what should I do? CPA issue

[Ombud]

Im so frustrated! We decided to have Mom's old CPA do her final taxes. Despite 4 phone calls resulting in 4 incorrect returns, I cannot get him to put in all her estimated tax payments! Im considering just lining thru his errors and sending it in. She paid $4890 in estimated taxes. He is only recording $3260 which means she owes $2600 inc a penalty. When I do it, she only owes $978

[mwcpa]

First, I assume this is a 2012 tax filing.

are you sure the payments "made" in 2012 relate to 2012?  Often a payment in the year is for the prior year (eg.  the 4 quarter payment for a year is due in January of the next).

something is wrong with the penalty calculation, if a shortfall of an estimated payments of $1,630 equates to a penalty assessment of $2,600 somehting seems not correct.  The "penalty" rate, which is like an interest charge is not over 100%.

Has the tax professional explained the total estimates on the return to you so you can see the difference or is he/she not listening and no explaining?

[Ombud]

She had $1630 of the 2011 overpayment applied as the 4/15/12 estimate, paid $1630 on 6/10/12 & again on 9/10/12, died on 10/18/12. Total tax liability is $5868. So 5868 - 4890 = $978. No penalty due as under 1k but he calculates one [rather his program does - my lacerte doesn't]. I corrected the last names & wrote the SSNs on K1s in the trust return and will resend that out today to the affected beneficiaries & file it so the trust one is fixed. Still need to get her personal one fixed ~~ tempted to just make the corrections but then he signed it so that would be unethical. Should I send a letter of explanation to the IRS? He owns the CPA firm so there isn't anyone I can go to there

• he isn't listening
• he states form 1310 must be paper filed so nothing has gone in yet

[mwcpa]

the 1310 is only needed when claiming a "refund"... seems there are balances due.....

I feel your pain... but often I have situations where clients to not listen because a friend of a friend's cousin twice removed overheard someone in the bathroom saying your dog is a tax deduction.. and they know more than me.... or they read it on the internet on a blog by a tax protestor group.....

I suggest.... file the return as he says, but since you control the check book, pay the balance you think is owed (do not opt for the ACH debit payment option).... if you are correct all will be good, you may get a notice noting the incorrect estimated payments claimed.... if he is right then you will get a bill for the shortfall..... if you overpay, you may need the 1310 for the refund (or a check will be issued to the "estate."

[Ombud]

Im correct according to the lacerte program. My brother thinks we should show up in his office Wednesday & get a correct one. Bro is clueless on taxes (but has a different CPA who does his). Thanks for helping me focus. 2013 will be different as we will only be selling a house at a loss -- no income to report.

As to Form 1310,

[Ombud]

CPA called. He 'found' something & we only owe $978 + $3 underpayment penalty. Still wants us to sign 1310 & submit a paper return 'just in case' she owes less due to our not knowing everything. [like maybe underpayment not needed?] I'm considering it done

[TheOtherMe]

Form 1310 is only needed when claiming a refund for a deceased person.  Not needed in case of balance due.

[Ombud]

An error in 2010 made 1st payment in 2011 applied to 2010 taxes due instead of 1st quarterly 2011 taxes as intended, which made 1st payment in 2012 applied to 2011 taxes due instead of 1st 2012 quarterly taxes as intended, & we've got request for extra payment (assumed $1630 pd 4/14/12 was applied to 2012 taxes but it actually pd off 2011 taxes) according to letter IRS just sent us explaining all 3 years!