Message Font: Serif | Sans-Serif
No. of Recommendations: 3
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.