What Happens if Lawyer or Accountant Makes a Mistake

If a lawyer or an accountant makes a mistake when working for a client, who is required to pay? The client always has the option to sue and most lawyers or accountants are insured against such suits, but getting reimbursed is not always a sure thing.

When an accountant makes a mistake, the U.S. Treasury has the option of suspending or disbarring an accountant who is found to be incompetent or in violation of IRS regulations. Tax preparers might face fines or penalties – but if fines are assigned to the preparer, their client is still required to pay whatever is owed to the IRS.

Before working with an accountant, consumers need to read through their contract carefully. In many instances, if an accountant makes an error on a return, he/she will redo the return without collecting any additional money from the client. However if a customer ends up getting audited by the IRS, the line can remain fuzzy. If an accountant makes a mistake that causes their customer to pay added interest charges, it is common for the accountant to pay those interest fees. If the accountant makes a mistake because the customer did not provide all of the necessary information, this will likely fall on the customer to pick up any additional fees.



Posted on January 2, 2014 at 10:00 AM