I had some issues with back taxes done by a family friend/CPA a few years ago and I decided to take care of it now before I had kids and life got busier... The CPA didn't file my state taxes for two years I worked at sea. He thought that because I worked at sea I didn't need to file state tax and was told by another CPA that I didn't have to file state tax...I didn't think it was right after contemplating it for a while and found out my gut feeling was correct so I paid the taxes. There were also interest and penalties added on to this which the family friend/cpa took care of. I also sent in a letter for an abatement for the penalties and was approved because I met the criteria...So I'm sitting here with a check for almost $3000...I already told the guy I'd give the money back to him but I wondering if I should?
Yes, you should. He did the honorable thing by paying the penalties now you should do the honorable thing and return his money since there were no penalties.
I would send it back. Always take the high road. He made a mistake but took the high road and paid for it.
You sent the letter? Any indication from the CPA that you should try sending the letter? Did the CPA draft the letter? If the answer is no to those, I'd give him half. That's just me, though, because you didn't have to send the letter since he paid the fees. So, in the end, you wouldn't have that money if it weren't for you. So, if you're feeling bad about earning the $3k by working through the process, give him part of it.
No he did nothing...I had a friend who is another CPA...not my parents friend, do all the work...I just confronted the guy and basically said I have to take care of this now because if I wait and I get hit with an audit ten years from now we'd be talking about a lot more money involved...in the beginning he insisted twice that I just sit on it...being that there wouldn't be a statute of limitations because it was never filed, I took in into my own hands to get it taken care of.
Cash the check. Give him half in real money, in his pocket it's tax free.... spend the other half. LOL You said you'd give it back. He paid it. It's his money. No harm...no foul if there were no penalties. It probably puts a big red flag on your file at IRS. Be ready for more audits.
I agree with giving it all back to him. It's his money they are refunding, I really don't see why you are considering keeping any of it at all - it's not yours to decide what should be done with it. If someone needs to make a decision, its him.
