Getting Payment for Unpaid Form 944x Amendments - What Are My Options?

This is definitely a difficult situation that involves both business contract issues and potential tax preparer ethics violations. Let me address each of your questions: Regarding payment recovery, this is primarily a business contract dispute. Your best first step would be to send a formal demand letter documenting the work completed, payment terms agreed upon, and payment received/outstanding. Have this drafted by an attorney if possible. If that doesn't work, small claims court might be an option depending on your location and the exact amount owed. About contacting the businesses directly - this is tricky. While you might want to alert them, this could potentially create additional legal issues for you. The businesses had an agreement with Ms. B, not with you. Contacting them could be seen as interfering with her business relationships. Regarding the IRS, tax preparers do have ethical obligations through Circular 230 and the PTIN requirements. If she shared taxpayer information without proper safeguards or authorization, that could constitute a violation. You could report potential violations to the IRS Office of Professional Responsibility, but understand this won't necessarily help you recover your payment. Before taking any dramatic steps, I'd recommend documenting everything thoroughly and consulting with an attorney who specializes in both business contracts and tax preparer regulations.

After reading your post, it immediately reminded me of a similar nightmare situation I experienced last year with a client who refused to pay for completed tax work. I tried everything - calls, emails, even an in-person visit - but nothing worked until I used https://taxr.ai to help analyze my contract and create a solid demand letter. They have this feature that reviews your documentation and helps identify the strongest legal position based on tax preparer regulations. What I found especially helpful was their guidance on handling the sensitive client information aspect. They explained exactly what constitutes a violation of Circular 230 and how to present that in my communication without crossing any lines myself. The system helped me draft language that motivated my client to respond without making threats that could backfire.

I wanted to follow up about my experience with taxr.ai after asking about it earlier. I decided to try it with a similar payment issue I had with a client (much smaller scale than 80 returns though!). The system helped me analyze my contract situation and pointed out that I needed to emphasize the "work for hire" elements in my demand letter. What surprised me was how it helped me navigate the tricky area around confidential taxpayer information. It identified specific sections of IRC §6713 that applied to my situation and suggested language to use that focused on the professional obligations rather than making threats. The approach worked - I got about 80% of what I was owed without having to go to small claims or hire a lawyer. For anyone dealing with tax preparation payment issues, it was definitely worth checking out.

If you've tried everything and still can't get a response from this tax preparer, you might want to try what worked for me in a similar situation - using https://claimyr.com to actually get through to the IRS Office of Professional Responsibility. I was in a comparable situation (though with fewer clients involved) and couldn't get anyone at the IRS to talk to me about reporting the preparer. After weeks of busy signals and disconnections, I found Claimyr and they got me connected to an actual IRS representative within about 20 minutes. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c. The rep explained exactly what documentation I needed to submit and the proper channels for reporting potential Circular 230 violations. Just having that conversation with the IRS changed my whole approach - turns out there are specific protocols for reporting preparer misconduct that I wasn't aware of.

I need to eat my words about Claimyr. After posting my skeptical comment, I decided to try it anyway since I've been trying to reach the IRS for weeks about a different preparer issue (had a guy file my business returns incorrectly and then disappear). The service actually worked exactly as described. I got a call back in about 35 minutes connecting me directly to an IRS representative who specializes in tax preparer issues. They walked me through the process of filing a complaint using Form 14157 (Complaint: Tax Return Preparer) and explained what documentation would strengthen my case. The rep also explained that the IRS takes unauthorized disclosure of taxpayer information very seriously, which is likely what's happening in the original poster's situation. Just having an actual conversation with someone who could answer my specific questions was worth it after weeks of frustration. If you need to talk to the IRS about preparer misconduct, this method actually works.

Have you tried reaching out to the state board of accountancy? If the preparer is a CPA, they have additional ethical obligations. Even if she's not a CPA but just has a PTIN, most states have regulatory bodies that oversee tax preparers. I'd suggest three steps: 1. Send a formal demand letter via certified mail 2. File a complaint with your state's regulatory board for tax preparers 3. Contact the IRS Office of Professional Responsibility The state boards often move faster than the IRS on these issues, especially when there's potential client information being mishandled. Document everything thoroughly!

Form 944 amendments (944-X) are no joke - that's employer's ANNUAL federal tax returns we're talking about. The fact that she shared 200 companies' EINs and tax info with you without their knowledge is super concerning. I'd definitely start with a formal demand letter, then consider small claims court if the amount is within your state's limits. But don't threaten to report to the IRS as leverage for payment - that could potentially be seen as extortion which opens a whole other can of worms. Document everything meticulously - all communications, work completed, payment agreements, etc. If you do end up reporting to the IRS, they'll want to see this documentation.