Is Your Accountant Liable If You Get Audited?

Liability Accountant Audit Responsible CPA

Responsibilities of an Accountant

As much fun as it may be to point the finger and assign blame to other people, it’s not always the answer to all of your problems. In fact, some people wrongly believe that if the accountant you hire mess up your personal and business accounts they automatically assume responsibility. Although the thought that you won’t be held accountable for someone else’s mistakes may be comforting, it’s not actually true in this case.

You are Responsible for Your Taxes

Just because your accountant makes one or two mistakes doesn’t mean you get off free. If your accountant makes an error on your taxes, it’s still your taxes, and you will be held responsible.

Year after year, many business owners attempt to take their accountants to court for being the cause of their audit; however, ignorance of the law does not give you a get out of jail free card. Instead, it actually may make you look worse. As with any other employee you hire, it’s important that you hire qualified individuals who know the laws and also know your business well enough to ensure no mistakes magically arise.

Don’t Target Your Accountant

So if you’re considering firing or even suing your accountant, think again. If anything, they could hold you liable for withholding valuable information that he or she may need in order to do a job for you correctly.

Have you ever tried to hold your accountant responsible for a job they weren’t equipped to do? Be honest and leave your comments below.

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  • Huddleston Tax CPAs / Huddleston Tax CPAs – Burien
    Certified Public Accountants Focused on Small Business
    14900 Interurban Avenue S, Suite 271 / Tukwila, WA 98168

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve: Tukwila, SeaTac, Renton. We have a few meeting locations. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.