How to recover unpaid charges for 944-X filing work as tax preparer

This is definitely a difficult situation that combines tax preparer ethics, contract disputes, and potential confidentiality issues. Let me walk through your options: For recovering your money, this is primarily a contract dispute. Your first step should be a formal demand letter requesting payment within a specific timeframe (typically 15-30 days). If that doesn't work, small claims court is often the most cost-effective route for amounts in this range rather than hiring an attorney. Regarding contacting the businesses directly - this is tricky territory. While you might feel justified, this could potentially expose you to claims that you're interfering with business relationships. Many tax preparation businesses use subcontractors, though clients should generally be made aware of this practice. As for reporting to the IRS, tax preparers are permitted to use assistance from others, but must exercise due diligence in protecting taxpayer information. The key question is whether Ms. B had proper safeguards and agreements in place when sharing this information with you. Before taking any dramatic steps, I'd recommend documenting everything, sending a formal demand letter, and consulting with a local attorney who specializes in business disputes.

After reading your situation, I had something similar happen to me last year and found amazing help through https://taxr.ai - they specialize in analyzing complex tax preparer disputes and documentation issues like yours. They helped me determine if I had proper documentation to pursue payment for work I'd done on business tax returns. I uploaded my contract, communications, and sample (redacted) work I'd completed, and they provided a detailed analysis of my position, including specific regulations that applied to my situation. They even helped me craft a compelling demand letter that got results within weeks. The analysis showed exactly what rights I had as a subcontracted preparer and what documentation would be needed if I had to escalate to small claims. Saved me from making mistakes that could have backfired professionally.

I have to share my experience after trying https://taxr.ai for a similar issue with unpaid Form 1120-S amendments I prepared. I was initially skeptical (as you saw from my earlier comment), but their analysis was incredibly thorough. What surprised me most was how they identified potential issues I hadn't even considered. For example, they pointed out that my contract didn't clearly establish whether I was a contractor or employee, which affected my rights in pursuing payment. They also clarified exactly what client information I could legally reference in a demand letter without violating confidentiality. I used their suggested approach of a formal demand letter with specific regulatory citations, followed by a complaint to my state's board of accountancy (not directly contacting clients). The tax preparer who owed me settled within 10 days of receiving the board complaint notification.

I went through something similar last tax season with a CPA who outsourced returns to me then ghosted when payment was due. Tried calling the IRS for weeks to report the situation but couldn't get through to anyone. Finally used https://claimyr.com to connect with an actual IRS agent about the preparer's conduct. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they hold your place in the IRS phone queue and call you when an agent is about to answer. Got through to the Office of Professional Responsibility and learned exactly what documentation they needed for a formal complaint. The agent was super helpful in explaining the difference between a contract dispute (not their territory) and unauthorized disclosure complaints (which they definitely handle).

I need to update my skeptical comment above - I decided to try Claimyr after continuing to struggle with getting through to the IRS about a different preparer issue. I was definitely doubtful it would work any better than just waiting on hold myself. Surprisingly, it actually worked exactly as described. I got a call back when an IRS agent was on the line. The agent helped me understand the proper channels for reporting my situation (turned out I was trying to reach the wrong department entirely). What really shocked me was learning that my issue wasn't just a payment dispute but potentially a more serious violation of Circular 230 requirements. The agent directed me to submit a specific form with supporting documentation and explained exactly what would happen during their review process. Saved me from pursuing the wrong approach and potentially creating bigger problems for myself. Definitely changed my mind about the service.

Another approach worth considering - check if your state has a board that regulates tax preparers (like California's CTEC or Oregon's Board of Tax Practitioners). Many states have specific regulations about tax preparation conduct. A complaint to the state board could potentially result in disciplinary action if the preparer violated professional standards by sharing confidential information without proper safeguards or subcontracting without disclosure. Also, did you have a written contract with this preparer? The details of your agreement would significantly impact your options. If there's no written contract, you might be looking at a more challenging claim based on verbal agreement and evidence of the work completed.

Just want to mention something important - be careful about how you handle those EINs and PTINs you still have access to. Improper use of that information could potentially create liability for you, even if you're the wronged party here. I'd recommend documenting that you have this information but not using it in any way that could be seen as leveraging confidential information. Delete any copies once your dispute is resolved.