My accountant, who I like very much, made an error on my 2001 tax return. It resulted in an interest payment of about 300 dollars. Since I like him, I didn’t want to start an arguement and thought I would ask here. How are situations like this generally handled? Obviously, I owe the tax, it would have been there whether he made an error or not. Should I ask him to pay the interest? Or should I just pay it myself? How are these things generally handled? Note that he admits he erred, not that I misled him or failed to give him any need information.
Since you like him, and seem to consider his work product adequate (despite the mistake), why not suggest that he offset the $300 against your tax prep fee for this year/next year?
You had “the use” of the money that led to the interest, thus yes- you owe the interest.
If there had been a penalty, then the IRS should waive it if you depended on the advice of an “enrolled” preparer- those are- Tax Attorneys, CPAs and Enrolled Agents (E.A.)
OTOH, do mention it to your Accountant. If he then offers to “make it up to you”, (or pay it) then accept graciously.
The same thing happened to me a few years ago. Since I already paid several thousand in taxes every quarter, a couple hundred dollars didn’t really matter that much to me. She offered to pay the interest, but I just let it go. I might also mention, she had just had a miscarriage at the time.
OK, DrDeth has made a good point. He did not generously offer to make it up, but I will not mention it to him. OTOH, when I first went to him I let him do my kids 1040EZ figuring it would cost like 50 bucks. Imagine my surprise when I got a bill for like $300. I complained to him, and he said to just forget it, so I definately owe him one. There is no penalty, but it is interesting that if an accountant makes an error resulting in a penalty that the IRS will sometimes waive it.
I just wanted to say that I don’t think you “owe him” at all. Are you saying he was going to charge $300 for one 1040EZ? Please tell us there were about 6 or 8 of them.