What to do if a CPA never finished filing formation papersfor my new company?

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What to do if a CPA never finished filing formation papersfor my new company?

I paid a CPA to start a new company last year. I have been trying to file the taxes for company, and found out the CPA never registered company with the state although I have an EIN #. I can’t finish my taxes.

Asked on April 21, 2011 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

1) Finish (or start over) filing/registering.

2) In the meantime, contact state and federal tax authorities, explain the situation, ask how best to resolve it--it's always better to ask for help upfront, then wait until they come to you stating you did something wrong.

3) Once you determine what, if any, additional costs you incurred due to the CPA's negligence, failure, etc., you can decide whether its worth trying to recover those costs from him (e.g. sue); you could seek to recover out-of-pocket costs to finish the registeration, the return of monies paid to the CPA which he did not earn by not doing the work, and/or any interests and penalties you may have to pay.


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