3 ms·

Shouldn't my accountant be on the hook for the $ I owe the IRS as a late fee? He was supposed to have filed an extension, and clearly forgot.

• cd34 16y ago
  Did he file an extension? If not, and you asked him to, then yes, you probably have a case. Might be a little difficult if it isn't documented somewhere. If he did file the extension, you're going to hate this, but, taxes were still due March 15th. Filing an extension is only to give you more time to properly file and you're supposed to include a payment estimating your liability. If you filed the extension, and didn't send in an estimated payment, you're probably on the hook. You might contend that he didn't estimate the numbers properly, and, if you get a sympathetic IRS employee who hasn't heard this story a thousand times before, you might get it reduced. Your chances of getting the penalty and interest reduced strongly coincide with your ability to make quick payment. I.e. they offer to reduce the penalty to x, you're ready to write a check and send it to them tomorrow. If this is the first time it has happened, it is possible they could waive most or all of the penalty, but, leave you with the interest to be paid. Best thing to do, call. Be prepared to stay on hold, have drink in hand, and take notes. Who you talk to, what their extension is, the time you started talking with them. No matter what the outcome, the tax lien goes against you, not your preparer, so, you end up having to take care of it. The time to do all of this has to be weighed against what is more worth your time. You could easily spend 4-8 hours handling this and still owe half or more. Can you earn $712 elsewhere more quickly?