My CPA died and I want to sue him

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plottsch

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My old CPA died and I wish I could sue him for being a complete idiot.

I just started doing my taxes with my new CPA and she tells me I have way overpaid the IRS last year in quarterly taxes.

I was honestly paying my share on the taxable income I generated in each quarter. The goal was to keep income below (for example) $100k and reinvest the rest, but occasionally I got cash flow toward the end of the quarter and didn't have time to spend it. Of course, it would be deducted from next month's, but I still lost access to that extra tax expense in the next quarter.

The bigger issues (that my old CPA seemed to be oblivious about) is
  • I only needed to pay estimated taxes on what I made last year (for example $50k)
  • I could have deferred half of my social security tax due to COVID

So, on paper I didn't actually "overpay." I paid close to exactly what I should have, but I could have paid WAY LESS THAN HALF throughout the year and paid the remaining April 15th without penalty.

You might think, oh this is no big deal. At least it's better than getting audited. Well, yes. But I could have used the tax deferral money to grow my business and instead gave the IRS interest free loans (they pay interest when you truly overpay, not when you failed to take advantage of deferral).

So, I am pissed off. Depending on the parameters, a model I built shows that the old CPA cost me between $2k and $50k. But I don't know if I can (or want to) even sue this guys estate now that he's dead, and idk if courts will agree to the growth rate estimate that is behind the bigger estimate. So now I have to get a lawyer and start all this annoying mess.


Moral of the story: don't cheap out. Get a good cpa. Read the irs guidelines yourself and don't trust the cpa is optimizing everything.
 
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