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Old 04-05-2014, 09:13 PM
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CPA calculated capitol loss incorrectly in 2008 & 2009

In 2008 and 2009 I had total stock losses of $1.5million. I just discovered my tax preparer (son) working under an accountant (his father) under-reported my losses by about $800,000 because of not understanding the wash sales rules. In 2010 my new tax preparer probably noticed this but instead of filing an amended return, he took the biggest losing trade from 2009 ($600,000 loss) and added it to the 2010 schedule C. It really looks ridiculous with the 2009 trade dates on the 2010 return. I now need to amend all my taxes going back to 2008. Any recommendations. Am I setting myself up for an audit. I am very annoyed and feel like suing but am not sure about the statute of limitations. In Mass. the SOL is three years from date of injury or 3 years from finding out about it. It could be argued that I should have seen the mistakes right away and not 5 years later. Could be a quite the small claims battle for only a thousand dollars. Besides mental anguish my only injury is the additional tax prep fees and the original fees.


Last edited by jim8153 : 04-05-2014 at 10:27 PM. Reason: new info


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