Stay salty.

And focus on the priority: fixing the tax returns and fines asap.

Literally nothing else matters right now.

Once that is stabilized, you can return to the crusade against your former CPA.

Trying to do both right now actually increases the risk to you.

I have successfully worked with a client to catch up on years of tax returns and corrections. It takes a ton of focus and effort.

Once that is completed, your business can operate freely and you have space and income to pursue the CPA.

Troy91 said:

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Once that is stabilized, you can return to the crusade against your former CPA.

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Retired CPA here.

CPA is a state issued license and can be revoked. You can file a complaint here:

https://www.tsbpa.texas.gov/enforcement/filing-complaint.html

This all assumes he is a CPA and not just a tax preparer and bookkeeper.

amg405 said:

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Good news update:

I met with Loyal Ag's contact by phone today and he has a full understanding of the case and agreed to take it on. It is a much bigger firm that has the resources to handle what's going on. It is pretty relieving to have someone on our side. Also very important that we're able to spend our working hours generating revenue instead of cleaning this up.

Turns out the previous guy was not a registered CPA but is an "agent" or whatever - so he can sign the returns but nobody in that office is a CPA. Quite the lesson in due diligence for me. Woof. I also discovered he was sanctioned by the state in 2018.

I'm in full agreement that the previous firm is not a priority or focus for us.

We have a legit plan in place to move forward on fixing everything and I feel pretty good about the direction we're moving in. Thanks again to all of y'all that advised us on this - definitely not the best way to become much more literate on how taxes work.

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That's great news! Happy it worked out.

amg405 said:

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Turns out the previous guy was not a registered CPA but is an "agent" or whatever - so he can sign the returns but nobody in that office is a CPA. Quite the lesson in due diligence for me. Woof. I also discovered he was sanctioned by the state in 2018.

I'm in full agreement that the previous firm is not a priority or focus for us.

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lol, that person not being a CPA but being referred to as one is quite common. When we bought our RV park, quite a few of the folks there would ask me questions about tax, or ask me to do their return (I always refused), or would make comments that "their CPA" said they could do this or that. I would question them about it and turns out "their CPA" had a profile something along these lines: almost always was a woman and operated under something like "Betty's Bookkeeping and Tax Service and Tanning Salon." lol. Nearly everyone that rented from us would take $20,000 to $40,000 in deductions for employee business expenses for working away from home, but ignore the $2,500 to $3,500 a month they got for per diem expenses. Later the law change did away with most of that issue.

Good idea to focus on the now rather than the prior firm. At some point you likely should be made whole as to any penalties you had to pay but if they have a good attorney they will no doubt do all they can to shift some of the blame for what went on to you.

Hope this all works out for you.