. But, if the tax return accountant is not registered by the ATO or state-licensed,
the only step is to take legal action. You may file a standard professional
malpractice complaint with the state court in your jurisdiction.
To avoid dealing with such
problems, it is the best option to research the candidate and find the best
that suits your requirements. Like, if you deal with complex financial
situations, you might need regular consultations by accounting services professional.
If the
tax return accountant has made a mistake, who will pay?
Originally the taxpayer is held
responsible for additional income tax, but the tax return accountant could be
held liable for the additional penalties in the form of interest and
liabilities. According to economics, the tax preparer is left with certain
small claims court as the only viable economic option.
What you
must do if your tax return accountant makes a mistake?
Bring the matter to the attention
of the tax preparer and quite often an amended return is warranted to correct
the mistake. The reputable preparers cover the penalties and interest related
to their own mistakes.
Contact
us to get the services of our tax return accountants
The tax laws are quite complex.
So it is understood that mistakes may occur. But the ATO is not forgiving. Therefore,
an efficient accountant must stay alert while filing the taxes.
The tax
return accountants at Reliable Melbourne Accountant are enthusiastic enough
that they are focused during the tax season and assure that you never have to
face any hurdles in the path of success for your business. We know how to sort out the law and certain
facts in tax controversy and take care of your rights with the ATO.
Call us now to grab our incredible services.
