My tax guy told me to ignore the IRS notice and he was dead wrong

Back in 2021 my CPA in San Diego said a notice from the IRS about unreported income was just a form letter and to toss it. I followed his advice and six months later they took $1,800 out of my bank account without warning. Turns out a side gig I did for a friend's company in Chula Vista got reported to the IRS but never put on my return. Had to pay a penalty on top of the tax owed because I missed the response window. Anyone else get burned by trusting a professional who brushed off a government letter?

3 comments

3 Comments

joelt7019d ago

Hey hold on, that's kind of on you for not double checking. CPAs are human and make mistakes (shocking, I know) but the IRS notice is literally a legal document telling you to respond. A buddy of mine ignored a similar letter from his own accountant and got hit with a lien on his house. Professional advice is only good if you actually read the fine print yourself - especially with the IRS breathing down your neck.

morgan_bailey9319d ago

Heard a tax lawyer say the same thing on a podcast last week.

cameronn625d ago

Joined the "trusted the pro and paid for it" club myself once. Except my guy was wrong about a deadline and I got hit with late fees so bad it felt like a second tax bill. Real smooth move by both of us.