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    #16
    Lawsuits?

    Originally posted by geekgirldany

    ...a client mentioned a friend of his that got audited. My client laughed and said "he blamed it all on the bookkeeper and accountant. The bookkeeper did everything"
    Yeah, that happens alright. An IRS auditor once told me that, of the thirty-something criminal cases he had argued, the defense put up by 100% of those defendants was "the accountant/tax preparer did it."

    I understand that and agree we need to be prepared using some of the counter-measures mentioned, but, still, I'd like to know how much to worry about it and the answer to that is how often does it happen?

    This board may not be a representative sample, but it could give us a clue. At last count, we had two threats and one $20 million case. So, the question remains: who on this board has actually been sued and taken to court?

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      #17
      Rephrase

      Or to put it another, more inclusive way; have you been sued; yes or no?

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        #18
        Nothing here, 34 years worth of clients.

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          #19
          I'm bid 4 opionions / thanks, wv112 / do I hear 5?

          C'mon folks---been sued?--just list YES or NO if you want.

          The count is four total: 1-no / 2-threats / 1-$20 million

          Aren't you curious? Wouldn't you like to know so you wouldn't worry about it so much and suffer less stress (if justified)? Remember the words from Wilford's commercial, "It can help you lead a better life!"

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            #20
            #5 here

            Bart, if I'm #5, count it as a "No lawsuits in 32 years" and go on to #6. But not without a prodigious comment from me, of course...

            The "other" board once had an anonymous doomsday message about New Jersey coming after a preparer for a $30,000 penalty. In his view, it was a matter of an item that was a squabble between whether New York or New Jersey could claim the tax. Never mind what NY does, we're coming after YOU! says NJ.

            I always wonder what happened to that guy - he kept us informed for a few months, but never gave us the conclusion. Maybe this is still going on.

            Those of us in uncivilized states are used to border squabbles. CO and WY have the "Range" wars, TN and KY have the "Moonshine" wars. TX and OK have the "Red River" war. But now suddenly in the land of demure sophistication, NY and NJ have the "Tax" wars....can the Cosa Nostra be far behind???

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              #21
              Wow

              I own part of an investment firm that has been in business since 1932. Never had a client complaint nor a threat in the entire history of the firm. I've been here for 12 years and nobody has even come close to threatening.

              Been doing taxes only 1 year so it's not impressive that there are the same numbers.

              I think 99% of the time it comes down to the types of clients you take on, how you run your business and whether you are a risk taker. The other 1% is just about bad luck and jerky clients who refuse to take responsibility. It's those 1% or less that can ruin a firm.

              I had a prospective investment client who had substantial assets. He informed me he did a bunch of trading with Merrill Lynch and when he lost money, took them to arbitration. I just refused to take them on as a client. They got mad but hey, I'm not taking the obvious risks. I'm sure a lot of you have seen potential clients who are lawsuit happy and just refused to take them on as clients.

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