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An accountant would not be liable for IRS interest, only a penalty in this case of oversight.

That would depend on the specifics of the contract/letter of engagement.

The interest is simply the cost of funds for paying the taxes late from the original due date.

Yes, but in the case, the accountant was given the information to include in the tax filing. The oversight of not including the information is the reason that the interest is being charged. I don't see why the accountant wouldn't be responsible, unless the contract/letter of engagement specifically exempted the accountant from being responsible for the interest, even when it was an oversight on the part of the accountant that caused the interest to be charged.

I would say that there is also some responsibility on the clients, since they didn't check to be sure everything that they provided was included, so you wouldn't be able to say that the accountant was totally responsible. But the accountant does bear responsibility.

AJ
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