Legal Question in Legal Malpractice in California

I have had my federal tax return review since April 2022. My preparer told me that I had to wait til the IRS did their research before she would help me. I have contacted the IRS several times and the final person told me how to print my transcripts, so I did and compared the returns. I noticed that the unemployment was listed under additional income and not under other income like the previous year return. I contacted my preparer and she stated that this was not their mistake and that the IRS had made the mistake. The preparer had me sign a power of attorney yesterday morning. I contacted the preparer this morning and she stated that she has not been able to get ahold of the IRS yet. I am going to school and am counting on this money to survive through the rest of my courses. This whole thing has been so stressful. Is this considered negligence?


Asked on 8/25/22, 10:52 am

1 Answer from Attorneys

Maybe, but whose? You don't know whether it was the preparer or IRS that is wrong. And more importantly, does it even matter? It seems you have latched onto what we call a distinction without a difference. Unemployment income is reported on Schedule 1. That form is unchanged between 2020 tax year and 2021 tax year. The total from Schedule 1 is reported as Additional Income on both the 2020 and 2021 tax year Form 1040. This should have no impact on your taxes at all.

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Answered on 8/26/22, 2:38 pm


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