Estate related services generally present higher risk to CPA firms. This risk typically stems from three areas, which include:
Since the estate niche of accounting is so complex, it is important to recognize signs that could lead to a potential claim.
The following is an example of estate related accounting malpractice:
A wealthy client sought estate planning advice from a mid-size accounting firm in Miami, Florida. The client's goal was to avoid any generation-skipping tax. A CPA, who had very little gift and estate planning experience, was asked to attend the initial meeting with the clients and then told to complete the appropriate tax forms.
At the time, the Internal Revenue Service (IRS) had not issued regulations on the key provisions of the generation-skipping tax. The CPA misunderstood the statute and failed to properly complete and check the generation-skipping portion of the tax forms. The tax form was reviewed by one of the senior partners who approved it without revision. As a result of the mistake, the client faced a significant increase in tax liability, which caused the client to sue the accounting firm for malpractice.
If you feel you have an accounting malpractice case or you have additional questions, please use the form below or click here to contact us.
I understand that in visiting this site I am not entering into an attorney client relationship with Warren R. Trazenfeld, P.A., or any attorney within the law firm. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.