Tax Day 2025: Did Your Tax Professional Make a Mistake? Here’s Who Has to Fix It

Tax Preparer Mistakes: Who Bears Responsibility? A Guide for Taxpayers

Filing tax returns can be complex, and errors are possible even for experienced tax professionals. If you’ve engaged a professional to manage your tax return this year, understanding responsibility for errors is crucial. This article clarifies who is accountable if your tax preparer makes a mistake.

Prevalence of Tax Preparer Usage

Many taxpayers utilize or consider using tax preparers. A recent study indicated that approximately 22% of individuals plan to use a tax professional. While many opt for Certified Public Accountants (CPAs), others choose tax lawyers. Some taxpayers may avoid tax professionals due to cost or the perceived simplicity of their tax situations.

The decision to hire tax professionals often stems from the desire for assurance and accuracy. However, errors can still occur, highlighting the importance of understanding how to address mistakes made by a tax professional.

For comprehensive information on this topic, continue reading. For additional tax guidance, explore resources on potential tax refund delays due to government shutdowns and deductions for student loan interest payments.

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Understanding Responsibility for Tax Preparation Errors

Ultimately, you are responsible for correcting errors on your tax return, even if a professional prepared and filed it on your behalf. While some tax professionals might offer assistance in rectifying their mistakes, they are not legally obligated to do so.

Jassen Bowman, an IRS Enrolled Agent, stated, “Under federal law, the consumer is always responsible for the content of their return. This is underscored by the requirement for taxpayers to sign returns, affirming their accuracy, regardless of professional assistance. Although penalties exist for preparers, the taxpayer ultimately bears responsibility for penalties, interest, and even legal repercussions in extreme cases, even if the error is unintentional and made by a reputable tax preparer.”

Steps to Minimize Tax Preparation Errors

To mitigate the risk of errors, carefully examine the service agreement with your tax professional. Check if it includes provisions for assistance with mistakes they might make. If such a clause is absent, consider requesting its inclusion in the agreement.

Incorrect income reporting is a frequent source of tax errors. These errors can result in either a larger refund for you or an underpayment to the government. Regardless of whether your tax professional’s mistake leads to an overpayment or underpayment, you remain obligated to settle any outstanding balance with the IRS.

Prior to submitting your return to the IRS, thoroughly review the completed document. Bowman advises that taxpayers should scrutinize the return because instances arise where “the preparer did not accept accountability, claiming the taxpayer failed to disclose information or provide necessary documentation.”

Correcting Tax Errors: Filing an Amended Return

Many minor errors on your initial tax return, such as inaccurate income reporting, can be corrected by filing an amended return. Form 1040-X is used for this purpose. Detailed information on the amended return process is available here.

Accountability of Tax Professionals: Legal Recourse

In most instances of tax preparation errors, compelling your tax preparer to take responsibility is challenging unless they voluntarily offer to do so. However, if you suspect a serious error or misconduct, you can report them to the IRS using Forms 14157 and 14157-A. The IRS may impose penalties, potentially revoking their credentials as paid tax professionals.

For significant issues, consulting with a lawyer about potential legal action against your tax preparer is an option.

For further tax-related information, check your eligibility for the child tax credit this year.