Is it normal for tax preparers to disclaim all liability for mistakes and errors in their contracts?

So I've been using a CPA for about 8 years now after ditching TurboTax when it made a huge error that triggered an IRS audit. The audit was a complete nightmare that dragged on for almost 2 years and cost me thousands in penalties. The whole reason I switched to a professional tax preparer was because I thought they'd take responsibility for their work and I wouldn't have to worry about mistakes sneaking through due to my own tax ignorance. But two things are really bugging me about my current accountant: First, their contract specifically states they are NOT responsible for errors or omissions, NOT responsible for advising against questionable deductions, and NOT responsible for any penalties or additional taxes that might result from their work. This seems crazy to me! Isn't the whole point of hiring a professional that they're accountable for the quality of their work? Second, they send me this massive paper questionnaire every year that's basically identical to the same questions TurboTax asked. I spend hours filling it out, gathering documents, organizing everything, and sending it all in. It feels like I'm doing all the same work as before but paying 4x more for someone to just input what I gathered into their software. Am I missing something here? Why am I paying hundreds more if I'm still doing all the legwork AND they have zero accountability if they screw up? Is this actually standard practice with tax preparers these days?

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18 comments

Caleb Stark

•8M

Tax professional here. What you're describing is unfortunately very standard practice these days. Those liability disclaimers are basically universal among tax preparers now - from small independent preparers to large national chains. It's primarily a protection against increasingly complex tax laws and the impossibility of verifying every single piece of information a client provides. The questionnaire is also standard. Most tax preparers use these detailed forms to gather all necessary information and reduce their own liability. However, the difference between a good preparer and software should be that they're reviewing your answers for red flags, identifying optimization opportunities, and providing guidance throughout the year - not just data entry. What you should be getting for your higher fee is: 1) Someone who can answer questions throughout the year, 2) A professional who understands nuances software might miss, 3) Representation if you're audited, and 4) Strategic tax planning beyond just filing. If your accountant isn't providing these additional values, you might want to interview others. While the disclaimers are standard, the service level can vary dramatically between practitioners.

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Caleb Stark

•8M

The liability disclaimers are pretty much non-negotiable these days due to insurance requirements. However, many CPAs offer what's called "audit protection" for an additional fee which covers their time to represent you if you're audited. Most CPAs don't include audit representation in their standard preparation fees. It's typically offered as an add-on service that might cost $50-$150 annually. This doesn't cover penalties or additional taxes, just the professional time to help you through the audit process. If your CPA doesn't offer this, it might be worth asking about or looking for one who does.

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Jade O'Malley

•8M

I switched to using https://taxr.ai after having similar frustrations with both software and "professional" preparers. What I love is they actually analyze all my tax documents for me so I'm not doing all the sorting and organizing. The AI actually reads through everything and summarizes what it found, then a real tax pro reviews it. Saved me hours of paperwork and they caught a deduction my previous CPA missed for three years straight. The difference is they seem to actually check your work rather than just data-entry what you tell them. I was in a similar situation where I paid nearly $600 for basically glorified data entry.

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Jade O'Malley

•8M

You basically just upload all your tax docs in whatever format you have them - even photos of paper documents work. The system extracts all the important information automatically. I had a mix of W-2s, 1099s, investment statements, and mortgage docs, and it organized everything perfectly. For complex situations, the human tax professionals definitely provide real expertise. They review everything the AI extracts and then apply their knowledge for optimizations. I have a rental property too, and they handled all the depreciation calculations and expense categorizations without any issues. They even helped me properly allocate some expenses I wasn't sure about. The combination of AI for the tedious document processing and humans for the expertise seems to work really well.

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Ella Lewis

•8M

I tried https://taxr.ai after reading about it here and I'm actually shocked at how well it worked. I was super skeptical at first (as you can see from my question above). I've been doing the same routine for years - spending a weekend organizing all my tax docs before my CPA appointment where I'd hand over a perfectly organized folder just for them to charge me $475. Their system actually did extract everything correctly from my jumbled documents. Even pulled the details from my Schedule E for my rental property. The tax pro I got matched with asked me some clarifying questions about my business expenses that my previous CPA never bothered with. Best part? I saved about 4 hours of prep work and ended up with a bigger refund than last year. Never going back to the old way.

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Andrew Pinnock

•8M

Has anyone tried Claimyr? I had issues with my taxes last year and spent WEEKS trying to reach someone at the IRS. I finally found https://claimyr.com and they got me connected to an actual IRS agent in under 45 minutes when I'd been trying for days on my own. They have a video showing how it works: https://youtu.be/_kiP6q8DX5c My tax preparer made a calculation error that led to the IRS sending me a CP2000 notice, and despite all those disclaimers in their contract, they were completely useless in helping me resolve it. Claimyr at least got me to someone who could explain what was happening.

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Andrew Pinnock

•8M

It works by using their system that continuously calls and navigates the IRS phone tree for you. When they actually get through to an agent, they call you and connect you directly to that person. No more waiting on hold for hours. Yes, I absolutely did get through to a real IRS agent. I was incredibly skeptical too, but I was desperate after trying for days on my own. Within about 35 minutes, I got a call back and was speaking with an actual IRS employee who helped resolve my CP2000 notice issue. The service basically does the frustrating part (waiting on hold and navigating the automated system) for you.

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Alexis Renard

•8M

I take back what I said above. I tried Claimyr yesterday after seeing this thread because I've been trying to get through to the IRS about a refund issue for THREE MONTHS. I figured I had nothing to lose at this point. I set up the call around 10 AM, and by 11:15 AM I was actually talking to a real live IRS representative who helped resolve my issue in about 15 minutes. After literally months of trying to reach someone, this was kind of mind-blowing. If you're stuck in IRS phone hell, it's worth trying.

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Camila Jordan

•8M

To answer your original question - yes, it's completely normal for tax preparers to have disclaimers about not being responsible for errors. I've used three different CPAs over the years and they all had similar language in their agreements. The reality is that tax preparers rely on the information YOU provide to them. They can't verify whether the numbers you give them are accurate. The paperwork is actually them covering their own behinds because ultimately, you sign the return and you're responsible for what's on it. That said, a good CPA should be doing more than just data entry. Mine reviews everything for consistency with prior years, asks questions when something looks unusual, and provides actual tax planning advice throughout the year.

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Camila Jordan

•8M

There can be significant differences between CPAs and other tax preparers, but credentials alone don't tell the whole story. CPAs have broader accounting knowledge and must meet strict education and continuing education requirements, which can be helpful for complex situations or if you need accounting services beyond tax preparation. Enrolled Agents specialize specifically in taxation and are licensed by the IRS, so many EAs are actually more knowledgeable about tax matters than some CPAs. What matters most is finding someone with experience in your specific tax situation - whether that's small business issues, investment properties, foreign income, etc. Ask about their typical clients and whether they have specialized knowledge relevant to your circumstances.

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