Tax Claim

A CPA performed tax preparation services for a difficult client for a couple of years. After the client failed to comply with the CPA’s multiple requests for records, the CPA sent a letter to the client terminating the engagement. This allowed the client more than 30 days to retain a new tax preparer for his 2009 taxes. Now the CPA has found himself embroiled in litigation because of this former client. Apparently, the client had not filed his 2009 tax return in a timely manner and he alleged that it was the CPA’s fault for failing to file an extension for him. The claim settled for $130,000.

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