u/euphramjsimpson

▲ 24 r/taxpros

Follow Up IRS penalty ethical question

Original post here

Long story short, I made a dumb mistake when filing a tax return and didn't catch it on my review. Normally, it would have seemed off to me but the young taxpayer still had a big payment and I missed it. Totally my fault though, no excuses.

I did end up cutting a check to him for all of the penalties and interest on the notice. It wasn't a very simple return and he is a young kid so I only charged him $500. Those penalties were $1200.

So he sent in the payment but his 2025 refund also was garnished. I initially though that the IRS just wasn't talking to itself, like they do. That may still be the case, and I'm getting a POA to talk to them, but going back and looking at it, the original notice is dated March 2 (and I know the dates on those things can be weird), but he didn't send it to me until April 20. I looked at it, realized I was in the wrong, advised him to pay it, and dropped a check in the mail right away.

So it may be (caveat that the IRS could just be wrong), that there was another $1100 in penalties and interest added to his balance. That amount feels way high to add, but worst case scenario, if it is right, what would you all do?

Some people originally suggested that I pay penalties only. It is true that he held on to the $9000 underpayment for two years. I didn't do that, however. I owned up immediately and cut a check for it all. It's tough because it is originally my mistake but the client is asking me to send him another check for the difference.

I certainly want to do right by him and I feel like I have done so, but it rankles a little if part of the issue is his not getting to me right away. I also only did his return the only year because of the complexity. I'm inclined to adjust for the penalties only but can't decide.

Thanks in advance for your thoughts.

Edit: to grumble once again about the IRS taking two years to send in a notice that their computers should have caught in one second. Something needs to change.

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u/euphramjsimpson — 6 days ago

My son is graduating tomorrow morning and I’m crying myself to sleep

He has done so well. He is so kind and so handsome and so smart and has so many accolades.

He went to a get-together with his wholesome friends tonight and I started watching Django Unchained. He got home and went to bed and I got to the part where Django finally met his long-lost wife and I lost it.

My family is in town staying at a place fraught with meaning for what I thought was supposed to be my life so I guess it stands to reason I’m feeling emotional. I truly thought I was doing right by her. We were doing what we planned. It’s been seven years and I don’t understand it any more today than when she told me she didn’t know where we were going.

It’s a good movie, but it’s stupid for me to let something like that get me worked up. She was a difficult wife but I loved her for who she was. It’s tough to know I wasn’t enough to have that be reciprocated. My best guess is that was her problem but that doesn’t make it any easier and it won’t give me back the three and a half years that my son was becoming a man and I didn’t get to breathe the same air as him. It’s nowhere near okay or right.

I still read all these posts and get worked up. But I don’t lament as much as I used to and it’s been a long time since I cried myself to sleep.

I guess that’s progress.

Thanks to all of you and to the ether for letting me say what I never do anywhere else.

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u/euphramjsimpson — 23 days ago

I’m looking for suggestions for books to read with my son. I’ve always read to him and he follows very well but we just started the Silmarillion and it is losing him. Understandable I know. Heretofore we’ve read:

The Hobbit (at 6 and the evening we finished he asked to start again so we read it twice)
Lord of the Rings
Narnia books
His Dark Materials trilogy
Wizard of Earthsea
Tiffany Aching books by Terry Pratchett
Other Terry Pratchett (Mort, Eric, the Light Fantastic)

Others I’m sure but that’s the gist.

Any suggestions are very welcome. Thank you!

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u/euphramjsimpson — 2 months ago