Legal Question in Consumer Law in California

Tax Preparer Negligence- Small Claims Court

In 1999 I moved from PA to CA. I had a licensed tax preparer prepare my taxes for federal, PA and CA. I received approx. $1700 as a refund from CA.

During the summer of 2002 I started receiving notices from the CA State Franchise Tax Board stating I owed over $2300 in taxes for 1999. I contacted the tax preparer that I had paid $200. I spoke to an assistant who asked me to fax the documentation, which I did. I was finally able to speak to the woman whose business this is, who said she would help me rectify the problem and call the state on my behalf.

I was able to speak with her a few times. Each time saying that she did not know exactly what was wrong, but she thinks I may end up owing. I never heard from her again. I ended up having to pay $135 to have another tax preparer help me & I owed over $418 to CA, + penalties. The fact that the original tax preparer was negligent and did not rectify the situation as she had said she would is why I want to take her to small claims court.

Under what jurisdiction does this issue reside? Locally where I live? Am I able to recoup what I had to pay to the state of CA? How do punitive damages work for small claims court? I'm not sure what my rights are as a consumer in this case.


Asked on 4/17/03, 4:25 pm

1 Answer from Attorneys
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Tax Preparer Negligence- Small Claims Court

Because the tax preparer is in Pennsylvania and her services were rendered in Pennsylvania, you will probably have to bring a lawsuit against the preparer in Pennsylvania.

Under these facts you would be unlikely to obtain any form of punitive damages through a small claims action. Most small claims courts will not award punitive damages, and may not even have the statutory authority to do so. Further, punitive damages are generally only available for intentional conduct, not negligence.

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Answered on 4/17/03, 6:31 pm


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