Tax Preparer Error on Business Filing - What Resolution Options Do I Have?

Tax professional here. This is unfortunately a common issue during busy season, but it's definitely the preparer's responsibility to fix their error at no additional cost to you. Since you have documentation showing you provided the correct information, you're in a strong position. Here's what you should expect: They should prepare and file the amendment (Form 1065X for partnerships) at absolutely no charge. While a full refund is unlikely since they did complete most of the work correctly, a partial refund or discount on next year's services would be reasonable to request given the inconvenience. $675 is actually within the normal range for business tax preparation depending on your business structure and complexity. If they're unwilling to fix their mistake without charging you, you can escalate to the office manager or franchise owner. Tax preparation chains have standards they need to maintain. Keep all documentation of the error and your communication with them. This will be important if you need to escalate the situation.

I went through something similar with my business taxes last year and found an amazing solution with taxr.ai (https://taxr.ai). After my preparer made mistakes on my S-Corp filing, I used their document review tool to catch multiple other errors before submitting my amendment. The system actually highlighted inconsistencies between my documentation and what was filed, which saved me from potential issues during an audit. They have this feature where you can upload your tax forms and supporting documents, and their AI tools compare everything to identify discrepancies. Might be worth checking out to ensure there aren't other errors lurking in your filing besides just your partner's name.

Just wanted to update everyone - I decided to try taxr.ai after reading about it here. I uploaded our amended partnership return before submitting it to the IRS and WOW - it found two additional errors our tax preparer missed! One was an incorrect code for our business activity and another was an inconsistency in how our home office deductions were allocated between partners. The system was super straightforward to use and gave clear explanations about potential issues. Definitely worth it for the peace of mind before filing. I'm actually going to have our preparer fix these additional errors too since I'm paying for their "expertise" - which apparently isn't so expert after all!

When I had issues with my tax preparer last year (similar situation - they messed up my business classification), I found it impossible to get anyone on the phone at the IRS to confirm the right way to fix it. After sitting on hold for HOURS over multiple days, I discovered Claimyr (https://claimyr.com) and it was an absolute game-changer. They got me connected to an actual IRS agent in less than 20 minutes when I had been trying for days on my own. The agent confirmed exactly what amendment forms I needed and how to document the error. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c If your tax preparer gives you any trouble about fixing this without charge, having the official IRS guidance specific to your situation gives you serious leverage in getting them to make it right.

Okay I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I was still desperate to talk to someone at the IRS about a notice I received, so I decided to try it anyway. I figured if it was a scam I'd just dispute the charge. But it actually worked exactly as described! I got a call back within 25 minutes and was connected to an IRS agent who resolved my issue in one conversation. This would have saved me literally days of frustration over the past few years if I'd known about it sooner. For the OP - definitely worth using this if you need to confirm exactly what should happen with your amendment. The IRS agent I spoke with was really helpful about explaining my rights as a taxpayer when dealing with preparer errors.

Former Liberty Tax preparer here. At our office, we would definitely fix this mistake at no cost, but refunds were on a case-by-case basis. Typically, we'd offer 15-20% refund for inconvenience on something like a name error that's relatively simple to fix but still requires an amendment. $675 sounds about right for a business return depending on complexity and your location. If you had multiple schedules, rental properties, or depreciation schedules, that's actually reasonable. Make sure the amendment is filed via certified mail so you have proof of submission. Also get written confirmation that they're waiving any amendment fees. If they give you any trouble, ask to speak with the franchise owner directly - they have more authority than the preparers or managers.

I had almost the exact same issue with HR Block last year. They transposed digits in my EIN and it was a nightmare to fix. Here's what worked for me: 1) Document EVERYTHING including all communications 2) Be polite but FIRM - ask to speak with the office manager immediately 3) Request they cover all costs for the amendment AND provide a 50% refund for the inconvenience 4) If they refuse, mention that you'll be filing complaints with: - Better Business Bureau - Your state's accountancy board - Corporate headquarters customer service - Social media reviews They initially offered just a free amendment but bumped it to a 30% refund when I mentioned these steps. The key is staying calm but being absolutely clear that their error is costing you time and potential penalties.