Comparative Negligence Defense in Tax Return Preparation Malpractice Actions

Jay A. Soled, JD, LLM

Individuals who retain professionals to prepare their tax returns expect knowledge and expertise from them. In an ideal world, taxpayers want clean returns that will not attract IRS scrutiny or additional tax, interest, or penalties. But accountants harbor certain expectations about their clients as well; in particular, tax professionals want client-supplied information to be accurate, complete, and substantiated. Furthermore, they want their clients to be diligent and timely in fulfilling their tax return submission responsibilities. In light of these mutual expectations, this analysis discusses the ability of accountants to defend against professional malpractice suits using a comparative negligence defense.