This accountant was working for a corporation and was responsible of all the financial affairs, including tax payment and any other debits from the revenue of the company. The government is now coming after the dissolved corporation members for the taxes due. Is this accountant liable for these errors that he made?
2006-11-27 10:35:45 · 5 answers · asked by drummermankent 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
Unless the government can prove the accountant negligently/intentionally made errors, the accountant is not liable.
As an employee, his only professional responsibility is to attempt to the job properly. Ordinary incompetence or errors do not make him liable.
Now, if this person is a licensed accountant, he/she may lose their license - but that is not the same thing as liability.
2006-11-27 15:34:33 · answer #1 · answered by West Coaster 4 · 0⤊ 0⤋
The only way he can be held liable is if he had the power of attorney over your tax accounts (to make payments on your company's behalf) or if you had a written agreement as to what he was responsible. It's just like anything else, if you can't prove it was his fault, it's your word against his. However, if he is still in possession of the the monies that were supposed to for these taxes, that is a whole nother matter all together. But I have found that many times the IRS or state tax authorities will waive most or all the interest depending on the situation.
2006-11-28 15:15:27 · answer #2 · answered by suzieh212006 2 · 0⤊ 0⤋
The entity, even an individual, earning the income is always responsible for any tax due even if the tax due was understated by a tax preparer or accountant. The preparer or accountant may be held responsible for any interest and penalties due on the misstated tax due depending upon his relationship with the entity.
An employee of a company would not usually suffer financial liability. Either he does his job well or not. If not, he gets fired. The exception would be if he commits acts of negligence or malfeasance or embezzlement, in which case the company may sue him in civil court for money damages and/or apply for criminal prosecution.
So, the government may come after the owners of the company and the company may go after the accountant. The government will not go after the accountant.
2006-11-27 18:44:46 · answer #3 · answered by HoneySuite 5 · 0⤊ 0⤋
he can only be held liable if he had the power to decide what payments to make. If he could only recommend payments but an officer had to sign all checks then he would probably not be held liable.
2006-11-27 10:48:35 · answer #4 · answered by waggy_33 6 · 0⤊ 0⤋
Yes.
2006-11-27 12:58:53 · answer #5 · answered by robert m 7 · 0⤊ 0⤋