Legal Question in Tax Law in New York

My tax preparer neglected to put my stock income as inherited when my mother passed. Another tax preparer found the mistake and amended my return with a difference of about $12000 That I needed to pay the govt. Now I got a letter from the IRS saying I failed to estimate taxes which I didn’t know I was supposed to do because I never did that before. So I got a penalty. Which tax preparer is at fault? Also the same year I Recharactetized my Roth IRA into a Traditional IRA because my income was too high . The first preparer said I didn’t need to. The second who did the amended return said I should. Now I read that that you were supposed to claim that on your taxes. I just got a record from my bank of the info sent to IRS regarding this recharacterization. But this was never reported on the tax return. Will I get another penalty for this too? Shouldn’t the second preparer, who amended the return who I told I would recharacterize It, have claimed it on my return? He seemed to ignore it.

Asked on 9/09/20, 8:15 pm

1 Answer from Attorneys

Richard Bryan Richard Bryan Attorney PC

The problem with answering your question is your use of the phrase "my stock income as inherited when my mother passed." That can be interpreted in several ways; it's not a specific enough description for anyone to determine how to properly characterize this money for tax purposes.

Please accept my condolences on the loss of your mom. It's so sad.

Good luck.

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Answered on 9/09/20, 8:37 pm

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