USA Account filed extension withou telling me and now I can't complete a home purchase


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Hello. I am a business owner who has used the same CPA for several years. I just applied for a home loan and went under contract for a house. However, the financing is being held up because the bank is having problems obtaining my tax transcripts from the IRS. Come to find out, my CPA filed and extension (without telling me). The IRS has no tax transcript for me because they were never filed! My CPA finally filed them now but it will take up to 8 weeks to be able to obtain the transcript the bank is requiring. The seller of the home is frustrated as we have already renewed the contract once before to give us more time to work out the problem with the IRS, he doesn't want to renew again so I have now lost the option to buy the house.

I had already given notice at my rental and must move out by the end of the month. I will now be out money since I will have to find a new rental and pay first/ last and deposits. I should have beenin my new place by now.

Is it common practice for CPAs to file extensions without notifying clients?
Also do I have any recourse?

Thanks for any advice.
 
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kirby

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If you sue the CPA saying that you did not know the return was not filed but that an extension was filed, you have to prepare for this question from defense atty:

"Mr. BusinessownerNM - you say you did not know the return was not completed and sent in - but IRS requires you to sign your tax return. How could you not know?
 

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