What to do if a CPA never finished filing formation papersfor my new company?

UPDATED: Apr 21, 2011

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What to do if a CPA never finished filing formation papersfor my new company?

I paid a CPA to start a new company last year. I have been trying to file the taxes for company, and found out the CPA never registered company with the state although I have an EIN #. I can’t finish my taxes.

Asked on April 21, 2011 under Business Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

1) Finish (or start over) filing/registering.

2) In the meantime, contact state and federal tax authorities, explain the situation, ask how best to resolve it--it's always better to ask for help upfront, then wait until they come to you stating you did something wrong.

3) Once you determine what, if any, additional costs you incurred due to the CPA's negligence, failure, etc., you can decide whether its worth trying to recover those costs from him (e.g. sue); you could seek to recover out-of-pocket costs to finish the registeration, the return of monies paid to the CPA which he did not earn by not doing the work, and/or any interests and penalties you may have to pay.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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