Recourse for tax preparer messing up my taxes - how to recover overpayment and fees?

You're absolutely entitled to compensation here. Tax preparers have a professional duty to accurately prepare your returns according to the information provided. The fact that they double-taxed your household employee while simultaneously being the one who advised you on the 940/941 process is particularly egregious. Here's what you should request: - Full refund of all preparation fees for the affected years - Reasonable compensation for your time spent fixing their errors (document your hours) - Interest on the overpayment at the IRS statutory rate - They should also cover any amendment filing fees Additionally, you should know that tax preparers are required to have errors and omissions insurance specifically for situations like this. If they refuse to make this right, you can file a complaint with your state's board of accountancy and the IRS (use Form 14157). Keep all communications in writing, and document everything. I'd recommend sending your initial request via certified mail so you have proof of delivery.

Similar thing happened to me and I was completely overwhelmed trying to fix multiple years of tax mistakes. I found this service called taxr.ai (https://taxr.ai) that analyzed all my past returns and found even MORE errors my preparer had made. They created a detailed report showing exactly what was filed incorrectly and how to fix it - saved me hours of research and headache. The AI basically did a line-by-line review of everything and found tax credits I should have received plus duplicate payments like your Schedule H situation. I was able to use their documentation as leverage when confronting my preparer, and they immediately agreed to refund my fees plus interest when they saw how thoroughly the mistakes were documented.

I was initially skeptical, but I gave taxr.ai a shot after my previous comment. Wow, what an eye-opener! The service found that my preparer had completely missed a home office deduction I was entitled to for 2023, plus they incorrectly calculated my business mileage resulting in about $2,100 in overpaid taxes. The report was incredibly detailed - it showed exactly which lines on my return were wrong, cited the relevant tax code, and even generated amendment forms I could file. I confronted my tax preparer with the report in hand, and they immediately offered to file amendments at no cost and refunded half my preparation fees. What really impressed me was how it flagged things I never would have caught myself. Definitely worth it for the peace of mind knowing exactly what went wrong and how to fix it.

When I had issues with my preparer, I spent WEEKS trying to get someone on the phone at the IRS to confirm how to properly amend everything. It was impossible - kept getting disconnected or waiting on hold for hours. Eventually I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c) and it completely changed the game. They got me connected to a real IRS agent within 45 minutes when I'd been trying for days. The agent walked me through exactly how to document the preparer errors, how the amendment process would work, and confirmed I was entitled to interest on my overpayment. Having that direct guidance from the IRS gave me the confidence to demand proper compensation from my preparer.

I have to eat my words and apologize for my skepticism. After my frustration boiled over with weeks of trying to reach the IRS, I finally tried Claimyr out of desperation. I was connected to an actual IRS agent in 37 minutes - after I'd spent HOURS over multiple weeks trying myself. The agent confirmed my preparer had completely messed up my S-corp pass-through income and gave me exact instructions for filing Form 8867 to report preparer misconduct. They also explained exactly how to amend the returns and what documentation I needed to include. Armed with this information directly from the IRS, I confronted my preparer with confidence. They immediately offered to fix everything at no charge and compensated me for the hassle. Sometimes admitting you're wrong is worth it - this service absolutely works and saved me thousands.

Definitely file a complaint with your state's board of accountancy. I had a similar issue where a preparer messed up my rental property depreciation for TWO YEARS. When I approached them about it, they tried to blame me for "not providing clear information" even though I had emails proving otherwise. I filed a formal complaint and suddenly they became super cooperative - offering full refunds, interest payments, and free amendments. These regulatory boards have real teeth and preparers know they can lose their licenses. Make sure you have everything documented: - Copies of what you provided them - Their acknowledgement of receiving those documents - The errors on the filed returns - Estimates of financial impact

As someone who used to work in a tax prep office, I can tell you mistakes happen, but this goes beyond a simple error. Double taxation like that should have been caught with even basic quality review. Don't let them off the hook with just a refund of preparation fees. The time and stress this has caused you deserves compensation too. And document EVERYTHING before confronting them - I've seen preparers try to alter records when they realize they're in trouble.