My accountant will not return my documents?

Question

This man has held himself out as a CPA and he is not even licensed in the state of SC. I have contacted every agency possible to get some assistance to get my records back from him. He has left both my personal and buisness in a disasterous situation with seized accounts,liens ,penalties and bad credit.I have had to hire a new CPA to start to correct problems going back to 2006.

This fraud did prepare returns that I have refused to pay him for.He is holding all records hostage for payment.

The State has already issued a Cease and Desist order in 2006 that he ignored.

Answer 1

You have not asked a question - merely stated facts. Suggest you consult an attorney.

Answer 2

Okay...to start with, the answer to your problem is going to hinge a great deal on what level of tax preparer he is. You state that he "held himself out as a CPA" but you fail to elaborate on HOW he was doing that. Every state that I am aware of has an agency that licenses/regulates Accountants. Here in Oklahoma it is the Board of Accountancy. Any business or individual that practices accounting for a fee is required to register with the Board. Doesn't matter if you are a Certified Public Accountant, a Public Accountant or just a Bookkeeper. You still have to register. Having said that, there is a BIG difference between "performing accounting" and "preparing tax returns". Almost every accountant and bookkeeper I can name ALSO prepares tax returns...BUT it is not their primary income stream; IOW it is a sideline.



Not everyone who is a professional tax preparer is an accountant...and vice-versa.



Now if your professional tax preparer is "licensed to practice before the IRS" - then they fall under IRS Circular 230; which regulates the practice of licensed tax professionals. These are most often Tax Attornies, CPAs, PAs and Enrolled Agents. There is another group below these that are called unenrolled preparers. They are not subject to all the rules of the licensed tax pros; however this will be changing this year as the IRS is going to start 'cracking down' on many of the 'fly-by-night' tax preparers.



Having said that, there is a section within Circular 230 that specifically directs tax professionals to RETURN CLIENT RECORDS - even if there is a billing dispute...UNLESS there is a state law that allow them to retain certain records --> but, even then, the tax professional is required to allow the client 'access' to the records to make copies.



Click the first link below to pull up an Adobe copy of Circular 230 that you can save or print as you need. Scroll down to Page 18 and read Section 10.28 for yourself. You might want to print off that page and send it to your former preparer with a demand for either the records or access to them so you can copy them. You have the ability to 'report' a tax professional to the IRS. I would send a letter to your former preparer threatening to do so and see what response you get. Be sure to send the letter Certified Mail with a signature requirement so you can prove to the IRS that he received it.



G'Luck...



Mike Womack, Sr. Partner

Zero Degrees Tax LLP

Moore, OK

Answer 3

My accountant will not return my documents? This is not a question, just simply a statement! and information about a CPA.

good luck!