Tax/IRS question, please advice?

Question

Can you advice me how to go with this? A few months ago, I received a tax bill from the IRS stating that I owe back taxes for 2003. I used Hewitt Jackson. They must have made a big mistake with my taxes for 2003. They misrepresented my information. now I am stuck with a hefty bill from the IRS. Can someone please advice how I can successfully negotiate this bill with the IRS? I do not seem to have any recourse with the tax filing company. They are totally not responsive. I just felt that SOME of these services are not competent.

Answer 1

I need to say that under normal circumstances, the answer immediately above mine is absolutely correct. However, in 2007, JH was indicted for intentionally filing fraudulent tax returns and misleading clients (this only applied to one large region of JH franchises). In the event you believe that someone at JH intentionally misrepresented your circumstances on the return, and led you to believe it was legal, you may indeed have some recourse. Check with your state's Attorney General, and check the IRS website for information on the indictment.
The indictment was only in one area, but it is believed by some of us working in the tax field that the fraud is prevalent in many areas - we see it when the clients are used to going to JH and, for some reason, walk into one of our offices and have to change the way they've been doing things. Please don't misunderstand me - people in all fields, working for all companies, make mistakes. If what happened to you was a mistake, then you'll have to pay what you owe and move on, difficult as that may be. But I also want to caution you that if it was an intentional misrepresentation, it may affect other years. If I were you, I'd have any other returns prepared by the same firm checked out by another firm, or another tax professional. I know it sounds as if I'm trying to solicit a client here, but I don't care if you use the people I work for, or someone else, as long as you ensure you're not going to get a CP2000 for years 2004, 2005, 2006 as well - that would not be pretty.
And, for the purposes of correcting the name, a short history lesson. Jackson Hewitt Tax Services was started by Mr. John Hewitt, who left the company and started Liberty Tax Service in 1997. H&R Block was originally an accounting firm started by Richard and Henry Bloch in 1955.

Answer 2

Unfortunately you are solely responsible for the accuracy of your tax return. It doesn't matter who prepared it. Most competent preparers will cover any penalties and sometime interest if THEY make a mistake on your return. You'll ALWAYS have to pay the tax; you'd owe it anyway.

If JH is being "unresponsive" they probably feel that they did a proper job based upon the information you gave them and that the IRS had additional information that you had not given JH when they prepared the return. In a case like that, no preparer will cover you.

The IRS won't "negotiate" the outstanding debt. If it exceeds $10,000 they may entertain an Offer in Compromise depending upon the circumstances of your case. However it is NOT a walk in the park -- the application is about 65 pages or so -- and most OIC applications are turned down anyway.

Your best bet is to work out a payment plan with the IRS. You stated that you got this notice "A few months ago." Hopefully you haven't been sitting on it since then. If you have, the IRS is probably about ready to attach your bank accounts and go after your paycheck. Get cracking with them and set up that payment plan!

If you feel that the preparer at JH messed up, go in person and speak to the manager or owner. Bring copies of the tax return in question, along with the IRS notices you have received. At the very least they'll explain what is going on.

Answer 3

I would go seek legal advice, you probably have case against the tax place, I thought it was Jackson Hewwit??