Legal Question in Legal Ethics in Rhode Island

late filing of estate taxes

My mother died in June 2001. I hired a lawyer in November 2001 to handle the estate matters. He hired an acoountant to do the taxes. The taxes were fied late and the estate was assessed $8,000 in penalites and late fees. The lawyer's response was to question why we were upset because it was ''just $6,ooo''. IRS corrections of the filing increased it to $8,000. I am now faced with paying the accountant fees. I have already paid the lawyer. Must I pay the accountant? I have been notified by the IRS that I do not have grounds to have the $ amount reduced an it has been paid.


Asked on 3/29/03, 11:09 am

1 Answer from Attorneys

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Re: late filing of estate taxes

"The taxes were fied late and the estate was assessed $8,000 in penalites and late fees." Why were the taxes filed late? How late? Had your Mom filed all returns on time previously? These are just some questions that anyone would need to ask before concluding there was malpractice on the part of your counsel or the accountant to whom he referred the task of preparing the estate tax return. Also, an IRS "correction" does not necessarily mean the return was wrong in the first place; reasonable minds can differ over interpretation of the Internal Revenue Code - the Code is an excellent example of poor drafting, and of the harm that can come from drafting "by committee." Finally, unless there is a factual basis to believe the accountant was professionaly negligent, you agreed (either as stated in the fee agreement itself or, if there was no written agreement, as implied by law) to pay the accountant for his professional services, and should do so (as important as the legal obligation, there is also a moral obligation to pay, in my opinion). Call me for a consultation, if you like, at 401-941-7771.

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Answered on 3/29/03, 5:15 pm


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