Regular Contributor
deg757
Posts: 118
Registered: ‎08-13-2012
Re: Could be denied due to my taxes???? Need insight please

I can not address this issue from the loan standpoint but as I am a CPA and do taxes for a living I can shed a little light on that side of things. If your tax return is incorrect, you should have an amended return prepared. I imagine that you will owe more tax with it as he has caused you to show a loss on your non-existant business which lowered your tax liability. Should you go this route, be prepared to pay additional tax and penalties and interest for not paying timely. Whether that was your fault or not, the IRS doesn't care. I don't know if this would help with your loan or not, but the IRS can audit your tax return anytime in the next three years. That is unlikely, but a definite possibility.

 

As far as action against the tax preparer, there are not a lot of options there as you were most likely required to sign either the tax return before it was filed or an e-file authorization form which states that you are taking responsibility for the information that is included on your return. If he is a CPA (you don't have to be a CPA to file taxes) I would recommend contacting the state society of CPA's in the state he is licensed in to report him. This would start an investigation by the state society and licensing board. Be aware that this action carries serious consequences to the tax professional (loss or suspension of license) and should not be taken lightly. Once a license has been revoked for unethical behavior, it can never be reinstated.

 

All that being said, good luck. I hope it works out for you. I would be really interested to know how this resolves, keep up posted.

Starting scores 2/27/12 TU 605 EX 576 EQ 560
Current scores lender pull 9/6/12 TU 663 EX 629 EQ 645
Closed on our first home 10/26/2012!