Monetary penalties are imposed swiftly, adding to a company’s financial burden at a time when the cash flow outlook may not be positive. In cases such as this you can enter negotiations with HMRC, taking responsibility for the error, but also explaining that it was your agent who made the mistake and requesting more time to pay.
What are the most common mistakes people make when filing their taxes?
The most common mistakes people make when filing their taxes are neglecting to include necessary information, according to Mark Jaeger, director of tax development at tax preparation firm TaxAct. Filers frequently forget to give correct routing numbers for their bank accounts or make an error when listing their Social Security numbers.
Can a tax preparer be held liable for a mistake?
After a change in tax laws over a decade ago, anyone who prepares a tax return can be held liable for mistakes made in preparing a return for someone else. A tax preparer who made mistakes in your return could be subject to an IRS monetary penalty.
What to do if HMRC makes a mistake?
In cases such as this you can enter negotiations with HMRC, taking responsibility for the error, but also explaining that it was your agent who made the mistake and requesting more time to pay.
Can a company take an accountant to court?
If the error is a serious one and has affected your company’s ability to pay other suppliers, you may be able to take your accountant to court if they have admitted their mistake.
What happens if I sue my accountant for extra fees?
– If you have not paid HMRC the extra amount that you owe (in fees/interest) then chances are that the Court will not honour your claim because technically you have not yet lost the funds that you are trying to sue your accountant for. Does your accountant have professional indemnity insurance?
