The Tax Man Cometh – Beware of Accounting Malpractice

Its the time of year when 1099 and W-2 forms start to arrive in the mail, and many people slide them in a drawer and shudder. The tax man cometh soon….but it can wait, many believe.

If you have ever visited the office of an accountant between February 15th and April 15th, you have probably seen a sleeping bag on the floor. That’s where the accountants sleep for two months, and as the deadline nears there is usually is no sleep at all. The mad rush is on.

Benjamin Franklin said “You may delay, but time will not” and it is for that reason that it’s best to resist the temptation to procrastinate and rather expedite the preparation, filing, and paying of taxes. Last-minute rushing increases the risk of human errors.

Certified Public Accountants (CPAs) are required to pass an exam given by the American Institute of Certified Public Accountants – www.aicpa.org. While the exam is the same no matter where it’s taken, every state/jurisdiction has its own set of education and experience requirements that individuals must meet.

The journey toward becoming a CPA is rigorous and after completion of studies and licensing the vast majority of accountants work hard and perform their duties diligently, honestly, and with integrity. Occasionally accountants make honest mistakes, some stretch mistakes to the point of negligence, and others are dishonest and actually commit malpractice.

The AICPA has the authority to take disciplinary action against CPAs and you can find information about those instances on the Institute’s website. Each state also has some type of government board or department that issues licenses, reviews complaints, and can take disciplinary action and enforce penalties. You can verify all professional licenses in Florida by clicking here. For other states, simply google “CPA license verification” and then the name of your state. You will find a link to the source for the information you need.

Proving Accounting Malpractice

Unfortunately, once a taxpayer has lost money due to the negligence or malpractice of their accountant, it’s not easy to get their lost money back. Fortunately, there is an avenue to pursue and that is the right every American has under the constitution, which is to seek justice through our legal system.

There is Help

Of all the types of professional malpractice that exist, accounting malpractice is possibly the hardest to investigate and prove. Special attorneys, many of them who are also CPAs, are trained to comb through computer records and ledgers to find where mistakes or malpractice may exist.

If you believe your accountant has acted negligently or there was malpractice involved in the handling of your finances, you should register on our website by clicking here. Our service is free to victims.