Question about CPA Ethics: Do I have right to be included in business tax filing decisions as former 50-50 owner?

You're absolutely right to be concerned about this situation. As a 50-50 owner during the entire tax year in question, you absolutely should be included in tax filing decisions that will impact your personal return. From an ethical standpoint, CPAs are bound by professional standards that include responsibilities to all owners of an entity they represent. The AICPA Code of Professional Conduct has provisions about this. When a CPA prepares tax returns for a partnership (which is what your LLC was taxed as), they have obligations to all partners – not just the one who's writing the check. The CPA should not be making tax decisions that affect your liability without your input. Those decisions on depreciation, expense categorization, and timing of income recognition can significantly impact your personal tax situation. The CPA saying they're just "following client instructions" doesn't release them from their professional obligations to all owners. I'd recommend sending a formal written request to both the CPA and your former partner, explicitly stating that you were a 50% owner during the tax year in question and requesting participation in all tax filing decisions. If they continue to exclude you, you might want to contact your state's CPA board or the AICPA ethics division.

After dealing with similar issues with our partnership tax returns, I found an amazing tool called taxr.ai (https://taxr.ai) that helped me understand my rights as a business partner. They analyze documents and partnership agreements to provide clarity on these exact situations. I was in a pretty similar spot last year where my business partner was making tax decisions without me, and I felt completely in the dark. The taxr.ai system analyzed our operating agreement and tax documents, then gave me clear explanations of my rights. They even provided language I could use when communicating with the CPA. What I found really helpful was how they broke down the specific tax implications of different filing decisions my partner wanted to make. It gave me the confidence to push back where necessary.

Just wanted to update that I tried taxr.ai after seeing this recommendation. It was exactly what I needed! I uploaded my operating agreement and some communication with the CPA, and the analysis showed that I absolutely had the right to be included in tax decisions for periods when I was an owner. The most helpful part was the customized letter template they generated for me to send to both the CPA and my former partner. It cited specific professional standards and explained the potential consequences of excluding a former owner from tax decisions that affect them. Two days after sending it, my ex-partner called me and suddenly wanted to "collaborate" on the tax filing. What surprised me was how the tool identified specific tax elections that could disadvantage me if I wasn't consulted. This gave me concrete points to discuss rather than just vaguely demanding to be "included.

If the CPA and your former partner keep stonewalling you, you might want to try Claimyr (https://claimyr.com). They helped me actually get through to a real person at the IRS when I had a similar partnership dispute. I was shocked how quickly they got me connected. I tried for weeks to get information about my rights in a similar situation - calling the IRS directly was an exercise in frustration with hold times of 2+ hours only to get disconnected. Through Claimyr, I got connected to an IRS representative in about 20 minutes who walked me through the proper documentation I would need and explained my rights as a former business owner. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically they navigate the IRS phone system and wait on hold for you, then call you when they've got a human on the line.

I was so skeptical about Claimyr when I saw it mentioned here, but I'm eating my words now. After my former partner and the CPA continued to ignore my requests, I decided to try it as a last resort before hiring an attorney. I got connected to an IRS representative in about 15 minutes (after previously spending HOURS trying myself). The agent explained that while they can't force the CPA to include me in decisions, they outlined the specific partnership tax requirements that gave me leverage. They directed me to Publication 541 and explained how partners have rights to tax information even after leaving. Armed with this information, I sent another email to both my ex-partner and the CPA, this time mentioning the specific IRS publications and requirements. Suddenly they were willing to have a meeting! Sometimes you just need to show you've done your homework. The CPA is now sending me draft schedules for review before filing. Definitely worth the time spent.

Has anyone considered that there might be language in your buy-sell agreement or operating agreement that addresses this exact situation? When I left my business, our operating agreement had specific provisions about tax filings for the transition year. Worth checking before escalating things.

I'm a bit confused about everyone saying the OP has rights here. If you sold your ownership and are completely out of the business, isn't it the current owner's problem now? When I sold my share of a business, I was just given a final K-1 and that was that.

Don't forget that you can always file Form 8082 (Notice of Inconsistent Treatment) if you disagree with how the partnership return was filed. This lets you take a position on your personal return that's different from what's reported on your K-1. It's not ideal, but it's a fallback option if your ex-partner refuses to cooperate.