What Happens if My Tax Preparer Botches My Return?

Now that tax season is winding down, countless filers are undoubtedly breathing a collective sigh of relief knowing their returns are done with. This especially holds true for those who hired professionals to do their taxes for them. After all, those preparers rarely make mistakes, right?

Wrong. Unfortunately, hiring a tax preparer does not in any way guarantee an error-free return. So if you come to find out after the fact that your preparer did indeed botch your return, you may be wondering what steps you can. Your course of action will depend heavily on the extent to which your preparer messed up, but here's a basic guide to tackling this all-too-common scenario.

Couple reviewing document with man in suit
Couple reviewing document with man in suit

IMAGE SOURCE: GETTY IMAGES.

1. Figure out who's to blame

Tax preparers are humans, too, which means that they're not immune to basic mistakes. (Besides, think about it: Some of these folks are absolutely inundated during tax season, and those 60- to 70-hour weeks area apt to catch up with them at some point.) On the other hand, your tax preparer isn't a mind reader, so if you neglected to provide that person with the right information or failed to hand over certain tax forms you received in the mail, then he or she can't be held responsible for an error-ridden return.

Imagine, for instance, that your tax preparer asked you to provide details on every bit of income you received during the year, only you neglected to hand over a 1099 form listing earnings of $2,000. Since the IRS receives copies of all 1099s, it's likely to notice that missing income, and therefore might send you a bill for its share of it after the fact. But that's not something you can pin on your tax preparer.

Before you make contact about an error, see whose fault it really is. If it's yours, you can still reach out and ask for help, but you'll certainly need to approach that conversation differently.

2. See what your tax preparation agreement entitles you to

Many professionals will have you sign an agreement outlining the terms of your tax preparation arrangement, and that document should spell out your recourse in the event your tax preparer makes an error. Therefore, it pays to consult that agreement to see what protections it gives you. You may be entitled to free audit support or follow-up assistance if your preparer's mistake subjects your return to further scrutiny or causes you a problem. Even if those allowances aren't spelled out in writing, your tax preparer might offer the support you need as a courtesy -- so reach out, review the situation, and see what he or she says.