statute of limitations, tax malpractice


B

bm30003700

In looking back through a client's tax returns, I noticed
one year where he should have taken depreciation and didn't.
It is too late to file an amended return. What is the
statute of limitations for this client to sue for the
overpaid tax? Does it start running from the date the
return was given to the client?
 
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H

Harlan Lunsford

In looking back through a client's tax returns, I noticed
one year where he should have taken depreciation and didn't.
It is too late to file an amended return. What is the
statute of limitations for this client to sue for the
overpaid tax? Does it start running from the date the
return was given to the client?
Sounds like you're talking about possibly suing the
preparer, right?

If so, that would depend on state law. check with local
and competent legal counsel.

ChEAr$,
Harlan Lunsford, EA n LA
 
T

TaxService

In looking back through a client's tax returns, I noticed
one year where he should have taken depreciation and didn't.
It is too late to file an amended return. What is the
statute of limitations for this client to sue for the
overpaid tax? Does it start running from the date the
return was given to the client?
Are you sure it's a case of malpractice?? If, at the time
of preparation, no basis could be established (for whatever
reason), there would be no basis for depreciation.

The statutes are governed by the states. I've seen some
with 3, and others with 6 when it comes to tax preparation.
Generally, it starts upon completion of the return. I'd
expect it would be more expensive than its worth to engage
the preparer in battle at this point. Ask the preparer.
Perhaps he/she would have something on file to substantiate
reasons for not having made the claim. Here is something
from case law which might give you some insight.

http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=ny&vol=084&invol=0535
 
T

tim

First ensure you can't just fix it with the automatic
consent procedures for a change in accounting method using
Form 3115 and a section 481(a) adjustment. If the taxpayer
is eligible for this procedure, the statute of limitations
is usually not relevant.

Timothy E. Kelly, Esq.
Certified Specialist, Taxation Law
Borad of Legal Specialization
State Bar of California
 
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H

Helen, EA in PA

You can make an election by using form 3115 and taking the
missing depreciation on the next tax return.

It is easy, it works and you are up to date!

Helen, EA in PA
MS Challenge Walk 2005
October 7-9
www.nationalmssociety.com
 

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