I just wanted to ask a quick question to any lawyers or CPA's out there. My family business recently fired our CPA (C.L.) because we felt he was ripping us off. This was about 2-3 weeks ago. Since then we hired a new CPA (T.H.) and faxed C.L. a letter authorizing the release of all our info to T.H. (as requested by our old CPA). After that C.L. tells us we owe $700.00 b/c he started to file our taxes (which he didn't), but we were so sick of him we just paid it.

He received the payment yesterday (I have proof from FedEx) so I called his office and told him that T.H. would be there tomorrow at 1:00 p.m. to pick up all our info. He then proceeded to tell me we never faxed him the letter authorizing the release. He also said that if we change CPA's now there's a 90% chance that we'll get audited by the I.R.S. He refused to release our info to T.H. even though he's has the cashiers check for my $700.00 (that bastard). I then told him I would pick it up myself and he said that if I come to his office it'll be trespassing. WTF!!! Well after arguing, he finally said he'll release our info to T.H. tomorrow at 4:00 p.m.

So my question is to the CPA's out there, what are my chances of being audited if I change CPA's now, and can C.L. do something that'll cause us to get audited (i.e. call the IRS on us). My question to any lawyers out there is, if he doesn't release our info tomorrow and once again refuses, is there any legal action I can take considering I faxed our authorization TWICE already and he has my $$$. Thanks in advance.

PS: I LOVE MY S2K!!!! (this is an s2000 board )

 

I'd say... start busting out a lawyer... he obviously thinks you are small potatoes and doens't think you know how to handle the situation right

 

No, you won't get audited if you change CPAs. And if he writes to the IRS, whether it's true or not, he has broken a confidence which is highly unethical. And if he refuses to turn over papers, he should be reported to the State Board of Accountancy, as he is required to do so.
Now, all that said, make sure the papers you are demanding are papers you gave him to work from. His own papers he created are his and he is not required to turn them over to you or anybody. If he gave you copies of all tax returns he prepapred for you at the time he did the work, he does not have to go making copies for your new CPA.
If he gives you any more trouble, tell himn you are filiong a complaint with the Stae Board of Accountancy. You'll find them on the web under consumer affairs (Ca).
I am also curious if you are in my neck of the woods.
signed,
a CPA

 

Thanks for the reply's. All we're asking for is all the documents I have given him in 2003 so that our new CPA can use those to file our income tax. If he doesn't turn them over today, I'll let him know my intentions to contact the State board. I'm glad to hear I won't get audited. Takes a load off.

PS: I'm from San Jose.

 

If you have no objections, PM me who he is. I worked in San Jose 27 years and know a lot of CPAs.

 

Damn brotha'... how old are you!

 

54 going on 19