We hired a CPA to prepare taxes for 2011 and 2012.
Ours is a start up business (building a preschool)and so
there was no revenue in 2011 and 2012. Our CPA while preparing the
returns realized losses (30K in 2011 and 150K in 2012).
I was the tax matters member for the LLC and I had signed both the returns.
I had not reviewed the returns since I am not familiar with partnership returns.
One of the members got our tax returns reviewed by another CPA and found several errors
in our tax returns.
This member is now blaming me for not reviewing the tax returns and is going even further
calling this a "fraud".
I immediately asked him to get the taxes amended by this CPA (who found errors).
We have amended both 2011 and 2012 returns.
But this member is still not satisfied and is threatening action against me. What kind of
actions can he take and how should I prepare for this?
This is also hurting our business since he doesn't want to do business with me any more.
Ours is a start up business (building a preschool)and so
there was no revenue in 2011 and 2012. Our CPA while preparing the
returns realized losses (30K in 2011 and 150K in 2012).
I was the tax matters member for the LLC and I had signed both the returns.
I had not reviewed the returns since I am not familiar with partnership returns.
One of the members got our tax returns reviewed by another CPA and found several errors
in our tax returns.
This member is now blaming me for not reviewing the tax returns and is going even further
calling this a "fraud".
I immediately asked him to get the taxes amended by this CPA (who found errors).
We have amended both 2011 and 2012 returns.
But this member is still not satisfied and is threatening action against me. What kind of
actions can he take and how should I prepare for this?
This is also hurting our business since he doesn't want to do business with me any more.